Traditional FIRE Calculator
Plan your journey to financial independence in 4 simple steps
1
Personal Info
2
Current Finances
3
Retirement Goals
4
Investment Strategy
About Traditional FIRE
Traditional FIRE (Financial Independence, Retire Early) is based on the 4% rule, which suggests you need 25 times your annual expenses saved to retire safely. This calculator helps you determine how much you need to save and how long it will take to reach your FIRE number.
Key Concepts:
- FIRE Number: 25 times your annual expenses (based on 4% safe withdrawal rate)
- 4% Rule: You can safely withdraw 4% of your portfolio annually in retirement
- Compound Interest: Your investments grow exponentially over time
- Inflation Adjustment: Consider the impact of inflation on your expenses
- Savings Rate: The percentage of income you save determines how quickly you reach FIRE
Tips for Success:
- Increase your savings rate to accelerate your FIRE timeline
- Consider geographic arbitrage - earning in high-cost areas and retiring in low-cost areas
- Diversify your investments across different asset classes
- Plan for healthcare costs before traditional retirement age
- Build multiple income streams for added security