Retirement planning: How to adopt FIRE model to retire early, achieve financial security

economictimes.indiatimes.com:

financial independence, retire early) movement.

The FIRE model originated in 1992 with Your Money or Your Life, a book by Vicki Robin and Joe Dominguez, which talked about the pursuit of financial independence to gain control over one’s life. In 1994, Financial Planner William Bengen introduced the 4% rule, which proposed that one could safely withdraw 4% of one’s investment portfolio annually in retirement without depleting one’s savings. This became another core element of FIRE planning.

While still in its nascent stage in India, some people have managed to make it a reality. What was once regarded as an unattainable aspiration is now within reach for many who are considering financial independence to shape their lives.
Take Mumbai-based Dipen Kanabar, who took retirement two years ago when he was 49.

“Retiring in my 40s allowed me to leave my demanding corporate job and spend more time with my family,” says the 51-year-old who now runs an NGO. While many people may be FIRE-d up to hang their boots, it’s a journey lit with challenges and mistakes, not only at the preretirement stage, but also after quitting work. Besides the difficulty in amassing a corpus large enough to sustain long into retired life, one must also plan how to sustain and use it in retirement.