Financial Independence, Retire Early — how many years until you're free?
Your total yearly spending — housing, food, insurance, entertainment, everything.
All invested assets: brokerage, 401(k), IRA, savings earmarked for retirement.
How much you invest per year. FIRE practitioners typically save 50-70% of income.
The classic 4% rule, or use 3.5% for extra safety margin.
See your FIRE number, years to FIRE, and projected monthly income in early retirement.
At 4% withdrawal rate: FIRE Number = Expenses × 25. At 3.5%: Expenses × 28.6. This is the portfolio size that can sustain your lifestyle indefinitely based on historical market returns.
Starting to invest at 25 vs 35 can mean 2x more retirement savings due to compound interest.
Always maximize your employer 401(k) match — it's essentially free money you're leaving on the table.
FIRE (Financial Independence, Retire Early) is a lifestyle movement focused on extreme savings and investment to retire decades before traditional age 65. The core strategy: save 50-70% of your income, invest in low-cost index funds, and build a portfolio large enough to cover your expenses through investment returns. Most FIRE followers target retirement in their 30s or 40s.
Your FIRE number = Annual Expenses × 25. This is based on the 4% safe withdrawal rate. If you spend $40,000/year, your FIRE number is $1,000,000. If you spend $60,000/year, it's $1,500,000. To find your number: track all expenses for 3 months, annualize them, then multiply by 25. Include healthcare costs since you won't have employer coverage.
The 4% rule says you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation annually, with a 95%+ probability of lasting 30 years. It's based on the Trinity Study using historical US stock/bond data. Critics argue it may be too aggressive given lower expected future returns. Many FIRE followers use 3.5% for extra safety, requiring 28.6× annual expenses instead of 25×.
Lean FIRE: Extreme frugality, typically $25,000-$40,000/year spending. Fat FIRE: Comfortable lifestyle, $80,000-$120,000+/year. Barista FIRE: Semi-retired with part-time work covering some expenses. Coast FIRE: Enough invested that compound growth will fund retirement — you only need to cover current expenses. Each type requires different savings targets and timelines.
Strategies to avoid the 10% early withdrawal penalty: Roth IRA contributions (not earnings) can be withdrawn anytime tax-free. Rule of 55: leave employer at 55+ to access that 401(k). 72(t) SEPP: substantially equal periodic payments from IRA. Roth conversion ladder: convert traditional to Roth, wait 5 years, withdraw. Most FIRE followers use a combination of taxable brokerage accounts and Roth ladders.