Financial Independence / Retire Early

Practice the FIRE Path Before You Commit

Simulate the path to financial independence. Practice saving 50%+ of your income, investing aggressively, and building the portfolio that lets you retire early — all without risking your actual savings.

What is FIRE?

Financial Independence, Retire Early

FIRE is a movement built on a simple idea: save and invest aggressively so your investment returns cover your living expenses — making work optional. It's not about being lazy. It's about having the freedom to choose how you spend your time.

50%+
Savings Rate
Save half or more of your take-home pay
25x
The Target
Save 25 times your annual expenses
4%
Safe Withdrawal
Withdraw 4% of portfolio per year
10–15
Years to FIRE
Typical timeline with aggressive saving
FIRE Strategies

Four paths to FIRE. Test every one.

Each FIRE strategy has different requirements, timelines, and tradeoffs.CapitalLab lets you simulate each one with your income, expenses, and risk tolerance.

Lean FIRE

$600k–$1M portfolio

The minimalist path. Cut expenses to the bone, save aggressively, and retire on $25k–$40k/year. Requires significant lifestyle simplification but gets you to FIRE fastest.

  • Annual expenses under $40,000
  • Aggressive saving on modest income
  • Minimal lifestyle, maximum freedom
  • Fastest path but least margin for error

Fat FIRE

$2.5M–$5M portfolio

Retire early without compromising your lifestyle. Requires higher income or longer timeline, but you maintain the standard of living you're accustomed to.

  • Annual expenses of $100k–$200k
  • Requires high income or longer accumulation
  • Full lifestyle with no cutbacks
  • Most comfortable but hardest to achieve

Barista FIRE

$400k–$800k portfolio

Build enough investments to cover most expenses, then work a part-time or low-stress job to cover the gap. Combines partial financial independence with enjoyable work.

  • Part-time work covers remaining expenses
  • Lower savings target than full FIRE
  • Provides healthcare through employer
  • Great transition step toward full FIRE

Coast FIRE

Varies by age

Save enough early that compound growth alone will fund your traditional retirement. Then you only need to earn enough to cover current expenses — no more saving required.

  • Front-load savings in your 20s–30s
  • Compound growth does the heavy lifting
  • Only need to cover current expenses
  • Lowest ongoing stress of any FIRE path
The Math Behind FIRE

Your savings rate determines everything

The core math of FIRE is elegantly simple. Your savings rate — not your income — is the biggest factor in how quickly you reach financial independence. Someone saving 50% of a $60k salary reaches FIRE faster than someone saving 10% of a $200k salary.

The 25x Rule

Save 25 times your annual expenses. If you spend $40,000/year, your FIRE number is $1,000,000. Spend $60,000/year? You need $1,500,000.

The 4% Rule

Once you hit your number, withdraw 4% per year. Historically, a diversified portfolio survives 30+ years at this withdrawal rate, adjusted for inflation.

CapitalLab Lets You Test It

Run the 4% rule through 20 years of market volatility, life events, and inflation. See if your portfolio actually survives — or if you need to adjust.

Savings Rate vs. Years to FIRE

10%
51 years
20%
37 years
30%
28 years
40%
22 years
50%
17 years
60%
12.5 years
70%
8.5 years
80%
5.5 years

Assuming 7% real investment returns and expenses remaining constant.CapitalLab simulates realistic market conditions including volatility and life events.

Real Simulation Results

Typical outcomes for each FIRE strategy

These are representative outcomes from CapitalLab simulations. Your results will vary based on salary, expenses, investment choices, and market conditions.

Lean FIRE

Starting income$70k/year salary
Savings rate60%
Years to FIRE12 years
Portfolio at FIRE$750,000
Annual withdrawal$30,000

Fat FIRE

Starting income$150k/year salary
Savings rate50%
Years to FIRE17 years
Portfolio at FIRE$2,800,000
Annual withdrawal$112,000

Barista FIRE

Starting income$60k/year salary
Savings rate40%
Years to FIRE10 years
Portfolio at FIRE$400,000
Annual withdrawal$16,000 + part-time work

Coast FIRE

Starting income$80k/year salary
Savings rate50% (first 8 years)
Years to FIRE8 years to coast
Portfolio at FIRE$320,000 (grows to $1.2M by 65)
Annual withdrawal$48,000 (at traditional retirement)
Life After FIRE

Reaching FIRE is only half the battle. Staying there is the real test.

The biggest risk in FIRE isn't getting there — it's running out of money 20 years later. CapitalLab lets you simulate life after FIRE so you know your portfolio can handle whatever comes next.

Market Downturns

What happens when the market drops 30% in year 2 of your retirement? CapitalLab simulates bear markets, recessions, and recovery periods so you can stress-test your withdrawal strategy.

Unexpected Life Events

Medical emergencies, family changes, and surprise expenses don't stop when you retire. Practice handling $10k–$50k surprises without derailing your financial independence.

Inflation & Rising Costs

Your expenses in year 1 of FIRE won't be the same in year 15. CapitalLab models inflation and rising costs so you can plan for the long-term purchasing power of your portfolio.

Real Estate as a FIRE Buffer

Rental properties provide inflation-protected income that complements stock withdrawals. Practice building a portfolio that generates cash flow independent of market conditions.

Simulate your path to financial independence.

FIRE isn't just a dream — it's a math problem you can solve. Run your numbers through 20 years of simulation and discover exactly what it takes to make work optional.

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