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FIRE stands for Financial Independence, Retire Early. It's a movement focused on aggressive saving and investing (typically 50-70% of income) to build enough wealth to retire decades earlier than traditional retirement age. The goal is to accumulate approximately 25x your annual expenses, allowing you to live off investment returns.
The 4% Rule suggests you can safely withdraw 4% of your investment portfolio in your first year of retirement, then adjust for inflation each year after. Based on historical stock market data, this withdrawal rate has a high probability of lasting 30+ years. For example, with a $1 million portfolio, you could withdraw $40,000 per year. Our FIRE Calculator uses this rule to estimate your retirement needs.
A common target is 25x your annual expenses. If you spend $40,000/year, you'd need $1 million. If you spend $60,000/year, you'd need $1.5 million. Use our Advanced FIRE Calculator to factor in taxes, Social Security, and different retirement phases for a more accurate estimate.
We offer several free financial calculators:
No. All calculations happen directly in your browser. We don't store, transmit, or have access to any numbers you enter. Your financial data never leaves your device.
It depends on your situation. Generally, buying makes more sense if you plan to stay 5+ years, have a stable income, and have savings beyond the down payment. Renting offers flexibility and fewer responsibilities. Our Rent vs Buy Calculator can help you compare the true costs, including opportunity cost of your down payment.
A common guideline is keeping your housing costs (mortgage, taxes, insurance) under 28% of your gross income, and total debt payments under 36%. Our Mortgage Calculator helps you see the full picture, including PMI if your down payment is under 20%.
Private Mortgage Insurance (PMI) is required when you put down less than 20% on a conventional loan. It typically costs 0.5-1% of the loan amount annually. You can avoid it by putting 20% down, or remove it once you reach 20% equity. Some loan programs (VA, certain first-time buyer programs) don't require PMI.
Avalanche: Pay off highest interest rate debt first. Mathematically optimal—saves the most money on interest. Snowball: Pay off smallest balance first. Provides quick wins and psychological momentum. Use our Debt Payoff Calculator to see how each strategy affects your payoff timeline.
A simple budgeting framework: allocate 50% of after-tax income to needs (housing, utilities, groceries), 30% to wants (entertainment, dining out), and 20% to savings and debt payoff. Our Budget Planner helps you categorize your spending and see where you stand.
Generally 3-6 months of essential expenses. If you have variable income, are self-employed, or work in an unstable industry, aim for 6-12 months. Our Emergency Fund Calculator gives personalized recommendations based on your situation.
401(k): A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their salary before taxes are taken out. Contributions grow tax-deferred until withdrawal, typically during retirement. Employers may also offer matching contributions, enhancing the growth potential of your investments.
Roth IRA: A Roth Individual Retirement Account (IRA) is a personal retirement savings account where contributions are made with after-tax dollars. The key advantage is that both contributions and earnings can be withdrawn tax-free in retirement, provided certain conditions are met. Roth IRAs offer more investment options compared to 401(k)s but have income limits for eligibility.
A taxable investment account is a brokerage account that allows you to invest in various securities like stocks, bonds, mutual funds, and ETFs without the tax advantages of retirement accounts. While there's no limit to how much you can contribute, earnings from investments (dividends, interest, and capital gains) are subject to taxes in the year they are realized. These accounts offer flexibility for saving and investing beyond retirement.
Consider a 401(k) if:
Consider a Roth IRA if:
Many financial advisors recommend contributing enough to your 401(k) to receive the full match and then contributing to a Roth IRA to diversify your tax situation in retirement.
401(k) Contribution Limits for 2025:
Roth IRA Contribution Limits for 2025:
Note: Contribution limits are subject to change based on IRS updates. Always consult the latest IRS guidelines or a financial advisor for current limits.
If your income exceeds the eligibility limits for contributing directly to a Roth IRA, you can utilize a Backdoor Roth IRA. This involves making a nondeductible contribution to a traditional IRA and then converting those funds to a Roth IRA. This strategy allows high-income earners to take advantage of Roth IRA benefits despite income restrictions. It's important to consult with a tax professional to navigate the rules and potential tax implications.
Yes, you can contribute to both a 401(k) and a Roth IRA in the same year, provided you meet the eligibility requirements for each account. Contributing to both allows you to diversify your tax-advantaged savings, balancing pre-tax and after-tax contributions to optimize your tax situation in retirement.
Increasing your contributions over time, such as by a set percentage annually, can significantly enhance your investment growth due to the power of compound interest. This strategy helps you gradually save more without a sudden impact on your budget, potentially leading to a larger retirement nest egg and greater financial security.
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Roth IRA:
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Employer matching is a benefit where your employer contributes additional funds to your 401(k) based on your own contributions. For example, an employer might match 50% of your contributions up to 6% of your salary. This effectively increases your total retirement savings and offers an immediate return on your investment. It's advisable to contribute at least enough to receive the full match to maximize this benefit.