Results:

Explanation of Chosen Defaults:

• CAGR: 9.66% is the Compound Annual Growth Rate (CAGR) of the S&P 500 in the 30 years spanning Jan 1, 1993 to Dec 31, 2022. [source]
• Inflation: 2.95% is the forward-looking 10-year inflation rate forecast in Q4 of 2022 (INFCP110YR). [source]
• Safe Withdrawal Rate: 3% is somewhere between the classical "4% rule" for a 30-year retirement (Trinity Study), and more conservative estimates like The 2.7% Rule for Retirement Spending and Fuel for the F.I.R.E.: Updating the 4% rule for early retirees.
• Effective Tax Rate: 11.68% is the 2023 effective single individual rate on $75,000 gross income.

Simplifying Assumptions:

• All money is invested at the specified CAGR.
• After-tax income minus annual spend remains constant. i.e. getting an $X raise is perfectly cancelled out by spending $X more due to e.g. inflation in the cost of goods and services.
• Assumes ongoing and uninterrupted income (typically from employment).
• Social security retirement benefits (if any) are not considered.

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