FIRE Glossary
30 essential FIRE terms — from Coast FIRE and the 4% Rule to Geo-Arbitrage and Roth Conversion Ladder. Definitions, worked examples, and how to apply each to your plan.
Wyświetlono 30 z 30 pojęć
FIRE
FIRE stands for Financial Independence, Retire Early, a lifestyle and savings strategy where you accumulate enough invested assets that work becomes...
Czytaj definicję →
Coast FIRE
Coast FIRE is the point where your existing investments, left untouched, will grow to a full FIRE number by traditional retirement age, meaning you no...
Czytaj definicję →
Barista FIRE
Barista FIRE is a semi-retired state in which your portfolio covers most but not all of your expenses, and you work part-time, historically at a job like...
Czytaj definicję →
Lean FIRE
Lean FIRE is financial independence achieved at a frugal spending level, typically under $40,000/year per person in the US, or roughly the national median...
Czytaj definicję →
Fat FIRE
Fat FIRE is financial independence designed around a comfortable or luxurious spending level, typically $100,000 to $250,000+ per year, requiring a...
Czytaj definicję →
Chubby FIRE
Chubby FIRE is the comfortable middle ground between Lean and Fat FIRE, an annual spending target of roughly $80,000 to $120,000 per household, that funds...
Czytaj definicję →
Safe Withdrawal Rate (4% Rule)
The Safe Withdrawal Rate (SWR), popularized as the "4% rule", is the annual percentage of a retirement portfolio you can spend in year one (then adjust for...
Czytaj definicję →
25x Rule
The 25x Rule is a FIRE shortcut stating that your FI Number equals 25 times your expected annual expenses, the arithmetic inverse of a 4% Safe Withdrawal...
Czytaj definicję →
Crossover Point
The Crossover Point is the moment when monthly investment income from your portfolio exceeds your monthly expenses, the tipping point after which your money...
Czytaj definicję →
Geo-Arbitrage
Geo-arbitrage meaning: earn in a strong currency, spend where costs are low, and reach FIRE years sooner. Includes real estate strategy and examples.
Czytaj definicję →
Early Retirement
Early Retirement means permanently leaving full-time paid work before the traditional age of 65, typically anywhere from the late 30s to the late 50s, ...
Czytaj definicję →
Financial Independence
Financial Independence (FI) is the state in which your passive income from investments, rentals, and other non-labor sources fully covers your living...
Czytaj definicję →
Passive Income
Passive Income is recurring revenue that requires little to no ongoing active work to maintain, dividends, interest, rental income, royalties, and capital...
Czytaj definicję →
FI Number
The FI Number is the total invested-asset value required to sustainably cover your annual expenses indefinitely, the headline goal of any FIRE plan.
Czytaj definicję →
Expense Ratio
An Expense Ratio is the annual fee a mutual fund or ETF charges, expressed as a percentage of assets under management, deducted silently from returns and...
Czytaj definicję →
Sequence of Returns Risk
Sequence of Returns Risk is the danger that poor market returns in the early years of retirement will permanently impair your portfolio, even if the...
Czytaj definicję →
Bond Tent
A Bond Tent is a retirement glide path where you temporarily raise your bond allocation around the retirement date, then gradually reduce it over the first...
Czytaj definicję →
Roth Conversion Ladder
A Roth Conversion Ladder is a US tax strategy where early retirees annually convert Traditional IRA or 401(k) funds to a Roth IRA, paying income tax now at...
Czytaj definicję →
Mega Backdoor Roth
The Mega Backdoor Roth is a US tax strategy that lets high earners contribute tens of thousands of after-tax dollars per year to a Roth account by exploiting...
Czytaj definicję →
HSA for FIRE
A Health Savings Account (HSA) used for FIRE is a triple-tax-advantaged investment vehicle, tax-deductible contributions, tax-free growth, and tax-free...
Czytaj definicję →
SEPP/72(t)
SEPP (Substantially Equal Periodic Payments), governed by IRS Rule 72(t), is a US provision that lets you withdraw from a Traditional IRA or 401(k) before...
Czytaj definicję →
Rule of 55
The Rule of 55 is a US provision that allows penalty-free withdrawals from your current employer's 401(k), but not prior employers' plans or IRAs, if you...
Czytaj definicję →
Die With Zero
Die With Zero is a retirement philosophy, popularized by Bill Perkins' book of the same name, arguing that maximum life utility comes from spending your...
Czytaj definicję →
Sabbatical FIRE
Sabbatical FIRE is the practice of taking extended breaks from work, typically 6 to 24 months, funded by savings rather than a full portfolio, then...
Czytaj definicję →
Mini-Retirement
A Mini-Retirement is a deliberately taken break of typically 1 to 12 months between jobs or careers, popularized by Tim Ferriss in The 4-Hour Workweek, ...
Czytaj definicję →
Slow FI
Slow FI is a philosophy of pursuing Financial Independence at a deliberately unhurried pace, accepting a longer timeline to FIRE in exchange for a more...
Czytaj definicję →
Flamingo FI
Flamingo FI is an FI strategy where you aggressively save to reach half of your full FI Number, then stop contributing entirely and let compounding alone...
Czytaj definicję →
Coast Number
A Coast Number is the invested-asset balance that, left entirely alone and compounding, will grow to your full FI Number by a chosen target retirement age.
Czytaj definicję →
FIRE Movement
The FIRE Movement is the global community and cultural phenomenon, primarily online, dedicated to achieving Financial Independence and Retire Early through...
Czytaj definicję →
Mustachianism
Mustachianism is the FIRE sub-philosophy founded by Pete Adeney, aka Mr.
Czytaj definicję →Brak pojęć pasujących do wyszukiwania.
Pojęcia FIRE, wyjaśnione
- Czym jest arbitraż geograficzny?
- Arbitraż geograficzny oznacza zarabianie w mocnej walucie lub dobrze płatnym rynku przy jednoczesnym mieszkaniu tam, gdzie koszty są niższe. Może znacząco obniżyć Twoją liczbę FI, ponieważ ten sam styl życia kosztuje mniej w tańszej lokalizacji.
- Czym jest Coast FIRE?
- Coast FIRE to moment, w którym zainwestowałeś już tyle, że przy normalnym wzroście rynku i bez dalszych wpłat Twoje oszczędności osiągną liczbę FI do tradycyjnego wieku emerytalnego. Nadal pracujesz, by pokryć bieżące wydatki, ale nie musisz już oszczędzać na emeryturę.
- Czym są Barista, Lean i Fat FIRE?
- Lean FIRE oznacza emeryturę przy skromnym, oszczędnym budżecie. Fat FIRE oznacza emeryturę z hojnym budżetem i większym komfortem. Barista FIRE to droga pośrednia, gdzie praca dorywcza lub na część etatu pokrywa część wydatków, często dla świadczeń, a inwestycje pokrywają resztę.