Checklist #48 · Planning
Financial Independence Milestone
Track progress toward financial independence — the point at which your assets generate enough to support your lifestyle without employment income.
16 action items~20 min to complete4 sections
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Calculate Your FI Number',
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Define your target annual spending in financial independenceKey
Apply the 25x rule: FI Number = Annual Spending × 25Key
Verify the 4% rule against your expected retirement length — adjust for longer timelinesWatch out
Add any expected supplemental income: Social Security, pension, rental incomeAction
Account for inflation in spending projectionsKey
Model healthcare costs pre-Medicare separatelyWatch out
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Assess Your Progress
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Calculate your current investable net worth (liquid assets + retirement accounts — exclude home equity)Key
Calculate your FI Percentage: (Current Investable NW ÷ FI Number) × 100Action
Calculate years to FI based on current savings rate and expected investment returnKey
Identify your single biggest lever for accelerating FI: income increase, savings rate, or expense reduction
Track monthly FI percentage progress chartAction
Stress-test FI number against market downturnsWatch out
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$1.6M
average investable portfolio size needed for $65K/yr at 4% withdrawal rate
15–30 yrs
typical timeline from starting to save to reaching FI at a 20–50% savings rate
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FI Milestone Markers',
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FI 10%: First major milestone — you have a positive, growing investable net worth working for you
FI 25%: Your portfolio is generating meaningful passive income — momentum accelerates here
FI 50%: 'Coast FI' territory — if you stop contributing, you'd still reach FI at traditional retirement ageKey
FI 75%: 'Barista FI' territory — part-time income covers living expenses; portfolio covers the restAction
FI 100%: Work becomes optional — the portfolio funds your lifestyle indefinitelyKey
Set specific net worth dollar targets per milestoneAction
Plan lifestyle adjustments at Barista FI thresholdKey
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Withdrawal & Life Strategy
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Plan your withdrawal sequence: taxable accounts → tax-deferred → tax-free (Roth)Action
Build a 2-year cash/bond buffer outside equities to avoid selling during downturnsKey
Define what you will do with your time when work becomes optional
Optimize tax location by account typeKey
Calculate safe withdrawal rate for your situationAction
Plan Social Security claiming strategy and timingKey