What is Half FIRE? Half FIRE is the milestone of building a portfolio that covers roughly half your target annual expenses at a safe withdrawal rate, with part-time or flexible income covering the rest indefinitely rather than working toward a full FI number. Unlike Flamingo FI, which coasts the half-sized portfolio to a full FI number by a fixed date, Half FIRE has no finish line, work and withdrawals simply split the bill for as long as you choose.
Worked example: your full FI number is $1,000,000 at a 4% Safe Withdrawal Rate, or $40,000 a year. Reaching $500,000 supports a $20,000 annual withdrawal, so you need $20,000 a year from work, roughly a part-time schedule or a lighter-paying job you actually enjoy.
| Portfolio | Safe withdrawal (4%) | Annual expenses | Work income needed |
|---|---|---|---|
| $250,000 | $10,000 | $40,000 | $30,000 |
| $500,000 | $20,000 | $40,000 | $20,000 |
| $750,000 | $30,000 | $40,000 | $10,000 |
Half FIRE appeals to people who want out of a demanding full-time career years before a full FI number is reachable, trading some portfolio growth for present-day freedom. Because the portfolio keeps compounding while you work part-time, many Half FIRE practitioners drift toward full FIRE without ever planning the transition explicitly.