🔥 Financial Independence, Retire Early

Your FIRE Path Planner

Enter your financials, and let Monte Carlo simulation reveal your future—replacing guesswork with probability to drive your path to financial freedom.

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Probability of Asset Distribution

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Configure parameters on the left and run simulation to view your future.

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What is Monte Carlo Simulation?

🧠 Core Concept

  • No Straight Lines: The market never grows by a fixed 8% annually. It is highly volatile and unpredictable.
  • Parallel Universes: By running thousands of random path simulations, we map out every possible direction your wealth could take.
  • Probability Over Guesses: Instead of a single final number, we provide confidence intervals showing what is highly likely.

⚙️ Engine Mechanics

  • Risk/Return Binding: Built-in portfolios enforce historical stock/bond return & volatility metrics, preventing naive inputs with zero downside.
  • Dynamic Lifestyle: Crossing the FIRE target line automatically triggers "Retirement Phase"—halting savings and initiating cost-of-living withdrawals.
  • Sequence of Return Risk: Stress tests accurately target crashes hitting immediately after you retire, mimicking true vulnerability.

📊 Interpreting Charts

  • Median Curve (P50): The most likely standard outcome (50% probability above, 50% below).
  • Probability Bands: The darkest band covers the highly-likely core outcomes, while the lighter bands show extreme luck and deep misfortune borders.
  • FIRE Target Line: Based on the 4% Rule (25× annual expenses) and shifting upwards to account for ongoing inflation.

⚠️ Planning Advice

  • Avoid Prophecy Trap: Models are based on statistical historical boundaries but cannot predict real-world Black Swan events.
  • Defend the Baseline: Do not obsess over high-end potential. Ensure you can survive the "Worst Case (P5)" and extreme stress test scenarios.
  • Calibrate Annually: As you age and your assets compound, re-run this simulation yearly to recalibrate your trajectory.