💰Calculate your net worth, future value and retirement! (Featuring financial-freedom calculator version 3)

An independent exercise, not a statement by the video creator or verification of every claim in the video.

The order of losses changes the balance even with the same returns

Start with a hypothetical balance of 100 units, apply each year’s return, then withdraw 10 units at year-end. Returns of -20% followed by +25% leave 70 and then 77.5. Reversing the order to +25%, -20% leaves 115 and then 82. Without withdrawals both paths return to 100, but withdrawals produce a final difference of 4.5 units. When reviewing a retirement calculator, compare the same loss immediately after retirement and later in the plan instead of only changing an average return.

Check for yourself

1. Does the withdrawal occur before or after the return is applied?
2. How much essential spending would be difficult to cut after a loss?
3. What changes if the horizon lengthens or pension commencement is delayed?

Limits of application

This hypothetical unit-based calculation excludes taxes, fees, inflation and additional income. It does not establish a safe return or withdrawal amount; averages in the linked life table do not guarantee an individual funding horizon.