How much money do I need invested to be considered financially independent?

The common shorthand is 25 times your annual spending, which is the inverse of a 4% withdrawal rate. If you spend $60,000 a year, that points to roughly $1.5 million invested. This target is based on the Trinity Study and later Vanguard and Morningstar research on sustainable withdrawals from a stock-and-bond portfolio.

Crucially, the number is driven by spending, not income. Someone spending $40,000 needs $1 million; someone spending $120,000 needs $3 million. If you plan to retire in your 40s and need the money to last 50-plus years, many planners suggest using 28x to 33x (a 3% to 3.5% rate) for extra safety. Estimate your own figure with the FIRE Calculator at wealthserene.com/tools/fire-calculator.