Firewiz

Retirement and Financial Independence Planning Tools

Parameters

Simulation Mode

Historical uses real past data (deterministic). Monte Carlo randomizes years to create new hypothetical scenarios.

Starting Net Worth ($)

The portfolio value you'll have on day 1 of retirement. Include all investments you'll live off of.

Retirement Length (Years)

How many years your money needs to last. For early retirees: current age to ~95. Traditional retirees often use 30 years. Longer = more conservative.

Asset Allocation

How your money is split between investments. Stocks have higher returns but more volatility. Bonds provide stability. A classic split is 60/40. Uses historical data: Stocks = S&P 500, Bonds = 10-year Treasury, Cash = 3-month T-Bill.

Total: 100%

Higher stocks = more growth potential but bigger crashes

Custom

Stocks (%)

Bonds (%)

Cash (%)

Gold (%)

Glide Path

Gradually shift your allocation over retirement. Start aggressive, end conservative (or vice versa).

Crash Spending Rule

Simulates 'tightening your belt' during a crash. When your portfolio drops below the threshold from its all-time high, spending is reduced. Once the portfolio recovers above the threshold, spending returns to normal. This dramatically improves success rates.

Enable

If Portfolio Drops (%)

Cut Spending (%)

Cut applies while portfolio stays below peak. Spending resumes when recovered.

Social Security / Pension

Include Social Security, pensions, or part-time work income. SS claiming ages typically 62-70. Set end year for temporary income like part-time work.

Annual Benefit ($)

Starts in Year

0 = first year

Ends in Year (optional)

Leave empty for permanent

COLA (inflation adjusted)

Most Social Security benefits include Cost of Living Adjustments (COLA). Pensions typically don't.

Withdrawal Strategy

The classic '4% Rule' method. You withdraw a fixed amount (adjusted for inflation) every year, regardless of market performance. Predictable income, but higher risk of running out.

Withdrawal Rate (%)

The famous '4% rule'. This is the % of your portfolio you spend in year 1, then adjust for inflation. Lower rate = safer but requires more savings. The 4% rule historically has ~95% success over 30 years.

Lower = safer but more savings needed

Fixed Amount ($)

Spend a fixed dollar amount each year, adjusted for inflation. Use this if you have a specific spending target in mind.

Min Annual Net ($)

Max Annual Net ($)

Fees (%)

Expense ratios or advisor fees. 1% fee can reduce success rates significantly.

Taxes (%)

Effective tax rate. The app 'grosses up' your withdrawals to ensure you get your desired net spend.

About Firewiz

This tool runs 500+ simulations using historical annual returns (1928-2023) to determine the probability of your portfolio lasting through retirement.

Initializing simulation...