The Financial Independence / Retire Early (FIRE) community uses numerous acronyms and terms. Here’s a comprehensive glossary to get you started:

  1. FIRE: Financial Independence, Retire Early.
  2. FI: Financial Independence. It’s the point where your passive income or savings can cover your living expenses.
  3. RE: Retire Early. It means retiring before the traditional age, usually 65 in many countries.
  4. Lean FIRE: Achieving FI with a minimalist lifestyle might involve living on a lower annual spending rate than what is commonly accepted in the FIRE community.
  5. Fat FIRE: Achieving FI with a more luxurious or comfortable lifestyle, often with higher annual expenses.
  6. Coast FIRE (or Barista FIRE): Having enough saved that you no longer need to save for retirement. Any income earned covers current living expenses.
  7. 4% Rule: A rule of thumb suggests that if you withdraw 4% of your initial retirement savings annually, adjusted for inflation, your money should last 30 years. Based on the Trinity Study.
  8. SWR: Safe Withdrawal Rate. The percentage of your portfolio you can safely withdraw each year without running out of money.
  9. FTE: Full-Time Equivalent.
  10. SR: Savings Rate. The percentage of your income that you save.
  11. HSA: Health Savings Account. In the U.S., this is a tax-advantaged savings account for medical expenses.
  12. IRA: Individual Retirement Account. A type of retirement account in the U.S. offering tax advantages.
  13. Roth IRA: A specific type of IRA where contributions are taxed, but distributions in retirement are tax-free.
  14. 401(k): A retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out.
  15. 457 Plan: A type of non-qualified tax-deferred compensation retirement plan available to governmental and certain non-governmental employers.
  16. 403(b) Plan: A U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers, and certain ministers.
  17. Boglehead: A follower of the investing principles of John Bogle, the founder of Vanguard Group. The Bogleheads’ Guide to Investing is a go-to resource.
  18. VTSAX: Vanguard Total Stock Market Index Fund Admiral Shares. A popular low-cost index fund is often mentioned in the FIRE community.
  19. Geoarbitrage: Taking advantage of the cost difference between various geographical areas, often by moving to a lower-cost area to stretch retirement funds.
  20. Sequence of Returns Risk: The danger is that the timing of withdrawals from a retirement account will negatively impact the overall rate of return available to the investor.
  21. Chautauqua: A retreat for individuals in the FIRE community where they can meet, share ideas, and learn from leaders in the movement.

These are just a selection of terms from the FIRE community. If you’re starting a blog, it’s also important to note the ever-evolving nature of the community and its lexicon. Always keep an ear to the ground for emerging trends, concepts, and terminologies!