Back to Help

FIRE Planning and Projections

What Is FIRE?

FIRE stands for Financial Independence, Retire Early. The idea is to save and invest aggressively so that your investment returns can cover your living expenses indefinitely — without needing to work.

How Cisti Finance Helps

The FIRE planner projects when you could reach financial independence based on:

  • Your current net worth.
  • Your monthly savings rate.
  • Your expected annual investment return.
  • Your target annual spending in retirement (your "FIRE number").

Your FIRE Number

Your FIRE number is typically 25× your expected annual spending in retirement. This is based on the 4% safe withdrawal rate — historically, withdrawing 4% per year from a diversified portfolio has been sustainable indefinitely.

For example, if you need €30,000/year in retirement, your FIRE number is €750,000.

The FIRE Projection Chart

The projection chart shows your projected net worth over time if you continue saving at your current rate. It marks:

  • FIRE date — when your net worth is projected to reach your FIRE number.
  • Coastfire — the point at which you could stop contributing and let investment returns alone grow your net worth to your FIRE number by retirement age.

Liquidity Ratio

The Liquidity page shows what percentage of your FIRE number you've already accumulated. A ratio of 100% means you've reached financial independence.

Tips

  • Increasing your savings rate has a bigger impact than investment returns for most people.
  • Even a 1% increase in annual return meaningfully changes your FIRE date over 20+ years.
  • Review your FIRE projections when your income or spending changes significantly.

FIRE projections are illustrative only. Actual investment returns are not guaranteed. This does not constitute financial advice.