See how long your current savings rate takes to reach financial independence.
| Year | Contributions | Interest | Balance |
|---|---|---|---|
| 1 | $37,000 | +$2,272 | $39,272 |
| 2 | $49,000 | +$5,576 | $54,576 |
| 3 | $61,000 | +$9,986 | $70,986 |
| 4 | $73,000 | +$15,583 | $88,583 |
| 5 | $85,000 | +$22,451 | $107,451 |
| 6 | $97,000 | +$30,684 | $127,684 |
| 7 | $109,000 | +$40,379 | $149,379 |
| 8 | $121,000 | +$51,642 | $172,642 |
| 9 | $133,000 | +$64,588 | $197,588 |
| 10 | $145,000 | +$79,336 | $224,336 |
| 11 | $157,000 | +$96,018 | $253,018 |
| 12 | $169,000 | +$114,774 | $283,774 |
| 13 | $181,000 | +$135,753 | $316,753 |
| 14 | $193,000 | +$159,116 | $352,116 |
| 15 | $205,000 | +$185,035 | $390,035 |
| 16 | $217,000 | +$213,695 | $430,695 |
| 17 | $229,000 | +$245,295 | $474,295 |
| 18 | $241,000 | +$280,047 | $521,047 |
| 19 | $253,000 | +$318,178 | $571,178 |
| 20 | $265,000 | +$359,934 | $624,934 |
| 21 | $277,000 | +$405,575 | $682,575 |
| 22 | $289,000 | +$455,384 | $744,384 |
| 23 | $301,000 | +$509,660 | $810,660 |
| 24 | $313,000 | +$568,728 | $881,728 |
| 25 | $325,000 | +$632,933 | $957,933 |
| 26 | $337,000 | +$702,646 | $1,039,646 |
| 27 | $349,000 | +$778,267 | $1,127,267 |
| 28 | $361,000 | +$860,223 | $1,221,223 |
| 29 | $373,000 | +$948,970 | $1,321,970 |
| 30 | $385,000 | +$1,045,000 | $1,430,000 |
The classic "4% rule" suggests you can safely withdraw 4% of your portfolio each year in retirement. Your retirement number is roughly 25× your annual expenses. Spend $40,000/year? You need $1,000,000. Spend $80,000? $2,000,000.
The single biggest factor in retirement wealth is time. Someone who invests $300/month from age 25 to 35 (then stops) will have more at 65 than someone who invests $300/month from 35 to 65. Compound interest rewards early starters disproportionately.