Here is my retirement estimate for July 2019, based on June’s net worth progress. I had a great month again, boosting my net worth past $175,000. Most of those gains were in my retirement accounts, so hopefully, they will be permanent boosts to my overall cash pile. My guess is that the estimates here are going to be about the same as spending increased. They’ll probably cancel each other out and I’ll end up with around the same numbers I had in June. So let’s dive into those numbers and see if I’m right!
A reminder of the three ways I will tracking my progress:
- 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?
- The second way I’ll be calculating this is through an equation and the help of Wolfram Alpha.
- 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:
It looks like both estimates stayed about the same, with the 4% growth estimate having a slight jump up to 16 years this month. For some reason, the Mad Fientist calculator really jumped up even with just a small increase in spending! Looking at the 7% growth, the average stayed the same at just under 12 years until retirement.
Retirement estimation if I never save another dollar:
Down to 33 years here! I’m hoping that this will keep dropping but I know the market has a lot of influence on this number now. Even with a positive savings rate, my net worth decreases can be big if the market has a bad month.