FIRE Number
Your FIRE number is an estimate of invested wealth required to sustain your annual spending indefinitely, assuming a constant withdrawal rate.
Annual spending
Withdrawal rate (%)
Your FIRE number
$1,500,000
How to reduce your FIRE number:
- Reduce annual spending. Every dollar of spending compounds into a much larger required portfolio.
- Increase withdrawal rate. A higher withdrawal rate lowers the required portfolio, but increases risk.
Withdrawal rates above 4% carry increasing long-term failure risk based on historical simulations such as the Trinity Study. Higher rates may work, but they leave less margin for market downturns, inflation, and sequence-of-returns risk.
Assumes a constant withdrawal rate. Lower spending materially reduces required portfolio size.
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