FIRE (Financial Independence, Retire Early)
A movement built around saving and investing aggressively enough to make work optional decades before traditional retirement age.
FIRE stands for Financial Independence, Retire Early. It describes a goal and a community: build enough invested assets that the income they generate can cover your living expenses, so paid work becomes a choice rather than a necessity — often in your 40s or 50s rather than your mid-60s.
The mechanics are straightforward even if the execution is hard. You raise your savings rate (the share of income you invest rather than spend), let compounding work over time, and aim for a portfolio large enough that a sustainable withdrawal each year covers your costs. The higher your savings rate, the sooner you reach the target.
FIRE isn't one fixed lifestyle. People pursue it at very different spending levels — see Lean FIRE, Fat FIRE, Coast FIRE, and Barista FIRE — and the right version depends entirely on your own numbers and what you want your time to look like.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.