Early Retirement (FIRE)

What is FIRE? Financially Independent, Retire Early — a quick explainer

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FIRE is a strategy of saving and investing aggressively — typically 50–70% of your income — so your portfolio generates enough passive income to cover your expenses indefinitely. Once you hit your number, you no longer need to work. The core math: divide your annual spending by your safe withdrawal rate (commonly 4%) to get your target portfolio size.

Lean FIRE

Retire early on a very frugal budget — typically under $40k/year. Maximum freedom, minimum spending.

Fat FIRE

Retire early while maintaining a comfortable, higher-spending lifestyle. Requires a larger portfolio.

Barista FIRE

Semi-retire — your portfolio covers most expenses, but you work part-time for extras and health insurance.

Coast FIRE

You've saved enough that compound growth alone will hit your number by traditional retirement age — so you can stop aggressively saving now.

Current age32

Target retirement age45

Current savings / investments$85,000

Annual savings contribution$30,000

Annual spending in retirement$55,000

Expected return (pre-retirement)8.0%

Safe withdrawal rate4.0%

Your FIRE number

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at 4% withdrawal

Projected at target age

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vs. target

True FIRE age

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years from now

Progress to your FIRE number

$0——

You're — of the way there today

Portfolio growth trajectory

Portfolio value FIRE number

Key metrics

Years to retire

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Savings rate needed

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Monthly income in retirement

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Portfolio survives to age

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