Key Numbers and Analysis
FIRE portfolio allocation by phase
| Phase | Equity % | Bond/Cash % | Rebalancing | Key Holdings |
|---|---|---|---|---|
| Accumulation (20+ years to FIRE) | 90-100% | 0-10% | Annual | VTI, VXUS, optional BND |
| Pre-FIRE (5-10 years) | 80-90% | 10-20% | Annual | VTI, VXUS, BND, TIPS |
| FIRE year (bond tent) | 60-70% | 30-40% | Quarterly | VTI, VXUS, BND, 2-3 yr cash |
| Post-FIRE (10+ years in) | 70-80% | 20-30% | Annual | VTI, VXUS, BND (reduce bond tent) |
💡The Bond Tent Strategy
A bond tent means increasing bond allocation from ~10% in accumulation to 30-40% around FIRE date, then gradually reducing back to 20-25% over 10 years post-FIRE. This reduces sequence-of-returns risk in the most critical early retirement period.
Scenarios and Comparison
FIRE portfolio asset allocation by component
| Asset | Role in FIRE Portfolio | Recommended Allocation |
|---|---|---|
| U.S. total market (VTI) | Core growth engine | 40-60% |
| International (VXUS) | Geographic diversification | 15-25% |
| Bond index (BND) | Volatility buffer, rebalancing source | 5-20% |
| TIPS (SCHP) | Inflation protection | 5-10% |
| Cash/HYSA | Sequence-of-returns buffer | 2-3 years of expenses |
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