# FU Money Calculator: Are you ready to say goodbye to your employer?

“FU Money” represents the amount required for a person to stop being employed. She is then free to follow her passion and wait for it to generate an income without having to worry about expenses for at least a few years. Or the corpus could be large enough to generate an inflation-protected income for the rest of her life.

For those who may not know, FU is way of, er .. saying “goodbye” to your employer. U the FU stands for You and the F stands for one of the most popular expletives 🙂

Of course, every retirement calculator is an FU Money calculator. They tell you the corpus required. I have extended this a bit to offer two outputs:

1: If you were to retire today, how long will your current holdings last?

For example, if your current age is 40 and the answer to this question is:

10 years –> You can consider quit being employed and start a new venture on your own. You can wait for it gain traction in a few years without stress.

30 years —> Then the corpus could last you for next 25-30 years. You are almost financially free. If you hang in there for just a little while, this number could become a lot more robust.

2: If you were to retire as intended (normal retirement, say age 60), and made no further investments towards retirement, how long the money will last after (normal) retirement.

Suppose your age is 40, normal retirement is 60 and the answer to this question is:

10 years –> You will be financially independent in retirement for only 60+10 = 70 years. Not good enough. You need to continue investing for retirement.

25 years –> Then you will be financial independent for 60+ 25 ~ up to age 85. Pretty good. This means that  if your current holding (fixed income, equity) grow as expected, it will produce a coprus that is good enough until age 85.

You can,

either continue investing for retirement with an aim to retire earlier or

lower the investment amount* or

even take a chance and stop investing for retirement*

I hope that gives you a picture of what the FU Money Calculator does.

Here is a screentshot:

The last two outputs are the ones discussed above.

An android app based on this is in the works. Will publish that later.

As always, I am open to feedback. Let me know how this can be modified. If you are using my mutual fund goal tracker, you will realise that these calculations are already there 🙂 They are also part of the Monthly Financial Tracker.

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## 13 thoughts on “FU Money Calculator: Are you ready to say goodbye to your employer?”

1. satish says:

Thanks pattu for another awesome calculator..This one was at the right time for me..On the web calculator, “Annual increase in monthly investment” is fixed at 10% which I think must be editable as it is in spreadsheet..Can you pls check

1. freefincal says:

Thank you. Conversion issue. I will check and get back in a bit.

2. Chandu B S says:

Puttu Sir, Not sure if I have overseen – else please add
1) Income that I can generate till my retirement age , example salary
2) Fixed income that I am getting ( with inflation growth ) , example rent.

3. George Mathai says:

Yes, I have passive income streams from rentals, dividends and other Investments which greatly help in increasing number of years of financial independence.

The rental income will grow at at least 5%. The others not so much (have taken growth for these as 0%).

4. Nikhil says:

Hi Pattu Sir, if I change the Inflation Number from 8% to 7%, the value in the last row (if you were to retire as intended, you will be financially independent upto age ___) is throwing an error. Can you please check the same?

1. freefincal says:

I am not able to reproduce that error. Seem okay to me.

5. John Galt says:

It would be great if you could integrate these outputs in the “Even Lower Stress Retirement Calculator”

1. freefincal says:

Just one more formula to add. you can DIY from this sheet.

6. B M Joshi says:

Very useful article. One addition can be made in your every calculator regarding receipt of pension. If some one is receiving pension than all retirement and goal planner calulators are of not much use for them.

7. ashley abreu says:

If I change the value in ‘Curent annual expenses that will persist when you retire’ from 400000 to 2000000 then the value of ‘If you were to retire today the current corpus will last until age’ does not change much .Values recorded below . How would that be correct.

Result with 400000

Year of Birth 1984
Year of normal retirement 2033
Life expectancy 80
Curent annual expenses that will persist when you retire 400000
Post-tax rate of return (conservative) expected AFTER retirement 9%
Value of retirement corpus from fixed income sources 500,000
Average fixed income rate of return expected 8%
When you retire the fixed income corpus will aproximately grow to 1,468,597
Value of equity (stocks+ mfs) corpus 600,000
Average equity rate of return expected 12%
When your retire the current mf corpus will grow to 2,932,267
Years to normal retirement 14
Years in normal retirement 33
Annual expenses when you retire (retirement income in 1st year of retirement) 1,266,195
Corpus required 36,194,436
If you were to retire today the current corpus will last until age 35.8
If you were to retire as intended in 2033 you will be financially independent up to age 50.5

Result with 2000000

Year of Birth 1984
Year of normal retirement 2033
Life expectancy 80
Curent annual expenses that will persist when you retire 2000000
Post-tax rate of return (conservative) expected AFTER retirement 9%
Value of retirement corpus from fixed income sources 500,000
Average fixed income rate of return expected 8%
When you retire the fixed income corpus will aproximately grow to 1,468,597
Value of equity (stocks+ mfs) corpus 600,000
Average equity rate of return expected 12%
When your retire the current mf corpus will grow to 2,932,267
Years to normal retirement 14
Years in normal retirement 33
Annual expenses when you retire (retirement income in 1st year of retirement) 6,330,975
Corpus required 180,972,178
If you were to retire today the current corpus will last until age 33.5
If you were to retire as intended in 2033 you will be financially independent up to age 47.7