What FIRE means
FIRE means having enough invested that paid work becomes optional. Many people who reach it keep working, but on their own terms.
The 25x rule
A common estimate is that you need about 25 times your yearly spending invested. If you spend $60,000 a year, the target is roughly $1.5 million.
This comes from the "4% rule": historically, withdrawing about 4% of a balanced portfolio in the first year, then adjusting for inflation, has lasted 30 years or more. It is a useful guide, not a guarantee.
Your savings rate is the main lever
The share of income you save matters more than investment returns. Saving 10% might mean working for around 50 years; saving 50% can mean independence in roughly 17 years.
Raising your savings rate works twice: you invest more, and you get used to living on less.
Flavours of FIRE
Lean FIRE: a simple, lower-cost lifestyle with a smaller target.
Fat FIRE: a more generous budget and a larger target.
Coast FIRE: enough invested early that it can grow on its own to a full retirement, while you earn just enough to cover today's costs.
Barista FIRE: part-time work covers some expenses, so investments need to cover less.
Things to weigh
Health care, inflation, market downturns early in retirement, and simply what you want your days to look like. Use the Crystal Ball to test different targets and dates against your real numbers.