Question 1

What is FIRE (Financial Independence, Retire Early)?

Accepted Answer

FIRE stands for Financial Independence, Retire Early. It's a financial movement focused on aggressive saving and investing to achieve financial independence and potentially retire much earlier than traditional retirement ages.

Question 2

What are the different types of FIRE?

Accepted Answer

There are 5 main types of FIRE: Lean FIRE (minimal expenses), Regular FIRE (current expenses), Fat FIRE (higher spending), Coast FIRE (enough invested to coast), and Barista FIRE (part-time work while investments grow).

Question 3

How much house can I afford?

Accepted Answer

Generally, your mortgage payment shouldn't exceed 28% of gross monthly income (front-end ratio), and total debt shouldn't exceed 43% (back-end ratio). Our calculator considers income, debts, down payment, and interest rate.

Question 4

What is the 4% rule for retirement?

Accepted Answer

The 4% rule suggests withdrawing 4% of your portfolio in year one, then adjusting for inflation. This means you need approximately 25 times your annual expenses saved (expenses × 25 = FIRE number).

Question 5

When does PMI drop off a mortgage?

Accepted Answer

PMI must be automatically cancelled at 78% LTV. You can request cancellation at 80% LTV with good payment history. PMI is required when down payment is less than 20%.