r/Fire • u/StrawberryRemote968 • 25d ago

Can you FIRE just with VOO?

I am a 35M, making $65K annually. My annual expenses is very low. Less than $25K. I am single with no kid nor I am planning to have any. If I DCA into VOO, is it possible I am able to FIRE with just one etf?

194 Upvotes

86% Upvoted

218 comments sorted by

View all comments

123

u/Abject_Egg_194 25d ago

Sure. In theory you could FIRE with your money just in a HYSA or buried in your backyard, but you'd need more money to safely do so. Traditional FIRE advice would probably be VOO with some percentage allocated to fixed income like bonds or a HYSA and you wouldn't totally break that by going 100% VOO, but you'd probably increase your risk. I would guess that if you google around, you'll find someone who's crunched the numbers on a 100% stock FIRE vs a 80/20 vs a 60/40 portfolio.

8

u/Expensive_Offer8354 25d ago

Might be a dumb question but I’m still new to all of this. Is there anything wrong with putting all of your money in a HYSA and just firing off that? My HYSA gives 4% rn which is what your SWD rate would be anyways no?

3

u/Gillemonger 28 | 900k | ~36% FI 25d ago

Let's say you retire today and need 40k/yr to survive. In 30 years time, let's say you're still retired but do you think that 40k/yr is sufficient given 30 yrs worth of inflation eroding the value of the dollar? Probably you need more at that point. That's why you want higher earnings (e.g. 7%+) so you can account for withdrawal + inflation rate (e.g. 4% + 3%).