Support Guide
Getting Started
Why FIRE?
FIRE stands for Financial Independence/Retire Early which is a movement that has gained popularity in recent years on Reddit and refers to a milestone where the returns on investments are able to cover ones cost of living.
Once this milestone is reached, it should be possible to live off the returns from the investments indefinitely allowing the freedom to spend your time however you like, without the need to work for a living. Today this community has grown to over 2 million users.
How does the app help me FIRE?
Sometimes half the battle is knowing what you have and being able to visualise your current financial position in a single place.
The FIRE app helps by keeping track of all your finances, savings, investments and debt and calculates your current “net worth” along with how you’re tracking towards retirement.
This information can be used to make better financial decisions, helping you stay on track towards your retirement goals.
How is the data stored?
All of the information you enter is stored locally on the device and is never sent to any servers.
This has the advantage that the app can be used offline and you can rest assured that your information is kept safe and private. However, do bear in mind that if the app is deleted, the information will be lost and would have to be re-entered on reinstalling the app.
How accurate are the projections?
The FIRE App uses standard calculations for projecting compound interest along with sophisticated algorithms for taking into recurring payments, withdrawals, bonuses etc, based on the data entered.
That said, financial planning tools have to balance the trade off between accuracy and ease of use. We’ve tried to keep the app as simple as possible so you don’t need an accountancy degree to get started, however this means it won’t be as accurate as professional tooling used by financial planners.
We suggest using the app as a quick and easy way to help guide you towards retirement, whilst complementing this with formal financial planning with a professional, perhaps on a less frequent basis.
Using The FIRE App
Setting up your profile
Date Of Birth
Your date of birth is used to calculate your age, this is used as the starting point for your retirement planning, and hence the first age shown on the main graph.
Retirement Age
This is the age at which you would hope to retire and stop earning an income from your day job if not retiring early. For most people this is typically the age defined by the government and at which the state pension or workplace pension can be accessed.
Life Expectancy
This is used to calculate for how long you will need to be able to live off your retirement income and forms the last age on the graph.
Monthly Retirement Spending
This is the amount of money you estimate you’ll need each month in retirement. More help can be found here on how to determine this figure given your current income and lifestyle.
My FIRE Number
This figure is calculated automatically based on your retirement spending. The app currently uses the “rule of 25” which multiplies your annual retirement spending by 25 to arrive at your target savings goal.
How is my net worth calculated?
The net worth figure is calculated as the sum of all of your savings and investments, minus the sum of your debts. By default the app shows your net worth as at today, however you can scroll forward using the graph to see how your net worth changes over time.
This figure takes into account any interest earned on savings as well as interest accrued on debts. It will also take into account any contributions, payments or withdrawals you have configured for each of your accounts.
How does the FIRE calculation work?
The app looks forward in time on an annual basis, to calculate if your net worth will meet (or exceed) your FIRE number, before your planned retirement age.
If successful your FIRE age will be displayed as a green line on the graph, in addition to the blue line showing your planned retirement age.
How does the retirement drawdown work?
Drawdown is the amount of money you would need to take from your accounts on a regular basis during retirement in order to cover your expenses.
This is based on the amount entered into the ‘Monthly Retirement Spending’ field. This amount will be deducted from savings each month following retirement, after taking into account any pension income in the following order:
• Cash Savings
• Other Assets
• ISA – Stocks
• ISA – LISA (if over 60)
• ISA – Cash
The amount drawdown following retirement is displayed below each account in a blue “bubble” when scrolling forward through time on the graph.
Does the app take into account tax?
Since everyone’s tax situation is different, right now the app does not take into account tax you may be liable to pay on your investment income.
Please bear this in mind when reviewing the figures.
Does the app take into account inflation?
It’s important to consider inflation as part of your projections, in general assets like stocks and property tend to rise with inflation while cash looses value.
The app does not currently take into account possible future inflation rates however we are looking to add support for this with a future update.
FIRE Pro
Is FIRE Pro a subscription?
No, right now FIRE Pro is a one off payment which unlocks all the Pro features, including any added with future updates.
It may be this business model is not sustainable in the long term, however we want to make our app the best value possible, whilst still generating some income to allow further development and improvements.
I purchased FIRE Pro but would like a refund
We’re sorry you’re not happy with our app, we’d love some feedback if you have time please drop us a message at contactus@getfireapp.co.uk.
As FIRE Pro is an In App Purchase, you can request a refund directly from Apple here.
Restoring a previous FIRE Pro Purchase
If you are installing The FIRE App on a new device, you may need to restore a previous purchase.
1. Tap on the gear icon in the top right corner
2. Tap the FIRE Pro banner at the top of settings
3. Tap the “Restore” button on the bottom of the purchase FIRE Pro screen.
Your previous purchase should be automatically restored and FIRE Pro features should be unlocked.
More Help?
For any additional questions or queries, including feature requests, please don’t hesitate to email us at contactus@getfireapp.co.uk