StrategyFIRE glossary
Defined termSinking Fund
Saving small amounts monthly for a large known future expense (car, vacation, new roof). Keeps your investment portfolio from getting raided.
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Rule of 25
Quick FIRE-number estimate: multiply annual expenses by 25 (the inverse of a 4% SWR). $50K/year × 25 = $1.25M target.
Glide Path
How your asset allocation changes over time — typically shifting from stock-heavy to more bonds as you approach and enter retirement.
Bucket Strategy
Splitting retirement assets into three "buckets": short-term cash (1–2 years), medium-term bonds (3–10 years), and long-term stocks (10+). Refill each bucket from the next one in good market years.
Bond Tent
Gradually increasing your bond allocation in the years leading up to retirement, then reducing it again after — a "tent" shape — to buffer against sequence risk.
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