Financial Independence Goals Learn your numbers Fidelity Within the FI/RE community, the FI number is calculated by multiplying your annual expenses by 25. At Fidelity, we've put our math and modeling expertise behind what we think is a better calculation. We account for things that most FI/RE calculators don't, like investment asset allocation, taxes, and penalties. With these considerations included, there's a better chance that you can enjoy Financial Independence to the fullest when you get there. ! Want to know exactly how we crunch the numbers? Look for the Methodology link below
Now let s talk about your FI goal and how long it might take you to get there
Setting a goal can help you stay focused and make smart decisions now. Answer 5 questions to find out what an FI goal could look like for you
Let's go 1 5 Your current age
How old are you
I am years old
2 5 Your current monthly expenses
My current monthly expenses are
If you are not sure, click above to use our expense calculator 3 5 Your retirement budget
In retirement for my expenses I want to be able to budget
Fidelity normally assumes that expenses in retirement will decrease by 15% due to the discontinuation of costs associated with going to work. That might not be right for you or your plan; choose the budget that seems comfortable for your situation. 4 5 Your savings and investments
I have already saved this much
Post-tax savings (checking, savings, brokerage) Pre-tax retirement savings (401(k), 403(b), IRA) Post-tax retirement savings (Roth IRA, Roth 401(k)) Tax-free savings, generally* (HSA) 5 5 Your savings and investment contributions
Currently every I put this much into
Post-tax savings (checking, savings, brokerage) Pre-tax retirement contributions (401(k), 403(b), IRA) Have an employer match?
Include that in this total Post-tax retirement contributions (Roth IRA, Roth 401(k)) Tax-free contributions, generally* (HSA) Already did this? Pull from Savings Calculator. Your FI number and years to FI Here are your numbers br Remember this is just a starting point based on your current saving and spending
How much you may need to achieve financial independence Years to FI How long it might take you to get there How do you feel about this? Yay Yikes Great! Want to do even more? Many people have the same reaction! Big journeys can be scary at the beginning Here are some changes you can make to fuel the FI/RE! Here are some changes you can make to bring you closer to your goals. The most important thing is to get started—no matter how small your first step is. Save more to invest Years to FI Get some strategies here: find the ideal asset allocation to reach your goals Now that you have a FI# goal, here's the first step: Save as PDF FIREstarter Achieving Financial Independence is a journey
It’s pretty simple. Save and invest as much as you can. Spending less or earning more frees up money to invest. Depending on where you are and what's happening, you can adjust your Savings Rate, your speed to FI. Your FI RE Numbers
Your future monthly expenses (based on what you told us you want to be able to budget) How much you currently have saved At your current savings rate
Current monthly savings and investment contributions Your FI number is You may reach FI in Years Saving and investing more as you selected
Your monthly savings would be Your FI number could be You may reach FI in Years Ready to take action? Investing involves risk, including risk of loss. The trademarks and service marks appearing herein are the property of their respective owners. Your FI number is an estimate based on certain inputs you enter into the calculator and key assumptions that can help provide guidance on when you may achieve financial independence. There is no guarantee as financial independence will depend on many factors which cannot be predicted and are subject to change in the future such as income, expenses and market performance. This not designed to be investment or tax advice nor a recommendation on any specific action to take. Instead, this is an educational based experience to illustrate how saving more and spending less can help you achieve FI. IMPORTANT: The projections or other information generated by the FI Calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Your results may vary with each use and over time. FI Number and Years to FI are based on information you provided and certain assumptions, including market performance assumptions based on hypothetical scenarios using historical index data. Numerous factors make the calculations uncertain, such as the use of assumptions about historical returns and inflation, as well as the data you have provided. Fund fees and other expenses will generally reduce your actual investment returns and are generally not reflected in the hypothetical projections. Results provided are based on the investment returns of a balanced model portfolio at 90% confidence level of estimated future balances and/or estimated future income. The 90% confidence level represents significantly below average market conditions with 10% of all hypothetical scenarios tested performing worse. This means that in 90 out of 100 market scenarios tested a hypothetical portfolio similar to yours performed at least as well as the results shown and 10 out of 100 performed worse than the results shown. Please click to learn more about how we calculate your FI number. 925222.6.0 Roughly how much are you currently spending in each of these categories? Home
Transport
Communication & Entertainment
Health & Wellness
Kids
Education
Pets
Food
Gifts & Donations
Shopping
Other Services & Fees
Save Cancel "Once you have six months [of expenses] saved, you're empowered. You can make more bold choices with your work." — Scott FI/RE with family Lisa and her husband recently moved to North Carolina and hope to start a family soon. They have been aggressively saving for retirement over the past several years, but they anticipate their savings rate will drop as their expenses related to raising a family rise. “As you get older, life becomes more complex. If we start a family, we’ll have more expenses...We want to save for their college, put more money into the house.” — Lisa Ready to take action? Fuel the FI/RE by saving more money to invest Investing involves risk, including risk of loss. The trademarks and service marks appearing herein are the property of their respective owners *With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation. Fidelity does not provide legal or tax advice. Your FI number is an estimate based on certain inputs you enter into the calculator and key assumptions that can help provide guidance on when you may achieve financial independence. There is no guarantee as financial independence will depend on many factors which cannot be predicted and are subject to change in the future such as income, expenses and market performance. This not designed to be investment or tax advice nor a recommendation on any specific action to take. Instead, this is an educational based experience to illustrate how saving more and spending less can help you achieve FI. IMPORTANT: The projections or other information generated by the FI Calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Your results may vary with each use and over time. FI Number and Years to FI are based on information you provided and certain assumptions, including market performance assumptions based on hypothetical scenarios using historical index data. Numerous factors make the calculations uncertain, such as the use of assumptions about historical returns and inflation, as well as the data you have provided. Fund fees and other expenses will generally reduce your actual investment returns and are generally not reflected in the hypothetical projections. Results provided are based on the investment returns of a balanced model portfolio at 90% confidence level of estimated future balances and/or estimated future income. The 90% confidence level represents significantly below average market conditions with 10% of all hypothetical scenarios tested performing worse. This means that in 90 out of 100 market scenarios tested a hypothetical portfolio similar to yours performed at least as well as the results shown and 10 out of 100 performed worse than the results shown. Please click to learn more about how we calculate your FI number. 925222.6.0