Definition

FIRE stands for Financial Independence, Retire Early — the goal of accumulating enough invested assets (often around 25 times yearly expenses) that work becomes optional. It is driven primarily by a high savings rate: the larger the share of income you save and invest, the sooner the timeline. Variations range from frugal "lean FIRE" to higher-spending "fat FIRE."

1. The FIRE Movement Explained: Lean, Fat, and Coast FIRE

   FIRE — Financial Independence, Retire Early — is not one strategy. It is a spectrum of approaches from extreme frugality to comfortable early semi-retirement. Here is how each variant works.
   retirement

1. 4% Rule

   A guideline that withdrawing about 4% of a portfolio in year one is likely to last 30 years.
2. Time Value of Money

   A dollar today is worth more than a dollar in the future because it can be invested now.
3. Asset Allocation

   How your portfolio is divided among stocks, bonds, and other assets.