Calculate your FIRE number — the amount you need invested to live off your portfolio forever. Find out when you can retire based on your savings rate and spending.
FIRE stands for Financial Independence, Retire Early. The concept is simple: save and invest aggressively so your investment portfolio generates enough passive income to cover your living expenses — permanently. Once you reach your "FIRE number," work becomes optional.
With the standard 4% withdrawal rate, if you spend $50,000/year, your FIRE number is $1,250,000. Once your portfolio reaches $1.25M, you can withdraw $50,000 annually with high confidence your money will last 30+ years.
The 4% rule comes from the Trinity Study, which found that withdrawing 4% of your portfolio in year one (then adjusting for inflation) has historically sustained a portfolio for at least 30 years in 95%+ of cases. More conservative planners use 3-3.5% for extra safety, especially for early retirees who need their money to last 40-50+ years.
Lean FIRE: Retiring on a minimal budget ($25-40K/year). Requires less savings but means a frugal lifestyle.
Regular FIRE: Retiring on a comfortable middle-class budget ($40-80K/year). The most common target.
Fat FIRE: Retiring on a generous budget ($100K+/year). Requires a larger portfolio but allows for luxury and travel.
Coast FIRE: Having enough invested that compound growth alone will reach your FIRE number by traditional retirement age (65). You still work, but only to cover current expenses — no more saving needed.
The single biggest factor in reaching FIRE isn't your investment returns — it's your savings rate. At a 50% savings rate with 7% returns, you can retire in roughly 17 years regardless of income. At 70%, it drops to about 8-9 years. The math works the same whether you earn $50K or $500K.
Recent research suggests 3.5% may be safer for early retirees with 40+ year horizons. The original study assumed a 30-year retirement. Many FIRE practitioners use 3.5% for extra safety margin.
This is the biggest challenge for early retirees. Budget $500-$1,500/month for health insurance premiums in your annual expenses. ACA marketplace plans are the most common solution.
Most FIRE practitioners invest in low-cost index funds (S&P 500, Total Stock Market) through a mix of 401(k), Roth IRA, and taxable brokerage accounts. Browse our stock directory to explore individual stock options.
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