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FIRE number for $120,000 a year
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$3,000,000
needed to spend $120,000/year ($10,000/month) at a 4% safe withdrawal rate
By withdrawal rate
| Withdrawal rate | Portfolio needed |
|---|---|
| 3% | $4,000,000 |
| 3.5% | $3,428,571 |
| 4% | $3,000,000 |
| 4.5% | $2,666,667 |
| 5% | $2,400,000 |
Lower rates are safer for retirements longer than 30 years. Pension or Social Security income reduces the amount you need: subtract it from spending before multiplying.
Years to reach $3,000,000 (5% real return)
| Annual savings | From $0 | From $100k |
|---|---|---|
| $20,000/yr | 44 years | 40 years |
| $30,000/yr | 37 years | 34 years |
| $40,000/yr | 32 years | 30 years |
| $50,000/yr | 29 years | 27 years |
| $75,000/yr | 23 years | 22 years |
| $100,000/yr | 19 years | 18 years |
Run your own numbers with the FIRE calculator or Coast FIRE calculator.
FAQ
How much do I need to retire on $120,000 a year?
Using the 4% rule you need about $3,000,000 invested (25 × $120,000). A more cautious 3.5% rate requires $3,428,571.
How long to save $3,000,000?
Starting from zero and saving $40,000 a year at a 5% real return takes about 32 years.
Other spending levels
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