Question 1

What is the 4% rule in FIRE?

Accepted Answer

The 4% rule suggests you can withdraw 4% of your portfolio annually without running out of money for 30+ years. This means your FIRE number is 25× your annual expenses. However, some experts recommend using 3.5% or even 3% for longer retirements.

Question 2

What is a good savings rate for FIRE?

Accepted Answer

Most FIRE practitioners aim for 50%+ savings rate. At 50% savings, you can reach FIRE in about 17 years. At 75% savings, you can do it in about 7 years. The higher your savings rate, the faster you reach financial independence.

Question 3

Should I use inflation-adjusted numbers for FIRE?

Accepted Answer

Yes, adjusting for inflation gives you the 'real' value of your FIRE number in today's dollars. This helps you understand what your money will actually be worth when you retire, making planning more accurate.

When Can You Retire Early?

Your Financial Picture

Your FIRE Analysis

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When Can You Retire Early?

Your Financial Picture

Your FIRE Analysis

More Tools

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