The FIRE tab is an automatic FIRE calculator, predicting your pathway to financial independence and retiring early based on your live Net worth and spending habits.
Manual User Cells: • Year of DOB • Total Yearly Super contribution • Estimated inflation rate (%) • Estimated Withdrawal Rate (%) • Preservation Age (date you can access retirement funds if locked away) • Yearly spend at current lifestyle
The FIRE tab works on optimising growth on 2 fronts - personal investments that you can access at anytime as well assets in your Retirement funds that usually provide tax benefits. For the purposes of this explanation these terms are defined: • Personal portfolio - Your personally invested assets that you can access at any age. • Retirement funds - Retirement funds locked away until retirement (ie. Super, IRA, Pension) • Preservation Age - The age at which you're legally able to tap into your retirement funds.
The path to FIRE is split into 3 stages: Step 1: Accumulation phase - You're saving and investing money in both your personal portfolio whilst also contributing towards your retirement fund. Step 2: Begin FIRE! You're retired and 2a. Independently living off income from your personal portfolio before your preservation age, whilst 2b. Contributing to your retirement fund and allowing it to grow. These contributions come from your personal portfolio FIRE income. Step 3: Retirement Fund Phase - Exhaustion of your personal portfolio by the time you hit your preservation age and therefore from here onwards you're living on your retirement funds.
This tab therefore uses your net worth & retirement balance to calculate the sweet spot between steps 1, 2 & 3 to find out when you can FIRE. The sheet will give you a target date and Net Worth amount to achieve FIRE.