Markets have been rallying recently and a lot of people are hitting their FIRE targets. But curious if there's a general timeframe of how long you need to be at your FIRE target before you actually retire. 6 months? 1 year? 2 years? I know it also depends on the volatility of your holdings.
When do you feel comfortable knowing you reached your FIRE target?
byu/lostpilot infinancialindependence
Posted by lostpilot
6 Comments
? If you hit your FIRE target, you can retire. It’s literally what the acronym means.
If you’re worried about SORR or not having enough money, you have a problem with your target.
It also depends on whether you decide to move your goalposts. I took ER two decades after hitting my original target.
Volatility is already factored in to your asset allocation and SWR. You do not need to sit at a certain asset level for a certain period of time for it to become real. Reaching FI may merit rethinking the asset allocation, i.e. switching from an accumulation allocation which may be 100% stocks to a more decumulation oriented allocation that includes some diversifying assets, you can do this over time as you approach FI or all at once or whatever.
Generally two weeks as a courtesy to your employer.
You should have been reallocating from growth portfolio to sustainable withdrawal portfolio in the years before reaching the FI number. So it shouldn’t be an issue.
I dont plan on retiring early immediately when financially independent. To me they are 2 seperate events