Early Retirement Calculator

This calculator combines Bitcoin and traditional investments to project portfolio growth until and through retirement. It uses customizable Bitcoin price models, accounts for inflation, and includes various income sources like Social Security and 401k. The strategy typically involves accumulating Bitcoin during working years and implementing take-profit strategies near retirement.

Three models are available:

• Power Law Growth: Based on Bitcoin's historical price patterns and adoption cycles
• Manual Growth Rate: User-defined annual growth rate for custom scenarios
• Decaying Growth Rate: Starts with high growth that gradually reduces to a stable long-term rate

Nominal values show actual future dollar amounts in your accounts. Real values show today's purchasing power after adjusting for inflation.

Example: "$2M nominal ($1M real)" means your $2 million in the future will buy what $1 million buys today. Real values help you understand true wealth for retirement planning decisions.

Typical ranges based on historical data:

• While Working: 6-8% (balanced portfolio, S&P 500 historical average ~7%)
• After Retirement: 4-6% (more conservative, bond-heavy allocation)
• Inflation: 2-3% (US historical average)

Higher rates possible in tech/growth sectors, but use conservative estimates for retirement planning.

The take-profit strategy helps secure gains during Bitcoin bull markets:

• Take Profit Rate: Percentage of holdings to sell (e.g., 20% means selling 1/5 of your Bitcoin)
• Start Year: When to begin taking profits (typically 5-10 years before retirement)
• Strategy: Reduces risk by converting some Bitcoin gains to stable traditional investments

Yes! Many retirees reduce costs significantly by living abroad. Popular destinations with local wage context:

• Mexico:
  • Monthly living costs: $1,500-$3,000
  • Min wage: ~$250/month
  • Doctor's salary: $1,500-$3,500/month
• Portugal:
  • Monthly living costs: $2,000-$3,500
  • Min wage: ~$850/month
  • Doctor's salary: $3,000-$5,000/month
• Thailand:
  • Monthly living costs: $1,500-$3,000
  • Min wage: ~$300/month
  • Doctor's salary: $2,000-$4,000/month
• Malaysia:
  • Monthly living costs: $1,700-$3,200
  • Min wage: ~$300/month
  • Doctor's salary: $2,500-$4,500/month
• Panama:
  • Monthly living costs: $2,000-$3,500
  • Min wage: ~$450/month
  • Doctor's salary: $2,500-$4,500/month
• USA Comparison: $4,000-$8,000/month depending on location

Useful Resources for International Living:

• Numbeo - Detailed cost of living comparisons
• Expatistan - Real-time cost of living index
• International Living - Comprehensive guides and retirement indices
• Escape Artist - Resources for living, working, and investing abroad

Research visa requirements, healthcare, and tax implications for your chosen destination.

Try these strategies to improve your retirement outlook:

• Increase Bitcoin allocation: Add monthly Bitcoin purchases
• Plan post-retirement income: Consulting, part-time work, or passive income
• Reduce living costs: Consider retiring abroad or downsizing
• Delay retirement: Even 2-3 extra years can significantly improve outcomes
• Increase savings rate: Higher 401k contributions or salary increases

Always consult with a financial advisor for personalized strategies.

These are educational projections based on your inputs and historical data. Past performance doesn't guarantee future results.

Key uncertainties:

• Bitcoin's future price is highly speculative
• Market returns vary significantly over time
• Inflation rates can change
• Personal circumstances evolve

Use this tool for planning and scenario testing, not as financial advice. Consult professionals for investment decisions.

401k contributions and employer matching details:

• 401k Contribution: Maximum allowed is $23,000 (2024). Typical range is 10-15% of salary
• Employer Match: Common ranges are 3-6% of salary. Example: A 100% match up to 4% means if you contribute 4%, your employer adds another 4%
• Max Match Salary: The salary cap for employer matching, often 100% but some companies limit it (e.g., 75% means matching only applies to first 75% of your salary)

Always contribute enough to get the full employer match - it's free money!

Social Security benefit options:

• Start Age: Can begin at 62 (reduced benefits), Full Retirement Age (66-67), or delay until 70 for maximum benefits
• Monthly Benefit: Get your personal estimate at SSA's Benefit Calculator
• COLA (Cost-of-Living Adjustment): Annual increases to benefits based on inflation. The Social Security Administration adjusts benefits annually using the Consumer Price Index. Historical COLA increases have averaged around 2% per year.

Delaying Social Security past full retirement age increases benefits by about 8% per year until age 70. Once you start receiving benefits, they increase annually with COLA adjustments to maintain purchasing power.

Other assets that will be converted to cash at retirement and added to your traditional investment portfolio:

• Primary home sale proceeds
• Secondary property sales
• Vehicle sales
• Other valuable assets

These are added to your traditional investment portfolio in your retirement year, providing additional funds for your retirement.

Yes! The calculator supports semi-retirement modeling through:

• Other Income After Retirement: Add consulting work, part-time employment, or passive income streams
• Years of Income: Specify how long this additional income will last
• Gradual Bitcoin Accumulation: Continue buying Bitcoin even after partial retirement if you have ongoing income

This approach can significantly reduce portfolio withdrawal requirements and extend your retirement funds.

Yes! The calculator supports strategies with gradual Bitcoin acquisitions until retirement:

• Set monthly Bitcoin purchases alongside traditional 401k contributions
• Bitcoin accumulation continues throughout your working years
• Combine with take-profit strategies as you approach retirement
• Balance Bitcoin growth potential with traditional investment stability

This strategy allows you to benefit from Bitcoin's potential growth while maintaining diversified retirement planning.