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Find your early retirement nest egg target and map out how soon you can sustainably retire.
Financial Independence, Retire Early (FIRE) is a movement dedicated to aggressive savings and investment to retire decades before the standard retirement age.
It buys back your time. Instead of working until 65 out of necessity, FIRE gives you the freedom to choose whether, how, and when you work.
Anyone looking to decouple their time from a mandatory 9-to-5 job, willing to optimize their savings rate, and disciplined enough to invest heavily.
You cannot determine your FIRE number without knowing exactly how much you spend annually.
Multiply your projected annual retirement expenses by 25 (for a 4% withdrawal rate) or 33 (for a safer 3% rate).
Increase your income and optimize expenses. Aim for a savings rate of 40-60%.
Deploy your savings into low-cost, globally diversified index funds to capture compound growth.
Stress-test your portfolio against historical market crashes to ensure survival.
Before retiring, build a 2-3 year cash/bond tent to protect against sequence of returns risk.
Determine your Financial Independence nest egg target.
Once your investment portfolio crosses this amount, you can theoretically retire early and sustainably fund your lifestyle.
Model how quickly your monthly savings will compound over time.
When to use: When estimating how many years it will take to hit your FIRE number based on current savings.
See the impact of different annualized return rates on your portfolio.
When to use: When modeling the growth of your existing net worth without adding new funds (Coast FIRE).
The philosophy of financial independence and buying back your time.
How to calculate your baseline FIRE number using the 4% rule.
Why your savings percentage matters more than your absolute income.
Understanding Lean, Fat, Coast, and Barista FIRE variations.
How to structure your portfolio across equities, debt, and real estate.
Factoring in the silent wealth killers over a 50-year retirement.
Why average returns don't matter if a crash happens in year 1 of retirement.
Re-evaluating the 4% rule for 40-50 year time horizons (often adjusting to 3-3.25%).
Advanced strategies to mitigate early retirement portfolio failure.
* Scenarios are illustrative and rely on assumed market conditions.
Lean FIRE: Minimalist lifestyle, tight budget, retiring sooner but with less margin for error.
Fat FIRE: Luxurious lifestyle, high budget, requires working longer to build a massive portfolio.
4% Withdrawal: The classic Trinity study rule. Allows for a smaller FIRE number (25x expenses).
3% Withdrawal: More conservative. Requires a larger FIRE number (33.3x expenses).
The total portfolio value required to sustain your lifestyle indefinitely without working.
The percentage of your portfolio you can withdraw annually adjusted for inflation without running out of money.
The risk of experiencing negative market returns early in retirement, which permanently impairs the portfolio.
Having enough invested early on that it will compound to your FIRE number by traditional retirement age without adding another dime.