What is a FIRE number?
A FIRE number is the invested amount you need for your investments to cover your yearly spending, often 25 times annual spending.
The common formula is annual spending divided by a safe withdrawal rate. At 4% that is 25 times what you spend each year. A lower rate such as 3.5% gives a bigger, more cautious target.
In New Zealand the number can shrink once NZ Super starts at 65, but you still need enough outside KiwiSaver to cover any years before 65 if you stop work early.
Example
Spending $60,000 a year at a 4% withdrawal rate gives a FIRE number of $1.5 million.
In Fireball
Fireball starts at a 4% withdrawal rate, lets you change it and adjusts the target for NZ Super and the years before KiwiSaver can be accessed.
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