FIRE Movement Model & 4% Rule
The FIRE (Financial Independence, Retire Early) framework targets early financial freedom, where investment income covers annual living expenses.
1. The 4% Rule & Safe Withdrawal Rate (SWR)
$$C_{\text{target}} = \frac{\text{Annual Expenses}}{\text{SWR}} = \text{Annual Expenses} \times 25$$
Screenshot: FIRE calculator with expense sliders and projected retirement age forecast
2. Savings Rate
$$\text{Savings Rate} = \frac{\text{Income} - \text{Expenses}}{\text{Income}} \times 100\%$$