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Quote from: erwintwr on June 10, 2015, 12:58:51 pm

*sulks at salary - i will be there in a few years i hope*

i have divided the difference between current age and 55 in 4 parts, thus resulting in (55-40)/4 = 3.8 years per result. you are welcome to modify the constants(analyze after year)  to 4, 5, 6 and 7 to see a more accurate result for those years. (year 6 seems to be the extreme limit with 1K surplus)

not sure if i follow your last statement? Inputting your values shows that RA/TFSA/Equity is higher? (112k surplus vs 67k maxing equity only after 7.5 years)
excel will highlight the bigger value green

I rounded down a little 

Here's the query:

Results(FI After 15 years)            
Yearly Salary   "Max TFSA then Equity
(no RA)"   Max Equity only   Max TFSA then RA then Equity   Max RA then TFSA then Equity
RA (15%)   R 0,00   R 0,00   R 359 365,37   R 483 959,65
TFSA   R 152 760,08   R 12 603,98   R 153 099,74   R 147 385,83
Equity   R 5 952 262,70   R 6 211 969,35   R 5 380 981,96   R 5 280 140,85
Required   R 1 217 552,98   R 1 217 552,98   R 1 217 552,98   R 1 217 552,98
Total surplus (after tax)   R 4 498 042,92   R 4 597 112,03   R 4 206 445,16   R 4 185 992,94
"Total yearly surplus
(Inflation adjusted)"   R 1 746 296,55   R 1 784 758,62   R 1 633 088,17   R 1 625 147,90

As you can see, the total surplus is highest on equity only. I would have thought it would be highest on RA, TFSA then equity but it's lowest there.

*edit* - are you still running on your original inputs(1mil 50% invested with 5mil in equities)? - My results looks much less than yours :/

not a major difference between them, but in 15 years you will be 55 - thus calculation is quite easy.

@55 years

Equity only will give 47.5mil plus the 0.1mil from the TFSA - possible to draw 3mil, and only taxed on 800k of that(-90k) = get 3Mil out

max TFSA then RA then equity will give 39.6mil Equity + 2.3Mil TFSA + 9.7Mil RA = 51.7 Mil. Possible to draw 3.1Mil, but you will be taxed double(-188k) = 2.9Mil out.

Row 56 on the worksheets gives the salaries ( and J52 the tax that is paid on that salary)

remember that equities is taxed on a third of the capital gains 3mil draw = 2.5mil capital gain = 805k tax - and by that stage 805k is in the 26% bracket with an even larger rebate.

Update to version 3.2
*Tax tables was "ahead" with a year - Corrected
*Improved the Salary prediction required at Financial Independence - should now be much more accurate(current expenses is inflation adjusted with buffer added, then reverse tax is applied to determine the before tax salary)
*Added a Spending buffer which will be added to your salary after FI (use full if you want to go on that yearly travel trip :p

Update to version 3.4
*Adjusted internal calculations ,based on paying current loans (eg home /car) - expenses that wont remain into financial independence for long - configurable(change to zero if you plan to keep paying off your home/car up to 95 )
*improved the results screen ,showing more details as to what is happening, including your salary at FI.

only challenges that still remains :
* Drawing a salary after FI is calculated, mostly, based on drawing your tax every month. this wont be the case, as you will draw a once off SARS amount after tax claims are due. (thus additional savings will happen especially if you pay large tax amounts, since your tax owed will grow during the year in your portfolio)

* Homeloan and car expenses is removed after the payment period is complete - not sure how to tackle the scenario where you want to continue wasting money into the latest and fastest clown-mobiles every few years. for now, please configure the buffer to allow for any expenses that you will keep/add after FI.

Excellent, it says I'm good to go. What the hell am I still doing in the office then? 

that mystery eludes me - - maybe you are sponsoring the next nkandla?

if memory serves you are saving up for a sail boat trip around the world?

Quote from: erwintwr on June 22, 2015, 08:41:54 am

if memory serves you are saving up for a sail boat trip around the world?

Yes, I definitely prefer reason 2! I'll either need to work a few more years, or get a smaller boat...


Not mine, yet...

yup - definitely a dream come true that!

Makes me wonder if i should add a once off bonus at FI as well :/. What other scenarios will require you to have a big lump expense on retirement?

Update to version 3.6 (7/7/2015)
* fixed a bug that slipped in when moving some of the reference tables around (affected TFSA contributions)
* adjusted tax table inflation averages a little.


Can someone maybe recommend a source or two of "real" inflation? i know it is a highly contested topic, but i will rather have the calculator default to a more safe value if needed.
the current 6% as reported does not seem to be enough

in any event, you can edit the inflation on the inputs/constants (make it a % or two higher), as per your own feeling. planning for a higher inflation will help with generating a sufficient investment buffer/surplus as well.

Can someone maybe recommend a source or two of "real" inflation? i know it is a highly contested topic, but i will rather have the calculator default to a more safe value if needed.
the current 6% as reported does not seem to be enough

CPI history is on the reserve bank website

What a great piece of work erwintr. Thanks very much for sharing.