FIRE Number
The size of portfolio you need to be financially independent — often about 25 times your annual expenses.
Your FIRE number is the target amount of invested assets that would let your portfolio sustainably cover your yearly spending. Using the 4% rule as a shortcut, it is commonly estimated as 25 times your annual expenses, though a more conservative multiple may be prudent for long retirements.
Examples
- Annual expenses of $40,000 imply a FIRE number of roughly $1,000,000 (25 × 40,000).