Post-Retirement Calculator: Will My Money Survive Early Retirement? Visualizing Longevity Risk

Posted In: Financial Independence | Money

One of the key issues with retiring is the question of outliving your money. This is also known as Longevity Risk and is especially important if you want to retire early, since your retirement could be 50 years long (or more). This interactive post-retirement calculation and visualization looks at the question of whether your retirement savings can last long enough to support your retirement spending and combines it with average US life expectancy values to get a fuller picture of the likelihood of running out of money before you die.

It helps to answer the question: If I start out with \$X dollars at the beginning of my retirement, will I run out of money before I die?

Should You Invest (Or Wait) When The Stock Market Is At An All-Time-High?

Posted In: Financial Independence | Money

The stock market has been on a bull run (hitting numerous all time highs) for the last 8+ years and it’s not clear when it will end. Whenever there’s been an extended bull run, one question that comes to mind “Should I invest in the market now, or wait until a pullback?” The question comes about because of fear and loss aversion: fear that the market will drop right after they invest and the observation that people want to avoid losses more than they value gains. However, historically, the correct answer, at least over the last 68 years, has been to invest and not to try to time the market.

This was also demonstrated in the Market Timing Game; that people are pretty bad at predicting the direction of the markets and given the upward trend of the market, it’s simpler and more likely than not, better to just stay invested in the market. The corollary to this is that when you have additional money to invest (e.g. from regular savings from your paycheck or a one-time event like the sale of a house), it makes sense to invest the money and not worry about whether the market is at a high or low point. Some graphs that look at the distribution of returns when the market is at an all time high (ATH) can help answer this question of whether you expect to see worse returns than investing at other times.
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Shall We Play A (Market Timing) Game?

Posted In: Financial Independence | Money

The Market Timing Game simulation is premised on the idea that buying-and-holding index investing and index funds are a no-brainer investment strategy and market timing (i.e. trying to predict market direction and trading accordingly) is a less than optimal strategy. The saying goes “Time in the market not timing the market”. In this simulation, you are given a 3-year market period from sometime in history (between 1950 and 2018) or you can run in Monte Carlo mode (which picks randomly from daily returns in this period) and you start fully invested in the market and can trade out of (and into) the market if you feel like the market will fall (or rise). The goal is to see if you can beat the market index returns.
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¿Cuánto tardarías en contar hasta un millón?

Posted In: Counting | Fun | Math

Disculpe(n) mi pobre español. Utilicé google translate para escribir esto en español.
Aquí está la calculadora que calculará cuánto tiempo lleva contar un millón (o números mayores) en español.
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Financial Freedom Calculator (Multi-Period FIRE Visualization)

Posted In: Financial Independence

This is an update to the Financial Freedom Calculator. That one still works well, but this version adds the ability to add multiple savings amounts representing different periods in time. This allows you to visualize your progress towards financial freedom rather than just giving you the latest value for your freedom date. It does so by showing different colors for the different periods (you specify them by adding different savings amounts and names). It should be fairly obvious looking at the calculator, but if you had a total of 25000 in savings in 2016 and 70000 in 2017, then your calculator is colored in two sections representing the freedom days you had achieved in the two different years.
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Interactive Dot Illusion (Individual Linear Motion Yields Circular Motion)

Posted In: Fun

This post doesn’t really involve data, but I was just messing around with animation and the canvas in Javascript and decided to make this. It’s a fun little interactive web animation that makes aggregate circular motion from a bunch of dots moving in straight lines. There are no real instructions except to mess with the controls and see what it does to the animation (i.e. change the number of dots, the speed slider, the dot colors, and show the dot paths).
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