FIRE FAQs

What is the 4% rule?

The 4% rule is a guideline suggesting you can withdraw 4% of your portfolio in the first year of retirement, then adjust that dollar amount for inflation each year, with a historically high chance of lasting 30 years. In this calculator, your FIRE number is roughly your annual expenses divided by your withdrawal rate (e.g., expenses ÷ 0.04).

How do I choose a withdrawal rate?

Conservative investors often choose 3%–3.5%; others use 4%. Lower rates require a larger portfolio but provide more margin for market volatility and long retirements. Consider your risk tolerance, time horizon, and flexibility to adjust spending.

What return should I use?

Long‑term stock/bond mixes have returned ~5%–8% annually before inflation depending on allocation and timeframe. The expected return input is an estimate—using a slightly lower number adds prudence. Re‑evaluate periodically as markets change.

How should I account for inflation?

This tool simplifies by using a nominal return. For a real (inflation‑adjusted) view, reduce your return by expected inflation (e.g., 7% nominal − 2.5% inflation ≈ 4.5% real). You can also increase contributions over time to offset inflation.

What if I don’t reach my target by the selected age?

Increase contributions, extend the target age, reduce expenses (which lowers the FIRE number), or combine strategies. Small monthly increases can meaningfully accelerate the timeline due to compounding.