A step-by-step guide to planning your early retirement with BridgeToFI
If you want to retire at 40 or 45, you'll hit a snag: most of your savings are locked in 401(k)s and IRAs that charge penalties for early withdrawals before age 59½. That's potentially 15 to 20 years you need to cover from other sources.
A bridge strategy uses your accessible funds (taxable brokerage accounts, Roth IRA contributions, cash savings) to cover expenses during this gap, while your tax-advantaged accounts keep growing untouched.
Start with your current age, target retirement age, and expected lifespan. Most FIRE planners use 90 to 95 to be safe. You'll also set your expected growth rates and inflation assumptions.
Enter each investment account with its current balance and monthly contributions. BridgeToFI automatically sorts them into priority tiers:
Enter your expected monthly spending in retirement. You can set up spending phases too, since many retirees spend more early on (travel, new hobbies) and less later. You can also add healthcare costs that drop off once Medicare kicks in at 65.
Add Social Security (starting anywhere from 62 to 70), pensions, part-time work, or rental income. Each source has its own start date and optional cost-of-living adjustments.
The wealth projection chart shows your total assets over time, with the bridge period highlighted. Use the "Bridge Focus" toggle to zoom in on those critical years between early retirement and 59½. Click the details button to see year-by-year breakdowns.
Real markets don't return a steady 7% every year. Turn on Monte Carlo to run 1,000+ scenarios with randomized returns based on historical patterns. You'll see your success probability and the range of possible outcomes.
Roth Conversion Ladder: Convert Traditional IRA funds to Roth each year during the bridge phase. After a 5-year waiting period, these conversions can be withdrawn tax and penalty free. This creates a pipeline of accessible funds without touching your original Roth contributions.
Healthcare Planning: Don't forget healthcare costs before Medicare at 65. Budget $500 to $2,000 per month depending on your age and coverage needs. ACA marketplace subsidies can help if you manage your taxable income carefully.
Your "FIRE number" is the total amount you need invested to sustain your lifestyle indefinitely. The traditional calculation is 25 times your annual expenses, based on the 4% safe withdrawal rate.
Example: If you spend $60,000 per year, your FIRE number is $1.5 million. Early retirees often need more though, since the retirement period is longer and healthcare costs add up before Medicare.
BridgeToFI goes further than this simple calculation. It shows you exactly how your money flows over time, accounting for Social Security, pensions, different tax treatments, and spending changes.
BridgeToFI is completely free. No signup, no email required, no ads. Your data stays in your browser and is never sent to any server.