FIRE = Financial Independence, Retire Early
Question: Are you or a loved one in your 20’s and wanting to retire in your 50’s rather than your 70’s? Read on
Question: Have you ever heard of FIRE advice? Then read on
FIRE advising means providing financial planning and strategy advice to help you:
Build enough savings and investments to achieve financial independence (i.e., not relying on a job for income)
Retire earlier than the traditional retirement age (often in their 40s–50s instead of 60s–70s)
Manage money strategically to sustain their lifestyle after early retirement.
Typical FIRE advising topics include:
🔸 Budgeting and cutting expenses
🔸 Increasing income and savings rate (often 30%–50% of income)
🔸 Investing (often in low-cost index funds, real estate, or other passive-income streams)
🔸 Tax optimization
🔸 Safe withdrawal strategies
🔸 Contingency planning for healthcare, inflation, or market downturns.
This is REAL financial planning work!
FIRE advising refers to getting personalised guidance or education on how to structure your finances so you can achieve financial independence and retire early — often years or decades before the traditional retirement age.
Here’s a clear breakdown of what FIRE advising usually involves and which you can better from:
1. Clarifying the FIRE Goal
A good FIRE advisor helps clients define:
Their “FIRE number” → the amount of invested wealth needed to sustain your lifestyle indefinitely.
The common formula: “FIRE Number”=”Annual Expenses”×25 (based on the 4% safe withdrawal rule).
The timeline to FIRE → how many years until you can reach that number.
What “retirement” means to you (full stop, part-time work, passion projects, etc.).
2. Cash Flow & Savings Strategy
Analysing current income, expenses, and savings rate.
Identifying areas to reduce spending without lowering quality of life.
Boosting savings levels (often 50%+ in FIRE communities).
Building an emergency fund to protect against setbacks.
3. Investment Strategy
Teaching or advising on low-cost, passive investing (e.g., index funds, ETFs).
Asset allocation (stocks vs. bonds vs. other assets).
Tax-efficient investing (ISAs, SIPPs, other tax saving schemes).
Planning for market volatility.
4. Income Diversification
Exploring ways to increase income streams:
Career optimisation (higher-paying roles, promotions)
Side hustles
Rental properties
Dividend income or business ownership.
5. Tax Optimisation & Risk Management
Structuring income and investments to minimise taxes legally.
Planning for healthcare coverage after leaving a traditional job.
Estate planning, insurance, and contingency funds.
6. Withdrawal & Lifestyle Planning
Deciding how and when to withdraw from investments sustainably.
Planning for sequence of returns risk (market downturns early in retirement).
Designing a post-FIRE lifestyle intentionally (what your days will look like, where you’ll live, etc.).
Types of FIRE Advising
DIY / Self-Education → Blogs, books, podcasts, socials.
Fee-only financial planners who understand FIRE principles.
FIRE coaches / mentors → often people who’ve achieved FIRE themselves and help others plan it.
Online communities → TikTok, forums, local meetups.
Example:
If your annual expenses are £40,000, the FIRE number is: £40,000 x 25 = £1,000,000
If you save £50,000 a year and invests it with an average 7% return, you could reach that goal in around 13–15 years.
Things needed to plan a FIRE strategy:
Current age
Annual income
Annual expenses
Current savings/investments
Desired retirement age.
Understandably this type of advice, is catching fire (😊) so if you want to know more and how to really plan for your future then get in touch.
info@brookswealth.co.uk www.brookswealth.co.uk 01733 314553