Question 1

What is my FIRE number if I spend ₹50,000 per month?

Accepted Answer

At a standard 6% inflation compounded over 10 years, your monthly expense of ₹50,000 grows significantly in purchasing power terms. At the India-safe 3% withdrawal rate (33× expenses), your FIRE number is ₹3.6 Crore. At the global 4% rule (25× expenses), it is ₹2.7 Crore.

Question 2

Should I use the 3% or 4% withdrawal rule in India?

Accepted Answer

The 4% rule was designed for US equity markets with lower structural inflation. India's inflation typically runs at 5-7%, making a 3% withdrawal rate much safer for long retirements. The difference is significant: your corpus target jumps from ₹2.7 Crore (4% rule) to ₹3.6 Crore (3% rule). If you're retiring before 50 with a 40+ year horizon, the 3% rule is strongly recommended.

Question 3

How much should I invest monthly to reach FIRE by 40?

Accepted Answer

To accumulate ₹3.6 Crore by age 40 at a 12% annual return, you need to invest approximately ₹1.5 Lakh per month starting today. Using a Step-Up SIP — where you increase your monthly contribution by 10% every year — you can achieve this with a lower initial investment.

Question 4

How does retiring 5 years earlier impact my FIRE corpus?

Accepted Answer

Retiring 5 years earlier at 35 instead of 40 has a compounding impact: your corpus target rises to ₹2.7 Crore, and you need to build it in less time, requiring approximately ₹3.2 Lakh monthly — compared to ₹1.5 Lakh for 40. Every year of delay in starting your FIRE journey costs disproportionately more.

FIRE Calculator: Retire at 40 in India

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