Regular FIRE for Tech Workers

Regular FIRE — sometimes called "traditional FIRE" or simply FIRE — is the middle path between extreme frugality and unlimited lifestyle spending. It targets annual retirement spending of roughly $80,000–$120,000 per year for an individual or couple, supported by a portfolio of $2,000,000–$4,000,000. For tech workers in mid-cost cities or those willing to relocate from high-cost markets, Regular FIRE is the most attainable variant — ambitious enough to require deliberate planning, achievable enough to reach in 10–15 years from a senior engineering income baseline.

Regular FIRE is not a compromise. At $80,000–$120,000 per year, a couple can live comfortably in most U.S. cities: owning their home, taking two to three international trips per year, and maintaining a full social life without budgetary anxiety. The constraints that exist are real — it is not the unlimited budget of Fat FIRE — but they are the kind most people would not notice after a short adjustment period.

The Regular FIRE Number

The 4% rule is the standard starting point. For a 30- to 40-year retirement — the horizon for a tech worker who retires in their 40s — most planners recommend 3.5% as a more conservative target. The range:

• $80,000/year at 4%: $2,000,000 portfolio
• $100,000/year at 4%: $2,500,000 portfolio
• $120,000/year at 4%: $3,000,000 portfolio
• $100,000/year at 3.5%: $2,857,000 portfolio
• $120,000/year at 3.5%: $3,429,000 portfolio

These are achievable numbers for a software engineer earning $250,000–$350,000 in total compensation who saves aggressively for 12–18 years. With RSU windfalls in high-vesting years, the timeline compresses further — many tech workers report building $2,000,000–$3,000,000 in investable assets within 10–15 years of joining a well-compensated tech company.

Where Regular FIRE Works — and Where It Does Not

Regular FIRE is highly location-dependent. At $100,000/year, a couple lives extremely comfortably in Austin, Denver, Phoenix, Raleigh, or most mid-size U.S. cities. They live modestly but adequately in Seattle or Portland. They cannot easily remain in San Francisco or Manhattan without either drawing down equity from a paid-off home or accepting significant lifestyle compromise. The single biggest planning decision for most Regular FIRE candidates who currently live in the Bay Area is whether to stay or relocate.

The financial impact of that decision is enormous. San Francisco retirement spending for a couple with no mortgage might run $160,000–$220,000 per year. The same couple in Austin might spend $90,000–$110,000. The difference — $70,000–$110,000 per year — changes the required portfolio by $1,750,000–$3,667,000 at 4%. For many tech workers, relocating effectively turns a Fat FIRE target into a Regular FIRE target they can hit years sooner.

Tax Strategy for the Regular FIRE Saver

At incomes of $200,000–$400,000, taxes are the largest obstacle to Regular FIRE. The core strategy is not complicated, but execution matters:

• Front-load every tax-advantaged account before investing in taxable accounts. The 401(k) employee contribution ($24,500 in 2026), backdoor Roth IRA ($7,500), and HSA ($8,750 for a family) reduce your current taxable income while building tax-advantaged retirement assets. This saves $15,000–$25,000 in taxes annually at combined federal and California marginal rates. Do this every year without exception.
• Investigate the mega backdoor Roth. If your employer's 401(k) plan allows after-tax contributions beyond the standard employee limit and permits in-plan Roth conversions or in-service withdrawals, you can contribute up to the total plan limit ($72,000 in 2026 minus employer match) and convert the after-tax portion to Roth. This potentially shelters an additional $30,000–$40,000 per year in tax-free growth. Not all plans allow it; check your Summary Plan Description or HR portal.
• Sell RSUs at vest and redirect proceeds. RSUs generate ordinary income at the vest date — the tax is paid regardless of when you sell. The correct default is to sell immediately and reinvest in a diversified low-cost index fund in your taxable brokerage account. Holding RSUs beyond vest creates concentration risk in a single employer without a meaningful offsetting tax benefit in most cases.
• Use tax-loss harvesting in down years. When index funds or individual positions in your taxable account decline, systematically harvesting losses — selling and immediately buying a similar fund — generates tax losses that offset capital gains or up to $3,000 of ordinary income per year. Unused losses carry forward indefinitely. For a Regular FIRE saver with $500,000–$2,000,000 in a taxable account, this practice is worth $2,000–$20,000 per year in tax savings in volatile markets.
• Consider relocating before you retire — or immediately after. If California is your current state, the timing of your relocation matters. California taxes all income earned while you are a resident. If your plan includes leaving California, consider whether to relocate before your highest RSU vesting years to reduce the state tax burden on that income. A single year of RSU vesting in Texas instead of California can save $30,000–$80,000 in state taxes on $250,000–$600,000 of RSU income.

The Regular FIRE Withdrawal Sequence

The order in which you draw from accounts in retirement has a major impact on lifetime tax liability. For Regular FIRE retirees targeting $80,000–$120,000 per year, the tax management opportunity is significant:

• Phase 1 (early retirement to 59½): Draw primarily from taxable brokerage accounts. At $80,000–$120,000 of total income, long-term capital gains may be partially or fully taxed at 0% (the 0% LTCG bracket extends to approximately $98,900 for married filing jointly in 2026). Meanwhile, convert traditional IRA funds to Roth annually in amounts that fill the 12% or 22% bracket, building a Roth balance for later flexibility.
• Phase 2 (59½ to RMD age): Continue taxable account draws, supplement with Roth or traditional IRA withdrawals as needed. Continue Roth conversions to reduce the eventual RMD burden. Monitor IRMAA thresholds (income from two years prior determines Medicare Part B and D premiums) and ACA subsidy eligibility if you are not yet on Medicare.
• Phase 3 (RMD age onward): Required minimum distributions from traditional accounts force taxable income. The Roth conversions done in Phases 1 and 2 reduce this burden. Use Roth accounts for discretionary spending to manage MAGI below IRMAA thresholds and preserve Social Security taxation at the lowest rate possible.

Social Security in the Regular FIRE Plan

Tech workers who retire in their 40s with 10–20 years of high-earning history will receive meaningful Social Security benefits — lower than someone who works to 62, but not negligible. A worker with 15 years of earnings averaging $200,000–$300,000 per year might receive $1,200–$1,800 per month at age 62, or $1,700–$2,500 per month at full retirement age (67 for those born after 1960).

This deferred income stream is worth modeling explicitly. At $1,500/month at 67, Social Security provides $18,000/year — which at a 4% withdrawal rate is equivalent to a $450,000 portfolio. The Regular FIRE retiree who counts Social Security as part of their income plan effectively has a lower portfolio requirement than the number implies, or a meaningful buffer if the portfolio underperforms.

Healthcare: The Critical Gap

Healthcare before Medicare is the most significant planning gap in Regular FIRE. For a couple in their 40s at $90,000–$120,000 MAGI, ACA subsidies are available but modest. Full-price marketplace premiums for a comprehensive plan run $1,200–$2,000 per month for a couple, meaning $14,400–$24,000 per year — a significant fraction of a $100,000 annual budget.

The most effective Regular FIRE healthcare strategy is income management: keeping MAGI below ACA subsidy thresholds by drawing from Roth accounts and realizing long-term capital gains at the 0% rate. For a couple, the 2026 benchmark income for the 0% capital gains rate is approximately $98,900. Staying below this threshold while covering living expenses requires careful sequencing between taxable account draws, Roth withdrawals, and Roth conversions — but at Regular FIRE spending levels, it is often achievable.