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Pretirement - A financial independence app that converts $ to time

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  • Pretirement - A financial independence app that converts $ to time

    Hi all. I'm looking for feedback from on a mobile app I recently launched called Pretirement. It's a high-level financial independence calculator with the unique primary function of converting spending decisions into days/weeks/years of your life. If you spend $100 now, how much does that change your future financial independence later? What about a music subscription for $10/month?

    Keep the app updated with your current earning assets and baseline savings rates, and whenever you are considering spending or saving more or less money, find out what it really costs.

    Get it for iOS or Android here:

    https://pretirementfi.com/

    Thanks in advance for any feedback you might have!

  • #2
    I like this idea.  Here is what I learned from Jacob Lund Fisker:

    Each dollar of monthly expense increases our required nest egg by 401 times.
    This shines light on the true costs of recurring expenses.
    For example a $20 monthly expense doesn’t seem like much to a $15/hour
    worker but it is. It would require an asset based income of $8,020 ($20 x 401) or 4 months of work.
    A $40 cable bill becomes a $16,040 asset equivalent.
    In other words to support that cable bill without working you will need
    an additional $16k in your investment account.  Stunning isn’t it!
    I have never seen expenses presented this way but it is accurate.  My $100 per month IPhone is costing me
    $40,100.  Wow, I like it – but that much?

    http://wealthydoc.com/early-retirement-extreme.html

    Comment


    • #3
      I like it! I only have to work for two more months. Woohoo!

      Now, I need a time machine app to give 90 days notice 30 days ago.

      Comment


      • #4
        I really like it and it is nice to remind you where you are in terms of net worth, and what small (or large) changes to your nest egg or to expenses will do to your eventual goal of FI.  Nice tool.

        Comment


        • #5
          I am free!

          Comment


          • #6
            This is on the Android version.

            To enter age I would have had to swipe hundreds of months back in time, very annoying. A drop down version would be better.

            I dont get the assumptions, and maybe it was due to the age issues, but I entered in a saving amount equal to spending and it just says free now, which clearly isnt the case in your first year.

            Comment


            • #7
              I really like the concept of this app.  Please take the remainder thoughts as advice/thoughts, not a negative critique of the idea.

              a. Needs to be more robust/customizable from an input standpoint.

              b. FI has a different meaning to people yet the app is based upon 'How much will I spend in retirement' and the 'withdraw rate'.  FI for me maybe $1 million in retirement accounts, whereas someone with the same annual retirement income/withdraw rate may consider FI to be $10 million (a considerable cushion).

              c. Some 'probability' based FI.

              d. Understanding/question expenses related to FI.  For example, it says will be FI at age 56 which is cool, but now I need to go back and 're-estimate' my retirement spending because now I have 9 odd years to pay for healthcare (that I didn't expect) until Medicare kicks in.

              e. If this could integrate into other existing apps/software would be intriguing imo.  The ability to draw information from other apps/software on assets that can be excluding/included.  For example, a 529 would not necessarily be included, but a taxable investment account would be.

              Good luck and look forward to seeing additional improvements in this app.

              Comment


              • #8
                The problem with this sort of comparison is if you carry it out to ridiculous conclusions it doesn't make sense. For example, you could say you need $1 Million to pay your $3000/month mortgage. Or, you could just pay the mortgage off for $300K (or whatever is left on it.) Bam- you need $700K less. Same with an 80 year old who likes his country club membership. You don't need 25 times the membership to support that for the next 5 or 10 years until you die. You could just, you know, pay 5 times the annual fee. Also, it ignores guaranteed income. You don't need to use a 3% or 4% withdrawal rule to pay for something when you're planning to buy a 7% SPIA.

                So, it's good to get people saving, but if you let it rule your life it'll turn you into the richest guy in the graveyard. Money is made to be spent. Maybe not now, but eventually. I save now in order to spend more later.
                Helping those who wear the white coat get a fair shake on Wall Street since 2011

                Comment


                • #9


                  Hi all. I’m looking for feedback from on a mobile app I recently launched called Pretirement.
                  Click to expand...


                  Hi! Since you asked...

                  1. The pig welcome photo is lousy because it's too detailed, not a cartoon/drawing. Makes me look at it way too hard.

                  2. The ads at the bottom are annoying.

                  3. Your description of the app is mis leading. This app does 2 things

                  ---1. Tell me how long Until I can retire!!!

                  ---2. Tell me what saving/spending changes might have on that date.

                  4. You should/could have a feature which allows you to set the date or age when you want to retire. For example, the app currently says I'll retire at 53.29 years old at 2:31pm. (I can't wait to put that on my calendar, haha). What if I want to retire at 50, instead of 53.29, or on 2/22/2022 at 2:22:22 pm? How much do I need to save, or not spend (slider between the 2?).

                  5. Does this include raises?

                  6. your assumptions for 8% growth seem high.

                  7. Same for inflation *looked this this, and it's sound. But maybe a link to why these are sound #'s would be good.

                  8. The side menu isn't ordered. It isn't A-Z, it isn't what I use often, help/about should always go @ the end, not in the middle. Feedback is okay at the end, but why is mathematics at the end?

                  9. "Trends" is in beta? Isn't the app in beta?

                  10. App says I can retire at 53.29. How did it determine that? A calcuation of spending/savings and SWR? (rhetorical questions...) but show me the #'s! How much will I have at retirement?

                  11. Show examples? how much does netflix really cost me? How about a new $400/month car? How about savings $100/month?

                  12. boring error message. Click upgrade, see $4.99, think that's steep, click "Restore", refuse to sign in to app store, go about my day using the app, some many seconds (8-10?) later, this pops up.

                  .

                   


                  c. Some ‘probability’ based FI.
                  Click to expand...


                  13. Yeah, agreed. Reading here. Monte Carlo simulations?

                  14. which version of the app is this? can't find it, even in about.

                  15. In your "about" you say "if you pull 20k out... how many more hours will I have to work"... well tell me how many more days I'm constrained to sit like Dilbert in a cubicle. Just saying you'll now retire at 56.44 instead of 53.29 isn't as impactful.

                   

                  Comment


                  • #10




                    This is on the Android version.

                    To enter age I would have had to swipe hundreds of months back in time, very annoying. A drop down version would be better.

                    I dont get the assumptions, and maybe it was due to the age issues, but I entered in a saving amount equal to spending and it just says free now, which clearly isnt the case in your first year.
                    Click to expand...


                    Thanks Zaphod.

                    Regarding the date picker, I agree that changing the year is not intuitive for Android. For the future if run into this on any Android app, you change the year by clicking on the year rather than swiping through all the months. I agree that drop downs are a good idea, I'll go that route.

                    Regarding your result of "free now": did you not have any assets to start with? Basically the app calculates the FI date when Assets*SWR >= spending (with inflation adjustments), so I think there must be more to the story, unless you entered a zero somewhere.

                     

                    Comment


                    • #11




                      I really like the concept of this app.  Please take the remainder thoughts as advice/thoughts, not a negative critique of the idea.

                      a. Needs to be more robust/customizable from an input standpoint.

                      b. FI has a different meaning to people yet the app is based upon ‘How much will I spend in retirement’ and the ‘withdraw rate’.  FI for me maybe $1 million in retirement accounts, whereas someone with the same annual retirement income/withdraw rate may consider FI to be $10 million (a considerable cushion).

                      c. Some ‘probability’ based FI.

                      d. Understanding/question expenses related to FI.  For example, it says will be FI at age 56 which is cool, but now I need to go back and ‘re-estimate’ my retirement spending because now I have 9 odd years to pay for healthcare (that I didn’t expect) until Medicare kicks in.

                      e. If this could integrate into other existing apps/software would be intriguing imo.  The ability to draw information from other apps/software on assets that can be excluding/included.  For example, a 529 would not necessarily be included, but a taxable investment account would be.

                      Good luck and look forward to seeing additional improvements in this app.
                      Click to expand...


                      Thanks ajm. These are really good suggestions.

                      a. Yes. I agree. Currently working on incorporating time-based events (like pensions or guaranteed income or inheritance). What others did you have in mind?

                      b. I think maybe this one needs more discussion of the safe withdrawal rate, with safe being the important part. Probably good to include more resources in my FAQ for determining this number.

                      c. Yes!

                      d. Yes, similar to a) above, the app should incorporate time-based events. Health care is a good example.

                      e. I've thought about this, and agree that would be awesome. At this point, I'm not willing to take on the liability associated with access to financial accounts, etc. That would be turning this hobby project into something a lot bigger.

                      Comment


                      • #12




                        The problem with this sort of comparison is if you carry it out to ridiculous conclusions it doesn’t make sense. For example, you could say you need $1 Million to pay your $3000/month mortgage. Or, you could just pay the mortgage off for $300K (or whatever is left on it.) Bam- you need $700K less. Same with an 80 year old who likes his country club membership. You don’t need 25 times the membership to support that for the next 5 or 10 years until you die. You could just, you know, pay 5 times the annual fee. Also, it ignores guaranteed income. You don’t need to use a 3% or 4% withdrawal rule to pay for something when you’re planning to buy a 7% SPIA.

                        So, it’s good to get people saving, but if you let it rule your life it’ll turn you into the richest guy in the graveyard. Money is made to be spent. Maybe not now, but eventually. I save now in order to spend more later.
                        Click to expand...


                        Thanks Jim, appreciate your thoughts.

                        The main goal of the app is really to make people more intentional with their spending, really to put into perspective how much certain actions cost. Maybe that $5/day mocha frapp really is worth it to you, maybe not.

                        Your point about the 80-year old is a good one. The app does not have any time horizon built-in and is basically goes with the "infinite" retirement using SWR. Adding a maximum life expectancy would put limits on repeating expenses that really don't go forever.

                        I do intend to add guaranteed income to the baseline, that is certainly missing at this point.

                        Comment


                        • #13




                          The problem with this sort of comparison is if you carry it out to ridiculous conclusions it doesn’t make sense. For example, you could say you need $1 Million to pay your $3000/month mortgage. Or, you could just pay the mortgage off for $300K (or whatever is left on it.) Bam- you need $700K less. Same with an 80 year old who likes his country club membership. You don’t need 25 times the membership to support that for the next 5 or 10 years until you die. You could just, you know, pay 5 times the annual fee. Also, it ignores guaranteed income. You don’t need to use a 3% or 4% withdrawal rule to pay for something when you’re planning to buy a 7% SPIA.

                          So, it’s good to get people saving, but if you let it rule your life it’ll turn you into the richest guy in the graveyard. Money is made to be spent. Maybe not now, but eventually. I save now in order to spend more later.


                          This is an excellent point, and the bit about the eight year old country club goer is a good one. The app sounds great, but would be better if it had time-based events built into it as others have pointed out.

                          Comment

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