Origin Dictionary / OD-020
FIRE
Retiring at 35 gives the plan a very long shift.
01Dictionary Meaning
FIRE stands for Financial Independence, Retire Early: an approach that aims to build enough resources to make paid work optional earlier than conventional retirement.
02What People Think
"Hit the number. Never worry about money again."
03What’s Underneath
Spending less and investing a substantial share of income can shorten the distance to a target. But the target rests on assumptions about spending, returns and how long the money must last.
Withdrawals during a market decline can leave fewer assets participating in a recovery. Future housing, family and health needs may also differ from the life used to build the spreadsheet.
FIRE describes an ambition and a family of approaches. It does not supply a universal withdrawal rate or a guaranteed finish line.
04The Game
How does the plan change when the market, the household or the desired life stops matching the original assumptions?
05One Line
The earlier you retire, the longer your money has to show up for work.
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M2Mature Individuals
Test the assumptions behind making work optional.