Early Retirement Tracker – April 2018

There’s not too much to report once again this month, with my net worth remaining flat. Probably the only variable that has really changed is the fact that I’ve increased my savings rate by bumping up my 401k contribution rate by another percent. I still feel like money has been accumulating in my checking account, and I’d rather be putting that excess into the market where it will hopefully be earning money.  When money is just sitting in my checking account I know it won’t be doing anything!

A reminder of the three ways I will tracking my progress:

  1. The first way will actually be with a simple excel calculator that I made. I’ll plug in my current monthly expenses, savings rate, and net worth. And the calculator will say just how long I have until retirement. Maybe it will say that I can retire tomorrow?
  2. The second way I’ll be calculating this is through an equation and the help of Wolfram Alpha.
  3. The third and final way I’ll be calculating my early retirement date is with the help of Mad Fientist Laboratory. I’ll input expenses, savings, and net worth and let his calculations do the rest of the work.

Retirement estimation based on 4% market growth:

Retirement estimation based on 7% market growth:

The increased savings rate really has a solid affect on my retirement date when using both the excel calculation and the compound interest formula. Mad fientist must be a little more conservative, I’m guessing it may take an average of my previous savings rates instead. I do feel that strictly using the newest rate is the most accurate though, because I don’t plan on dropping that rate down.

Even though it’s a small bump in savings, that is multiplied out across the whole year and then again across the many years of savings. I’ll look to continue optimizing that rate until I’m able to max out my 401k for the year. Roth IRA and HSA contributions are already at their max, so the only thing after this would be creating a taxable account.

Retirement estimation if I never save another dollar:

The numbers here are similar to February, not too much to report here. The higher my net worth is, the more this will change. I don’t expect to see any significant changes in this area when the market is struggling.

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