Economic Freedom Analysis
The Economic Freedom Analysis calculator is your wake up call. It is designed to provide you with a comprehensive view of your financial future. Whether you’re on the path to financial independence or planning for a comfortable retirement, this tool lets you simulate different scenarios and assess the hidden impacts of inflation.
How to Use This Tool:
Enter Your Personal Investment Information:
Personal Investment Account(s):
Input the current total amount in your personal investment accounts. This includes taxable brokerage accounts, savings accounts, etc.
Personal Investment Account(s):
Input the current total amount in your personal investment accounts. This includes taxable brokerage accounts, savings accounts, etc.
Personal Investment Account Growth Rate:
Estimate the annual growth rate of your personal investments. A typical growth rate is around 7% if you’re investing in a diversified portfolio.
Enter Your Retirement Plan Details:
Retirement Plan Account(s):
Input the current total balance of your retirement accounts, such as 401(k), IRA, or other pension plans.
Retirement Savings Contributions per Year:
Enter the amount you intend to contribute to your retirement accounts annually.
Retirement Plan Growth Rate:
Estimate the annual growth rate of your retirement investments. Like personal investments, a typical rate is around 7%.
Set Your Life and Savings Milestones:
Current Age:
Input your current age. This helps the calculator project your financial future over your lifetime.
Saving To Age:
Choose the age up to which you plan to actively save and invest. This is typically your desired retirement age.
Retirement Age:
Input the age at which you plan to retire and start withdrawing from your retirement accounts.
Input Your Financial Assumptions:
Annual Expenses:
Estimate your annual expenses, which represent the lifestyle you plan to maintain throughout retirement. This is key to determining how long your savings will last.
Inflation Rate:
Input the expected inflation rate to factor in the changing value of money over time. A standard estimate is around 2-4%.
Analyze Your Financial Future:
Once all the inputs are set, the tool will generate a projection of your financial future, shown in both numerical and graphical formats.
The graph illustrates the growth of your personal investments and retirement savings over time, allowing you to see how your wealth accumulates and when you might reach your "economic freedom" point.
It also provides a visual representation of when your retirement savings might start depleting based on your projected expenses, helping you plan more effectively.
Economic Freedom Analysis
The Economic Freedom Analysis calculator is designed to show you your financial future (whether you like it or not).
Why This Matters:
The Economic Freedom Analysis tool allows you to understand the trajectory of your savings and investments, empowering you to make adjustments as needed. It also quantifies the impact of inflation and how it impacts your overall portfolio. Financial freedom is not a one-size-fits-all journey. This tool helps you map out your unique path and take proactive steps toward achieving the economic future you desire.
