Name: TheFIREPlan
Author: TheFIREPlan

Question 1

What is a FIRE calculator?

Accepted Answer

A FIRE calculator helps you determine how much money you need to achieve Financial Independence and Retire Early. It models your savings rate, investment returns, expenses, and withdrawal strategies to project when you can safely retire.

Question 2

What is the 4% rule in retirement planning?

Accepted Answer

The 4% rule is a withdrawal strategy suggesting you can safely withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each year. It is based on the Trinity Study and historical market data. However, many modern planners recommend flexible withdrawal strategies like VPW or Guyton-Klinger guardrails for better safety.

Question 3

How does a Monte Carlo simulation help with retirement planning?

Accepted Answer

Monte Carlo simulations run thousands of randomized market scenarios to stress-test your retirement plan. Instead of assuming a single average return, it shows the probability of your portfolio surviving based on historical volatility, sequence of returns risk, and your specific asset allocation.

Question 4

What is Coast FIRE?

Accepted Answer

Coast FIRE is when you have saved enough that your investments will grow to your retirement target by your desired retirement age without additional contributions. You can 'coast' — covering only living expenses with your job while your investments compound on their own.

Question 5

Is TheFIREPlan free to use?

Accepted Answer

Yes, TheFIREPlan is completely free. All core features — the FIRE calculator, Monte Carlo simulations, trajectory charts, portfolio tracking, and basic AI assistance — are available at no cost. Advanced analytics are available on the Pro dashboard.