Answer

1. F

   Facts

   FIRE = Financial Independence, Retire Early. Your FIRE number is the corpus at which you can stop working forever, your portfolio returns cover all expenses. In India with 6% inflation: the magic multiple is 30×, not the US standard 25×.

2. P

   Provisions and law

   • 4% Rule (adapted)
   • Sec 11 (old 10(10D))
3. A

   Analysis

   Why 30× not 25×: US FIRE uses 25× (4% withdrawal). India has 6% inflation vs 2% in US. Portfolio needs to return 10%+ to sustain. 30× = 3.3% withdrawal rate. Safer for Indian context. The real FIRE trap: Lifestyle inflation. If expenses grow post-FIRE (kids' education, health costs, travel), corpus depletes faster. Build 35× for comfort buffer. Tax-efficient FIRE withdrawal: Withdraw from equity MF: ₹1.25L LTCG/year exempt. Spread withdrawals across spouses. SGB interest taxable but maturity exempt. Dividend from stocks at slab rate, avoid. Lean FIRE vs Fat FIRE: Lean FIRE: minimal expenses, early target. Fat FIRE: same lifestyle forever, bigger corpus. India Fat FIRE at ₹1L/month expenses = ₹3.6Cr corpus (at today's value). 4% Rule (adapted): Original: withdraw 4% of corpus annually (US). India adaptation: use 3.3-3.5% withdrawal rate due to higher inflation (6% vs 2%).

4. C

   Conclusion

   1. 1Define your FIRE monthly expense (honest, including healthcare, travel, education)
   2. 2Calculate FIRE number: 30 × (monthly expense × 12 at FIRE age)
   3. 3Project current corpus to FIRE age at 12% return
   4. 4Calculate gap and required SIP
   5. 5Review asset allocation: 70-80% equity (aggressive) pre-FIRE, shift to 50-50 post-FIRE
   6. 6Build emergency fund of 2 years expenses separately (not part of FIRE corpus)

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.