u/glyptometa

I'm working on a model for a 29 yr-old to launch a FIRE financial plan. The indexation of capital cost base somewhat forces integrating inflation throughout the plan, IMO, which is a lot of work.

So, I'm going to ask for some help, from anyone that's willing. My goal is to base it on some reasonable assumptions. What do you think of the following starting points.

Single person

FIRE goal at 50 yrs of age.

$120K per year annual income, plus 12% super, rising at 5% per year.

3% annual inflation.

$90K per year annual spending in retirement (today's dollars).

Tax brackets following inflation, but lagging, and only ratcheted up every five years.

A200 total return 7% (3.5% dividends, 60% franked) 3.5% capital appreciation.

BGBL total return 8% (1.5% dividends) 6.5% capital appreciation.

Cash fixed at 2 times annual spending plus paying tax minus annual cash received across two years in interest and dividends. The rest held 30%/70% A200/BGBL. Cash earns 4.5% interest.

Thanks for reading. I would very much welcome feedback on any individual assumption or combinations if you're up for it.

If anyone has found a way to do a reasonable plan without inflation, I'd love to hear that even more!!

This will be a good thing, and for many people will offset some of the negatives. The reduction of the bottom tax bracket from 16% to 15% is also helpful.

However, I found some of the text alarming. This web page includes a clearly partisan statement:

"As part of their election commitments, on 13 April 2025 the Labor party announced plans to provide eligible individual taxpayers with a $1,000 instant tax deduction for work-related expenses. This measure is now law."

This is a strong contrast to changes that some people would consider negative, such as the page about Capital Gains Tax and Negative Gearing, where "the government" is given the credit.

"On 12 May 2026, as part of the 2026–27 Federal Budget, the Government announced it would reform negative gearing and capital gains tax (CGT) arrangements. These measures are now law."

There is no statement such as "Contrary to their election commitments", for example.

Tax reform – Boosting home ownership – Reforming negative gearing and capital gains tax | Australian Taxation Office

Does this seem like partisan capture of the bureaucracy to anyone else?

I'm mostly just curious really, but wondering if people see the sheet music in their brain after memorising, or is it purely physical memory or something else.

For difficult bits, I often see flashes inside my brain, especially notations I've added, and I'm wondering if it's something I could improve with some sort of brain exercises, and/or if I should be suppressing it.