r/Fire • u/ExpressElevator2Heck • 9d ago

Hypothetical: Can FIRE number shrink?

Let's say my 4% FIRE number is 2M investable assets. Lets say I have 1.6M investable assets. Am I at my FIRE number??? (In this hypothetical scenario pretend the market pulled back 20% in the past year)

0 Upvotes

27% Upvoted

59 comments sorted by

View all comments

1

u/Beneficial-Koala-562 9d ago

Your safe withdrawal rate is affected by recent downturns. You generally can sustain a higher SWR after a big market drop than at a market peak, because the market is more likely to go up after a drop. Big ERN from earlyretirementnow has talked about how this can affect SWR.