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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Related terms
The baseline flavor of FIRE — middle-class lifestyle, roughly $40–80K/year expenses, $1M–$2M portfolio. Between Lean and Chubby.
A hybrid state where your portfolio covers most (but not all) expenses via a conservative withdrawal, and you work part-time for the rest — often for the health benefits.
Financial Independence, Retire Early. A movement focused on aggressive saving and investing to stop working for money decades before traditional retirement. The classic target is 25× your annual expenses.
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.
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