Question 1

What is a FIRE number?

Accepted Answer

Your FIRE (Financial Independence, Retire Early) number is 25 times your expected annual expenses. If you plan to spend $50,000/year in retirement, you need $1,250,000 saved. This is based on the 4% safe withdrawal rate — the rate at which your portfolio is likely to last 30+ years.

Question 2

What return rate should I use?

Accepted Answer

A 6–7% annual return is considered a conservative long-term average for a diversified portfolio of stocks and bonds, after inflation. The historical average of the US stock market is approximately 7% real (inflation-adjusted). If you're more conservative, use 5%; for a stocks-only portfolio, 7–8% is commonly used.

Question 3

What is a good savings rate?

Accepted Answer

Most financial experts recommend saving at least 15% of your income for a traditional retirement. To retire significantly earlier (before 60), you'll likely need a 30–50% savings rate. Even increasing from 10% to 20% can shave 7–10 years off your working timeline.

Question 4

Does this calculator account for Social Security?

Accepted Answer

This simplified calculator does not include Social Security, pensions, or other income sources. To estimate your Social Security benefit, visit the SSA's official website. Adding Social Security income (even partially) to your retirement income can significantly reduce the nest egg you need to accumulate.

Question 5

What is the 4% rule?

Accepted Answer

The 4% rule (from the Trinity Study) suggests you can safely withdraw 4% of your retirement portfolio in year one, then adjust for inflation each year, with a high probability of the portfolio lasting 30 years. It's a widely-used baseline — conservative planners sometimes use 3.5% for extra margin; those comfortable with some risk might use 4.5%.

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