Early Retirement Update – June 2022

This is my latest retirement estimate for June 2022, based on all income and expenses until the end of May 2022. Unfortunately, the peak for the last six months was in December of last year and January 2022, and since then it’s been a steady drop in net worth along with some increased expenses.

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

  1. The first way will actually be with a simple Excel calculator that I made. I’ll plug in my 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 calculate 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 the 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:

Both of these estimates have gone up by about a year, with the major contribution being the mad fientist lab calculation. Since I’m using my actual spending there, it will fluctuate more from the increased spending over this year. Paying a mortgage is a lot more expensive than my old rent payments! The good news here is that based on a fixed spending estimate, the numbers have not gone up too much. I do think it’s important to mix several types of estimates though, as that keeps things more realistic with the average.

Retirement estimation if I never save another dollar:

I’m glad to see that I do have a decrease year over year in this estimation, thanks to my net worth being higher than June of last year, even with the big drop over the past few months. This also takes into account of a higher overall spending target in retirement as well.

Photo by Vitalii Mazur on Unsplash

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