Tool 05 · Freedom

Your financial independence number

Financial independence isn't about not working — it's about work becoming optional. The classic rule: a corpus of ~25× your annual spending can sustain you indefinitely at a ~4% withdrawal rate.

Your numbers
Your whole household's yearly spending, today.
25× ≈ 4% withdrawal. Use 30–33× for early retirement (longer horizon, more caution).
FI number in today's money
FI number at age 50
Required monthly SIP
What that buys you

Reading the result honestly

The fine print on freedom
It's a compass, not a GPS

A 20-year projection is directionally useful, precisely wrong

Returns, inflation, and your own spending will all differ from today's guesses. Recompute yearly. The point is to know whether you're roughly on a 15-year path or a 40-year one.

The lever that matters

Your savings rate beats your return rate

Going from saving 15% to 30% of income shortens the path far more reliably than chasing 2% extra return — and it simultaneously lowers the expenses your corpus must cover. It's the only variable fully under your control.

Sequence risk

The first years after FI are the dangerous ones

A crash early in retirement, while you're withdrawing, hurts far more than the same crash later. That's why early retirees use 30×+ and keep 2–3 years of expenses in debt — so they never sell equity in a drawdown.

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