1. FIRE means Financial Independence, Retire Early

The idea is to build enough investable assets that work becomes optional earlier than conventional retirement age.

Tip: The “retire” part can mean changing work, not doing nothing.

2. A common shortcut starts from annual spending

If long-term annual spending is ₹12 lakh, a rough 25x heuristic suggests ₹3 crore. This comes from a 4% initial-withdrawal concept used in historical research.

Note: Illustrative only; 25x is not a guarantee.

3. India-specific assumptions can change the number

Inflation, taxes, asset allocation, healthcare, retirement length and sequence of returns can make the safe withdrawal rate higher or lower than a simple rule.

Tip: A 50-year retirement needs more caution than a 20-year retirement.

4. Separate one-time goals from annual living expenses

Children’s education, house purchase, large medical reserves or other planned capital expenses may need separate funding rather than being hidden inside a simple annual-spend multiple.

Tip: FI corpus and goal buckets should be designed together.

5. Quick check

Annual long-term spending is ₹10 lakh. What does the simple 25x heuristic suggest?