Plan for financial independence
Use FIRE to see your FIRE number, how far along you are, and the age you could reach financial independence.
FIRE stands for financial independence, retire early. Financial independence is the point where your investments can pay for your spending, so working becomes a choice.
FIRE in Finsplore works out your FIRE number: the amount you need invested to fund your spending in retirement. It then shows how close you are, when you could get there, and what would close the gap. Use it to see whether your current saving gets you where you want to be, and what to change if it does not.
Before you start
FIRE needs your age to measure how long you have. The first time you open it, you may see We need your date of birth.
- Click Add your date of birth.
- In Planning assumptions, enter your Birth date, or your age in Or your age today.
- Check your Target FIRE age, the age you would like to reach financial independence by. It starts at 45.
- Go back to FIRE.
Your changes save as you make them. See Set your planning assumptions.
FIRE also uses your spending and how much you invest each month. If it asks for either, click the button it shows and enter the amount.
Read your results
Your FIRE number is the amount you need invested to fund your retirement spending at your withdrawal rate. Under it, a bar shows how far along you are, and a status shows whether you are On track.
| Figure | What it means |
|---|---|
| Projected at your target age | How much you are projected to have invested by your target age. |
| Gap, adjusted for inflation | The difference between that and your FIRE number, in today's money. |
| You reach it at | The age and date you are projected to reach your FIRE number. |
| Contribution that hits the target | How much you would need to invest each month to reach it by your target age. |
Further down, you can see:
- Your trajectory: a chart of your investments growing towards your FIRE number, shown as a dashed line.
- Year by year: each year's opening balance, what you put in, what it earned and where it closes.
- What counts as your FIRE capital: the investments FIRE counts. Your home and your emergency fund are left out, so the number reflects money you could draw on.
- What would close the gap: three ways to get there, such as investing more each month, retiring at a later age, or spending less in retirement.
- What this is built on: every assumption used, and where it came from.
Super
FIRE counts your super, but you cannot usually access super until your preservation age. FIRE checks whether your money outside super lasts until you can reach your super, and tells you if there is a shortfall.
Change your plan
Click Adjust your plan to change the age you retire at, your monthly spending in retirement, how much you invest each month, your withdrawal rate, expected return or inflation. Click Save and your results update.
Switch between Adjusted for inflation and dollars of your target year to see the figures in today's money or in future dollars.
FIRE is a projection on the assumptions listed, not financial advice. Real returns, inflation and your circumstances will differ. Consider speaking to a licensed financial adviser before making financial decisions.
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