GLOSSARY · FIRE & EARLY RETIREMENT
FIRE (financial independence, retire early)
Reaching the point where invested savings can pay for your spending, so work becomes optional, and often stopping work well before the usual retirement age. In practice it is a savings-rate and spending goal: you save a large share of income until the portfolio reaches your FIRE number.
Also called: financial independence, retire early, FIRE movement
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · RETIREMENT PLANNING FUNDAMENTALS · FOUNDATIONSDeciding What Retirement Means for YouCHAPTER · THE LONG GAME: GREEN CARD, RETIREMENT OR LEAVING · DEEP DIVERetiring Early When You May Not StayRELATED TERMS
SOURCES
- Determining Withdrawal Rates Using Historical Data. Bengen, Journal of Financial Planning, 1994.