Question 1

What does FIRE stand for?

Accepted Answer

FIRE stands for Financial Independence, Retire Early. It is a movement focused on extreme savings and investment, allowing people to retire decades earlier than traditional plans suggest.

Question 2

How much do I need for FIRE?

Accepted Answer

Multiply your annual expenses by 25 (based on the 4% safe withdrawal rate). If you spend $40,000/year, your FIRE number is $1,000,000. If you spend $80,000/year, it is $2,000,000.

Question 3

What is the difference between Lean FIRE and Fat FIRE?

Accepted Answer

Lean FIRE means retiring on a minimal budget (typically under $40,000/year). Fat FIRE means retiring with a more luxurious lifestyle ($100,000+/year). Coast FIRE means you have saved enough that compound growth alone will fund retirement by a traditional age.

Question 4

What savings rate do I need for FIRE?

Accepted Answer

The higher your savings rate, the faster you reach FIRE. At 50% savings rate, you can retire in about 17 years. At 70%, about 8.5 years. At 30%, about 28 years.

Question 5

Is the 4% rule safe?

Accepted Answer

The 4% rule has a historical success rate of 95%+ over 30-year periods. For early retirees with 40-50+ year time horizons, many use 3.5% or supplement with flexible spending strategies.

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