Financial Independence, Retire Early (FIRE) Explained

Financial Independence, Retire Early (FIRE) means earning enough from investments to cover living expenses without needing a job.

FIRE focuses on freedom, flexibility, and intentional living, which can mean retiring early or simply having the security to choose how to spend time.

The savings rate, or the percentage of income saved and invested, is a key factor in achieving FIRE.

FIRE strategies usually involve long-term investing in broad index funds and low-cost diversified portfolios.

The 4% rule is a guideline suggesting that you can withdraw 4% of your investment portfolio per year in retirement with a high probability of long-term sustainability.