The math behind FIRE: If your expenses are E and your investment return is r, then the amount needed to reach financial independence is approximately E/r. This is derived from the perpetuity formula and assumes the 'infinity' case where principal remains intact. #FIRE #PerpetuitySeries #FinancialMath

Recovery math: A 40% portfolio loss requires a 67% gain just to break even. When you're withdrawing 4% annually, that required recovery gain jumps to 79%. This asymmetry is why protecting against major drawdowns is crucial for retirement portfolios. #FinancialMath #SequenceRisk #Retirement