Your target portfolio size to be financially independent. Usually calculated as annual expenses ÷ withdrawal rate. At a 4% SWR, $40K in annual expenses means a $1M FIRE number.
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Related terms
The guideline that you can safely withdraw 4% of your portfolio in year one of retirement and adjust for inflation each year after, and historically your money will last 30+ years. Based on the Trinity Study.
The middle ground between Regular FIRE and Fat FIRE — roughly $2.5M portfolio supporting $80–100K/year spending.
A softer framing of FI: you keep earning because you want to, not because you need to. Emphasizes freedom of choice over dropping out of the workforce.
The percentage of a portfolio you can withdraw annually with high probability of not running out. Common targets range from 3.25% (ultra-safe) to 4.5% (aggressive).
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