🔥 FIRE Simulator

Assets at Retirement

39,42010k KRW

Estimated Depletion

26 years later

Simulation Guide

Simulates asset flow for 50 years based on your input. An upward trend after retirement means complete financial independence.

What Is FIRE?

FIRE (Financial Independence, Retire Early) is a financial movement built around one core idea: save and invest aggressively enough that the passive income generated by your portfolio covers your living expenses indefinitely. Once you reach that point, work becomes optional.

🔥 Your FIRE number: Annual expenses × 25 = the portfolio size needed to retire (based on the 4% withdrawal rule).

The 4% Rule

The 4% rule (also called the Safe Withdrawal Rate) is the foundation of FIRE planning. Research by William Bengen (1994) and the Trinity Study found that withdrawing 4% of your portfolio in year one and then adjusting annually for inflation has a historically high probability of lasting 30+ years without depleting the portfolio.

Example

If your annual expenses are ₩40M, your FIRE number is ₩40M × 25 = ₩1B. Once your portfolio reaches that figure, you can theoretically retire.

Important Caveat

The 4% rule is based on historical US stock market data. For longer retirements (40–50 years), some planners recommend a more conservative 3–3.5% withdrawal rate to reduce the risk of running out of money.

Types of FIRE

Lean FIRE

Retiring on a minimal budget — typically ₩30M/year or less. Requires extreme frugality, but the lower target makes the goal reachable much sooner.

Fat FIRE

Retiring with a comfortable, even generous lifestyle — usually ₩80M+/year. Requires a much larger portfolio but leaves room for travel, hobbies, and unexpected expenses.

Barista FIRE

A middle path: hit a partial FIRE number, then work part-time for supplemental income (and, in some countries, healthcare). Not fully retired, but no longer dependent on a full-time job.

The Two Levers: Savings Rate & Investment Return

Time-to-FIRE is determined almost entirely by two variables: your savings rate (the percentage of income you save) and your investment return.

Savings rate matters most. Lifting your savings rate from 20% to 50% can shave 15+ years off your retirement timeline.
Returns compound over time. Even a 1% difference in annual return creates a massive gap over 20–30 years.
Spending less is as powerful as earning more. A lower target spend reduces both your current outflows (numerator) and your FIRE number (denominator) at the same time.

* This simulator uses simplified assumptions. Actual outcomes depend on market volatility, inflation, taxes, and personal circumstances. Not financial advice.

Frequently Asked Questions

Q. What is FIRE?

Financial Independence, Retire Early. Having enough assets that work becomes optional because income from them covers your lifestyle indefinitely.

Q. What's the 4% rule?

From the US Trinity Study: withdrawing 4% of your portfolio in year one (then adjusting for inflation) historically lasts 30+ years. Required nest egg = annual spend × 25.

Q. How much for $30k/year spend?

4% rule: $750k. More conservative 3.5% rule (28.5×): $857k. The simulator does the math for your target spend.

Q. What flavours of FIRE exist?

Lean FIRE (~$300-500k), Fat FIRE ($1.5M+), Coast FIRE (compound to retirement and stop saving), Barista FIRE (part-time work). The simulator works for any flavour.

Q. Is FIRE realistic in Korea?

Tougher than the US/EU because of housing, education, and healthcare costs, but increasingly achievable for single-income, dual-income, or expat households. Test your scenario in the simulator.

Q. Does the 4% rule break in a crash?

Sequence-of-returns risk in the early retirement years is the main threat. Mitigations: drop to 3.5%, raise bond allocation, hold 2-3 years of cash buffer.

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