So, what about cFIREsim? Is it legit and will it help you better prepare yourself (and your finances) for retirement? Here’s my cFIREsim review…
What is cFIREsim?
Before delving into whether or not it is a useful tool you should know what cFIREsim is. First, cFIREsim stands for Crowdsourced Financial Independence and Early Retirement (FIRE) Simulator. The calculator is free and available to everyone who would like to use it. The calculator uses inflation data from 1871 until now and determines how your personal retirement portfolio would perform. What makes cFIREsim so great for its users is that it goes beyond the basics and shows you various scenarios on how your portfolio may perform.
A cFIREsim Review
A free retirement calculator sounds great but is cFIREsim really all it is cracked up to be?
Easy to use?
When you visit the main site (www.cfiresim.com) you’ll notice that the website is pretty bare bones. In fact, there aren’t even any advertisements on the webpage. You are immediately prompted to answer some questions about your current retirement plan.
Entering the information in the calculator is fairly easy, especially if you’ve been saving for retirement. Once you’ve entered your information you hit the button towards the bottom of the page that says “run simulation.”
Once you do that another screen pops up with a graph (like the one shown below). This graph shows what your financial future looks like (as you entered it), based on the performance of the stock market and retirement portfolios through history. If you’re not keen on reading financial data, don’t worry. cFIREsim breaks it down for you further below the graph in numerical charts.
To a beginner cFIREsim could be a little intimidating and even difficult to decipher. Many individuals may have difficulty trying to read and understand the information provided by this calculator.
However, cFIREsim does offer some information that many other retirement calculators do not. For instance, cFIREsim gives you data all the way back to 1871 so that you can view the trends and changes over the years. The program will also pull up multiple simulations so that you can compare based on how much money you’d like to take out each year.
Who Can cFIREsim Help?
If you’re looking to try a retirement calculator out, check out cFIREsim. While I wouldn’t say it is the best retirement calculator out there, it is free and it can help you get an idea of what you should do to start planning for retirement. It can also help those who are planning for retirement but may need to save more before they do.
Do you have a retirement calculator you’d recommend? Let us know! We’ll review it.
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