FIRE for Beginners
FIRE — Financial Independence, Retire Early — is the practice of saving and investing aggressively so work becomes optional decades before traditional retirement age. This beginner-friendly guide covers the math, the milestones, and the tools you need.
The core idea
Once your invested portfolio is large enough that a safe withdrawal covers your annual spending, work becomes optional. The standard rule of thumb is the 4% rule: a portfolio that's 25× your annual spending should sustain you indefinitely.
Types of FIRE
- Lean FIRE: retire on a small annual spend, often under $40k.
- Fat FIRE: retire on a generous budget, $100k+.
- Coast FIRE: invested enough that compounding finishes the job — track your Coast FIRE number.
- Barista FIRE: part-time work covers expenses while the portfolio coasts.
The savings rate matters most
Your savings rate — the % of after-tax income you invest — drives your timeline more than your salary. A 50% savings rate typically reaches FIRE in ~17 years; a 25% rate takes ~32 years.
Where to invest
Most FIRE plans use low-cost index funds inside tax-advantaged accounts (401k, IRA, HSA) first, then taxable brokerage accounts. Diversification, low fees, and consistent contributions matter more than picking individual stocks.
The first milestone — Coast FIRE
The easiest FIRE milestone to hit is Coast FIRE. Once you reach it, your retirement savings is effectively done — even if you stop contributing, compound growth alone will reach your full FIRE number by retirement age. Use the free Coast FIRE tracker to find your number.
Start with your Coast FIRE number
Coast FIRE is the most encouraging milestone for beginners — and the fastest to hit.
Calculate your Coast FIRE numberRelated calculators
Track your progress toward your Coast FIRE number.
Find the age you can stop saving and let compounding finish the job.
Calculate your Coast FIRE target by age.
Coast FIRE for PAs, NPs, and nurses going part-time or per diem.