1. What is Firecalc?

Firecalc is a retirement calculator that uses historical market data to simulate how your retirement portfolio would have performed in the past. It helps determine the success rate of your retirement plan based on historical market conditions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Historical Simulations — Number of successful retirement scenarios
• Total Periods — Total number of historical periods analyzed

Explanation: The calculator runs your retirement plan through all available historical market data to determine what percentage of those scenarios would have succeeded.

3. Importance of Retirement Planning

Details: Proper retirement planning is crucial for financial security in later years. Using historical data helps account for various market conditions, including bull markets, bear markets, and periods of high inflation.

4. Using the Calculator

Tips: Enter the number of historical years of data available and the total number of periods you want to analyze. Both values must be positive integers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good success rate?
A: Generally, a success rate of 90% or higher is considered good for retirement planning.

Q2: How far back does the historical data go?
A: Firecalc typically uses market data going back to the 1870s, providing over 150 years of historical data.

Q3: Does Firecalc account for inflation?
A: Yes, Firecalc adjusts for inflation using historical CPI data.

Q4: Can I customize my spending plan?
A: Yes, Firecalc allows for various spending models, including constant spending, variable spending, and spending floors/ceilings.

Q5: What investment returns does Firecalc use?
A: Firecalc uses actual historical returns for stocks, bonds, and other asset classes based on the portfolio allocation you specify.