# FIRE Planning Calculator - Educational Enhancements

## Summary of Changes

This document describes the educational content and explanations added to the FIRE Planning mini app to help users understand the calculations and methodology.

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## 1. Educational Info Section (Top of Page)

**Location:** Below the header, before the input form

**Content:**
- **Green highlighted box** with lightbulb icon
- Explanation of FIRE (Financial Independence, Retire Early) movement
- Detailed explanation of the **4% Safe Withdrawal Rate Rule**
- Formula breakdown: **FIRE Target = Annual Expenses × 25**
- Practical example: A$80,000/year expenses → A$2,000,000 target
- Trinity Study reference

**Purpose:** Educate users before they enter data

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## 2. Calculation Methodology Box

**Location:** In results section, above summary cards

**Content:**
- **Blue highlighted box** explaining step-by-step calculations
- Shows formulas with **real-time calculated values**:
  1. Annual Savings = Income × Savings Rate
  2. FIRE Target (4% Rule) = Annual Expenses × 25
  3. Yearly Growth = (Net Worth + Savings) × (1 + Return Rate)
  4. Inflation-Adjusted Target = FIRE Target × (1 + Inflation)^years
  5. Progress % = (Net Worth ÷ Adjusted Target) × 100%

**Purpose:** Transparency in how numbers are calculated

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## 3. Enhanced Summary Cards

**Added to each card:**
- **Subtitle explanations** below the main value
- Context about what each number means
- Additional details like:
  - "Based on 4% rule (25× expenses)"
  - "Adjusted for X% annual inflation"
  - "In Y years (target year)"
  - Suggestions when FIRE not achieved

**Purpose:** Help users interpret each metric

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## 4. Scenario Analysis Explanation

**Location:** Above scenario tabs

**Content:**
- Explanation of why different scenarios matter
- What each scenario represents:
  - **Conservative (6%)**: Bonds/safer investments
  - **Neutral (8%)**: Balanced portfolio
  - **Optimistic (10%)**: Aggressive stock-heavy portfolio
- Note about historical market variance

**Purpose:** Help users understand risk and return trade-offs

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## 5. Chart Descriptions

**Added before each chart:**

### Net Worth Growth Chart
- Explains green line (projected net worth with compound growth)
- Explains red dashed line (inflation-adjusted FIRE target)
- Clear indication of what "crossing" means (FIRE achieved!)

### Progress Chart
- Explains the percentage calculation
- Notes that 100% = FIRE achieved

### Projection Table
- Explains what each column represents
- Notes that green rows = FIRE achieved years

**Purpose:** Make visualizations self-explanatory

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## 6. FAQ Section (Bottom of Page)

**Location:** Below all results and charts

**6 Comprehensive FAQs:**

### Q1: Why multiply annual expenses by 25?
- Explains 4% rule mathematics
- Provides concrete example
- Shows the inverse relationship (1 ÷ 0.04 = 25)

### Q2: What's a realistic return rate?
- Historical S&P 500 returns (~10% nominal)
- Real returns after inflation (7-8%)
- Different investor profiles (conservative/balanced/aggressive)
- Recommended ranges (6-10%)

### Q3: How does compound growth work?
- Formula: New Net Worth = (Previous + Savings) × (1 + Return)
- Step-by-step numerical example
- Explains exponential growth concept

### Q4: Why does FIRE target increase over time?
- Inflation explanation
- Purchasing power concept
- Formula: Future = Current × (1 + Inflation)^years
- Example: A$100k → A$145k in 15 years at 2.5% inflation

### Q5: Should I include my home in net worth?
- Distinction between total net worth and investable assets
- Why primary residence doesn't generate FIRE cash flow
- Recommendation to track both separately

### Q6: Important Assumptions & Limitations
- **Bulleted list of caveats:**
  - Constant savings/income assumption
  - Taxes and healthcare not included
  - Market volatility considerations
  - Superannuation/401k exclusion
  - Disclaimer: Planning tool, not financial advice

**Purpose:** Address common questions and provide education

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## Visual Design

All educational sections use:
- **Color-coded backgrounds:**
  - Green gradient for FIRE/4% rule intro
  - Blue for calculation methodology
  - Yellow/cream for FAQ section
  - White cards for individual FAQs
- **Icons** for visual interest and quick recognition
- **Proper hierarchy** with headings and spacing
- **Readable font sizes** (text-sm for detailed content)
- **Responsive design** that works on mobile

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## User Journey

1. **Learn first** - Educational intro sets context
2. **Input data** - Clear help text on each field
3. **Calculate** - See methodology explanation
4. **Understand results** - Enhanced summary cards with context
5. **Visualize** - Charts with descriptions
6. **Deep dive** - Detailed table
7. **Learn more** - FAQ section for deeper understanding

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## Key Formulas Highlighted

1. **FIRE Target** = Annual Expenses × 25
2. **Annual Savings** = Income × Savings Rate  
3. **Compound Growth** = (Net Worth + Savings) × (1 + Return Rate)
4. **Inflation Adjustment** = Target × (1 + Inflation Rate)^years
5. **Progress** = (Net Worth ÷ Adjusted Target) × 100%

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## Benefits

✅ **Transparency** - Users understand where numbers come from  
✅ **Education** - Learn FIRE principles while planning  
✅ **Confidence** - Make informed decisions with full context  
✅ **Trust** - Clear methodology builds credibility  
✅ **Self-service** - FAQ answers common questions without support  

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## Future Enhancements (Optional)

- Interactive tooltips on hover for input fields
- Video tutorials or animated explanations
- Links to Trinity Study and FIRE movement resources
- Glossary of financial terms
- Share/export functionality with explanations included
- Multi-language support for international users

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**Last Updated:** October 11, 2025  
**Version:** 1.1 (Educational Enhancement Release)
