this post was submitted on 17 Jun 2023
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FIRE (Financial Independence Retire Early)
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FIRE is a lifestyle movement with the goal of gaining financial independence and retiring early.
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I mean, if you’ve been FIRE’d a few years, you’ve lived at/below your SWR rate, and your portfolio has grown at all, you’re pretty much past the worst of the SORR. Leave your bonds (if applicable) in a bond index fund and your stocks in VTSAX or similar.
If I met the above conditions, I’m setting my portfolio to < 5% bonds, turning off reinvesting dividends, and then the only thing really left to do is withdraw monthly, quarterly, twice a year, or annually to meet your spending needs and/or target income level for healthcare subsidies or whatever.
Maybe it’s more complex then that (can’t speak from experience) but there isn’t really a ton to do. Live your life.
Why turn off reinvesting dividends?
It's typical if you're in the draw-down phase: better to spend the dividends than to sell (more) equities.