How To Use The Retirement Calculator (F.I.R.E.)

To get started, imagine how you want to retire in the future.

• What would be your ideal lifestyle for that? In that lifestyle, what is your expected monthly expense?
• For the sake of example, what's your current total monthly expense? Imagine that's how what it will be in your retirement. For example, is it 20,000 pesos? See below.

At what age do you want to retire? For example, let us say I'm 28 years old, and I want to retire when I turn 45.

And the average global life expectancy this year (2024) is around 73 years. Let's say that I'd get to that age. So, I get to enjoy 28 years of retirement.

The safe withdrawal rate is a crucial concept in retirement planning. It represents the percentage of a retiree’s investment portfolio that can be withdrawn annually, adjusted for inflation, without significantly increasing the risk of running out of money during their retirement years (True Tamplin, 2023).

Personally, I'd put around 3-5% for the withdrawal rate because that is also the common interest/return rate from high-interest banks and stocks. To be specific, here are some return rate I observed:

• High-interest banks: 2-5%
• Dividend Payouts: 2-13% (based on my experience)

So, let us put 4% on both for this example.

Then, click calculate.

Let us get out of a life of paycheck-to-paycheck someday and level up. This is what Mattia Group is about. We help people level up in different areas of life together.