Thursday, January 21, 2021

Types of FIRE - Financial Independence and Retire Early

 Types of FIRE

  1. Lean FIRE - 1-1.25 million USD
    • At 4% withdrawal rate, this leads to 40k to 50k annual income
    • At 3% withdrawal rate, this leads to 30k to 37.5k annual income
    • At 2% withdrawal rate, this leads to 20k to 25k annual income
  2. India FIRE - 1.5 million - 10 crores INR
  3. FIRE - 2.5-3 million USD
    • At 4% withdrawal rate, this leads to 100k to 120k annual income
    • At 3% withdrawal rate, this leads to 75k to 90k annual income
    • At 2% withdrawal rate, this leads to 50k to 60k annual income
  4. FAT FIRE - 4-5 million USD
    • At 4% withdrawal rate, this leads to 160k to 200k annual income
    • At 3% withdrawal rate, this leads to 120k to 150k annual income
    • At 2% withdrawal rate, this leads to 80k to 100k annual income
  5. Silicon Valley FIRE - 8-10 million USD
    • 3 million+ is tied up in the primary home
    • Rest is same as FAT FIRE



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