Financial Independence
Financial independence (“FI”) is the state of having sufficient personal wealth to live without having to actively work for basic necessities. When you have income generated from assets, investments, or other sources that is enough to cover their living expenses and financial obligations, you become financially independent.
Calculate Your FI Number
Your FI Number is the amount of money you need saved or invested to live off the returns or withdrawals without having to work again.
Monthly Expenses
Your FI Number is ...
$1,500,000.00
Monthly Expenses
$5,000.00
Annualized
x 12
Annual Expenses
$60,000.00
Safe Withdrawal Rate
÷ 4% (x 25)
FI Number
$1,500,000.00
Safe Withdrawal Rate
The Safe Withdrawal Rate (SWR) is the percentage of one's savings that can be annually withdrawn to sustain living expenses without depleting the principal over a set period, often used to calculate the savings needed for financial independence.