Retirement Planner & Financial Independence

Discover if your current savings rate is sufficient to achieve your retirement goals. Calculate your Financial Independence Number, project the real growth of your wealth, and find solutions to close the gap if your plan is tight.

Suggested Profiles:
Conservative (Fixed Income + CDs) Moderate (Fixed Income + REITs) Aggressive (Stocks + International)
Tight Plan
You are on the right track, but you will need to make adjustments to ensure total comfort.
Target Wealth (Freedom Number)
$ 0.00
In future amounts: $ 0.00
Projected Wealth
$ 0.00
In future amounts: $ 0.00
Surplus / Deficit Estimated
$ 0.00
Sustainable Monthly Income
$ 0.00
Wealth Duration
Until 90+ years
Recommended Contribution for Goal
$ 0.00

Wealth Accumulation Projection (Today's Amounts)

Recommended Annual Evolution

Age Accumulated Wealth (Real) Total Annual Contribution (Real) Real Yield per Year Nominal Wealth (Inflated) Target Wealth per Year

What is the Financial Independence Number and the 4% Rule?

The Financial Independence Number (also known as the FIRE Number) represents the total amount of money accumulated that you need to live exclusively off the earnings generated by that capital, without having to work.

The Origin: The 4% Rule (Trinity Study)

The 4% Rule originated from a famous academic study known as the Trinity Study. The researchers tested portfolios composed of stocks and fixed income over several decades of the 20th century and found that, by withdrawing 4% of the initial portfolio value annually (adjusting for inflation in subsequent years), the probability of the wealth lasting at least 30 years without depletion is over 95%.

For example, if your annual cost of living is $60,000 ($5,000 per month):

The Fisher Equation: The Silent Danger of Inflation

In long-term financial simulations, inflation is your greatest enemy. If you project nominal earnings of 10% per year, but the country's inflation rate is 4.5% per year, your real purchasing power does not grow 10%, but rather around 5.26% per year.

The real interest rate ($r_{real}$) is given by the Fisher Equation:

(1 + r_nominal) = (1 + r_real) × (1 + inflation)

This retirement calculator accurately discounts inflation from all projections to ensure that the "Projected Amount" in your retirement actually corresponds to the purchasing power you want to have in the future.

Frequently Asked Questions

Although the 4% rule is world-famous, it was designed based on US market data. In Brazil, due to the history of high inflation volatility and unstable economic cycles, many financial planners recommend adopting slightly more conservative withdrawal rates, such as 3% to 3.5% p.a., to ensure that the wealth survives long cycles of low interest rates or persistent inflation.

Generally not. In the accumulation phase, you can take on more risks (with greater exposure to stocks, ETFs, and international investments) aiming for higher return rates. In the retirement phase (enjoyment), the primary focus shifts to preserving capital and generating recurring cash flow. Therefore, the portfolio is often migrated to safer and less volatile assets (such as public bonds indexed to inflation and real estate investment trusts), which tends to slightly reduce the expected return rate.

The semaphore serves as a quick indicator of your plan's health:

  • Green (Comfortable Plan): Your projected wealth exceeds the necessary target with a safety margin of at least 10% (will survive comfortably).
  • Yellow (Tight Plan): Your projected wealth reaches between 80% and 109% of the target. Indicates that the plan is close to success, but small fluctuations may affect it (recommended to slightly increase contributions or delay retirement by 1 or 2 years).
  • Red (Insufficient Plan): Your projected wealth will be below 80% of the necessary amount. Your money may run out before the estimated term (requires immediate increase in contributions or review of desired income).