FIRE
Full form: Financial Independence Retire Early
RetirementFIRE is a movement where individuals save and invest aggressively (50-70% of income) to retire decades early, living off investment returns. Corpus target: 25x annual expenses (4% withdrawal rate).
In detail
Variants: LeanFIRE (frugal lifestyle), FatFIRE (comfortable lifestyle), BaristaFIRE (semi-retire with part-time income), CoastFIRE (enough invested to reach retirement at normal age without more contributions). India-specific risks: 5-6% inflation, 14%/year healthcare cost growth, no social security, longevity of 50-year retirement.
Formula
FIRE corpus = Annual expenses x 25nRs 60K/month = Rs 60K x 12 x 25 = Rs 1.8 Cr corpus
Real-life example
🇮🇳 India example
Priya, 32, spends Rs 50,000/month. FIRE target Rs 1.5 Cr. Current corpus Rs 40L at 12% CAGR -- this is CoastFIRE. No more contributions needed, reaches Rs 1.5 Cr at age 47.
Frequently asked questions
Is FIRE realistic in India at 40? ▼
Yes for high-income professionals saving Rs 15L+/year from age 30. Key risk: healthcare inflation and joint family obligations.