BacktestFolio · Glossary
FIRE
In plain language
FIRE is not necessarily about stopping work — it is about reaching a point where work is a choice rather than a necessity. The key question: how much wealth do you need to sustain your lifestyle with a prudent withdrawal rate for decades?
Technical definition
Financial Independence, Retire Early: a movement aimed at financial independence and early retirement through high savings rates, systematic investing and sustainable withdrawals. The '25x rule' (accumulate 25 times annual expenses) is the practical expression of the 4% SWR.