GLOSSARY · FIRE & EARLY RETIREMENT
Barista FIRE
Leaving full-time work while part-time income pays part of your spending, so the portfolio only has to cover the rest. The smaller withdrawal means a smaller target than full FIRE.
Also called: barista financial independence, semi-retirement
FORMULA
Barista FIRE number = (annual spending − part-time income) ÷ withdrawal rate
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · RETIREMENT PLANNING FUNDAMENTALS · FOUNDATIONSDeciding What Retirement Means for YouCHAPTER · LIFESTYLE DESIGN & INTENTIONAL BUDGETING · DEEP DIVEDesigning the Life First, Then the NumbersRELATED TERMS
SOURCES
- Determining Withdrawal Rates Using Historical Data. Bengen, Journal of Financial Planning, 1994.