The FIRE Pathway
The FIRE Pathway · Framework · April 2026

The FIRE Roadmap, phase by phase.

Nine phases — from defining what financial independence means to you, through tax-advantaged investing and early-withdrawal bridges, to the moment you stop trading time for money. Every dollar amount has been refreshed to 2026 IRS limits.

  • 9 phases
  • Interactive
  • Free forever
  • Based on @unconventional_economics
Start at Phase 1Jump to the calculators
Phase 01

Establish Your Financial End State.

  1. Define your financial end state

    This is an ongoing and evolving process. As your priorities change and you refine your goals, adapt your plan. Answer the four questions below.

  2. Question

    ES1: What does financial independence look like to you?

    Choose a FIRE flavor or traditional retirement.

    • Coast FIRE
    • Barista FIRE
    • Lean FIRE
    • Regular FIRE
    • Fat FIRE
    • Traditional Retirement Age
    Size your Coast FIRE number
  3. Question

    ES2: When do you want to achieve financial independence?

    Your target FI date influences your monthly investment amount, asset allocation, and account types.

  4. Question

    ES3: How much do you want to spend annually in retirement?

    This determines your FI number — the total you need invested when you retire. Phase 2 finalizes this calculation.

  5. Question

    ES4: Do you want to leave money behind for anyone?

    This influences your withdrawal rate and withdrawal strategy.

Phase 02

Budget and Track Your Expenses.

  1. Pick a zero-based budgeting method

    Examples: EveryDollar, YNAB, Mint, Excel, or even a sheet of paper. What matters is that every dollar gets assigned a job.

  2. Total last month's expenses

    Use credit card and bank statements to get a true baseline.

  3. Decision

    Does your monthly income exceed your monthly expenses?

  4. Close the income/expense gap

    Cut non-essential spending, start a side hustle, negotiate a raise, or change jobs until income exceeds expenses. Note: fixing this is NOT a prerequisite to moving to the next step.

    Then: Evaluate your income/expense gap

  7. Calculation

    Determine your FI number

    FI Number = Annual Living Expenses in Retirement ÷ Safe Withdrawal Rate (as decimal). Example: $40,000 ÷ 0.04 = $1,000,000.

    FI_number = annual_expenses / safe_withdrawal_rate
    Use the FIRE Calculator to size your FI number
Phase 03

Build a Starter Emergency Fund.

  1. Build a starter emergency fund

    Save $1,000 OR enough to cover your largest insurance deductible — whichever is greater. Park it in a high-yield savings account or money market account.

Phase 04

Invest Up to Your Employer's Match.

  1. Decision

    Are you self-employed?

    • If Yes

      → Pay off high-interest debt (>10% APR)

      Jump there
    • If No

      → Do you have an HSA-eligible high-deductible health plan, and does your employer match HSA contributions?

      Jump there
  2. Decision

    Do you have an HSA-eligible high-deductible health plan, and does your employer match HSA contributions?

    • If Yes

      → Contribute exactly enough to get the full HSA employer match

      Jump there
    • If No

      → Does your employer offer a retirement plan with matching contributions?

      Jump there
  4. Decision

    Does your employer offer a retirement plan with matching contributions?

  5. Invest exactly enough to get the full employer match

    Enroll in your employer-sponsored retirement plan. Invest the minimum needed to get the full match — nothing more at this stage. Consider tax-deferred vs. after-tax (Roth) options based on your situation. Use a 1-, 2-, or 3-fund portfolio of index funds and bond funds; let your timeline drive asset allocation.

    Then: Pay off high-interest debt (>10% APR)

Phase 05

Pay Off High Interest Debt, Increase Emergency Fund.

  2. Increase emergency fund to 3–6 months of expenses

    Closer to 3 months: stable income, plentiful job prospects, dual-income household, high risk tolerance. Closer to 6 months: unstable income, limited prospects, single-income household, low risk tolerance.

    Then: Remaining non-mortgage debt: invest or pay off first?

  3. Decision

    Remaining non-mortgage debt: invest or pay off first?

    You can also do both — split available money between debt payoff and investing.

    • If A: Invest more sooner

      → Determine your target monthly investment amount

      Jump there
    • If B: Eliminate all non-mortgage debt first

      → Pay off all remaining non-mortgage debt (Debt Avalanche)

      Jump there
Phase 06

Increase Investment Contributions to Target Savings Rate.

  2. Decision

    Any large required expenses in the next 3–5 years?

    Home down payment, college/professional education, car, etc.

    • If Yes

      → Can you save for these AND hit your monthly investment target?

      Jump there
    • If No

      → Increase investments to your target amount

      Jump there
  3. Decision

    Can you save for these AND hit your monthly investment target?

    Are you willing to increase income or decrease spending enough to do both?

  7. Matrix · Interactive

    MAGI / Tax Filing Matrix — Account Priority Order

    Determine your tax filing status and Modified Adjusted Gross Income (MAGI), then follow the column that matches your situation. 2026 MAGI thresholds.

    S
    Single
    MFJ
    Married Filing Jointly
    MFS
    Married Filing Separately
    P
    You have a workplace retirement plan (401(k), 403(b), etc.)
    NP
    You don't have a workplace plan
    NP/SP
    You don't, but your spouse does
    NP/SNP
    Neither you nor your spouse have a workplace plan
    Step 01 · Find your situation
    Result · Account priority order

    Pick your situation above to see the recommended account priority order.

    View all 8 account-priority orders

    Can deduct Traditional IRA AND contribute directly to Roth IRA

    • S (P)·< $81,000
    • S (NP)·< $153,000
    • MFJ (P)·< $129,000
    • MFJ (NP)·< $242,000
    Branch A · Current rate higher (favor Traditional)
    1. Continue employer retirement plan + HSA match
    2. Max out Traditional IRA
    3. Max out HSA
    4. Self-employed: max out Solo 401(k), SEP-IRA, or SIMPLE IRA. Employed: max out employer plan (401(k), 403(b), etc.)
    5. Contribute to taxable brokerage
    Branch B · Retirement rate higher (favor Roth)
    1. Continue employer retirement plan + HSA match
    2. Max out Roth IRA
    3. Max out HSA
    4. Self-employed: max out Solo 401(k)/SEP-IRA/SIMPLE IRA — choose Roth option or Backdoor Roth if available. Employed: max out employer plan — Roth version or Backdoor Roth if available
    5. Contribute to taxable brokerage

    Can't deduct Traditional IRA, but CAN contribute directly to Roth IRA

    • S (P)·$81,001 – $153,000
    • MFJ (P)·$129,001 – $242,000
    Branch A · Current rate higher (favor Traditional)
    1. Continue employer retirement plan + HSA match
    2. Max out HSA
    3. Self-employed: max out Solo 401(k), SEP-IRA, or SIMPLE IRA. Employed: max out employer plan
    4. Max out Roth IRA
    5. Contribute to taxable brokerage
    Branch B · Retirement rate higher (favor Roth)
    1. Continue employer retirement plan + HSA match
    2. Max out Roth IRA
    3. Max out HSA
    4. Self-employed: max out Solo 401(k)/SEP-IRA/SIMPLE IRA (Roth version if available). Employed: max out employer plan (Roth version if available)
    5. Contribute to taxable brokerage

    Can deduct Traditional IRA, but CAN'T contribute directly to Roth IRA

    • S (NP)·> $153,000
    • MFJ (NP/SNP)·> $242,000
    • MFS (NP/SNP)·> $0
    Branch A · Current rate higher (favor Traditional)
    1. Continue employer retirement plan + HSA match
    2. Max out Traditional IRA
    3. Max out HSA
    4. Self-employed: max out Solo 401(k), SEP-IRA, or SIMPLE IRA. Employed: max out employer plan
    5. Contribute to taxable brokerage
    Branch B · Retirement rate higher (favor Roth)
    1. Continue employer retirement plan + HSA match
    2. Max out Roth IRA via Backdoor Roth (contribute to Traditional IRA, immediately roll to Roth — direct Roth blocked by income)
    3. Max out HSA
    4. Self-employed: max out Solo 401(k)/SEP-IRA/SIMPLE IRA (Roth version or Backdoor Roth if available). Employed: max out employer plan (Roth version or Backdoor Roth if available)
    5. Contribute to taxable brokerage

    Can't deduct Traditional IRA OR contribute directly to Roth IRA (Backdoor Roth territory)

    • S (P)·> $153,000
    • MFJ (NP/SP)·> $242,000
    • MFJ (P)·> $242,000
    • MFS (NP/SP)·> $0
    • MFS (P)·> $0
    Branch A · Current rate higher (favor Traditional)
    1. Continue employer retirement plan + HSA match
    2. Max out HSA
    3. Self-employed: max out Solo 401(k), SEP-IRA, or SIMPLE IRA. Employed: max out employer plan
    4. Max out Roth IRA via Backdoor Roth
    5. Contribute to taxable brokerage
    Branch B · Retirement rate higher (favor Roth)
    1. Continue employer retirement plan + HSA match
    2. Max out Roth IRA via Backdoor Roth
    3. Max out HSA
    4. Self-employed: max out Solo 401(k)/SEP-IRA/SIMPLE IRA (Roth/Backdoor if available). Employed: max out employer plan (Roth/Backdoor if available)
    5. Contribute to taxable brokerage

    Can't calculate/estimate MAGI

    1. Continue employer retirement plan + HSA match
    2. Max out Roth IRA via Backdoor Roth
    3. Max out HSA
    4. Self-employed: max out Solo 401(k)/SEP-IRA/SIMPLE IRA. Employed: max out employer plan
    5. Contribute to taxable brokerage
  8. Decision

    Retiring before age 59.5?

  9. Decision

    Choose an early-withdrawal strategy

    Compare Roth Conversion Ladder (RCL) vs. 72(t) SEPP — both let you access retirement funds before 59.5 without the 10% penalty.

    • If Roth Conversion Ladder

      → Save 5 years of expenses in a taxable brokerage

      Jump there
    • If 72(t) SEPP

      → Save for someone else's future education?

      Jump there
    Stress-test your withdrawal strategy

  10. Save 5 years of expenses in a taxable brokerage

    The RCL has a 5-year seasoning period. You need at least 5 years of retirement expenses in an after-tax/taxable brokerage account to bridge until converted funds become accessible without penalty.

    Then: Save for someone else's future education?

Phase 07

Save for Dependents' Education.

  1. Decision

    Save for someone else's future education?

    • If Yes

      → Contribute to a 529 Plan or taxable brokerage

      Jump there
    • If No

      → Still have extra money for other financial goals?

      Jump there
Phase 08

Increase Investment Contributions and Pay Off Low-Interest Debt.

  1. Decision

    Still have extra money for other financial goals?

    You can do some of both.

    • If A: Increase investments (shorten FI timeline)

      → Increase investment contributions

      Jump there
    • If B: Pay off mortgage and low-interest debt early

      → Increase monthly debt payments

      Jump there
Phase 09

Reach Financial Independence and Retire.

  1. Milestone

    Reach Financial Independence.

    Move on when you're ready to retire.

    Then: Retire

  2. Retire

    Execute your withdrawal method (Constant Dollar, Percent of Portfolio, etc.) and strategy (RCL, 72(t), etc.) at your chosen withdrawal rate. Stay flexible. Enjoy it.

Methodology

Why this roadmap.

Source
Framework originally published by @unconventional_economics on Instagram, reproduced with attribution and updated for 2026 IRS contribution limits and MAGI thresholds.
Why Avalanche?
This roadmap uses the Debt Avalanche (highest interest rate first) over the Debt Snowball (smallest balance first). Avalanche is mathematically optimal — Snowball is psychologically easier. We pick math.
Why a 5-scenario MAGI matrix?
IRA rules have two separate income tests: Traditional IRA deductibility (depends on filing status + workplace plan) and Roth IRA contribution eligibility (depends on filing status + MAGI alone). Combining them produces 4 income situations plus a "can't calculate" escape hatch.
Safe Withdrawal Rate
The classic 4% rate comes from the Trinity Study, which assumed a 30-year retirement horizon. Early retirees often pick 3–3.5% because their horizon can stretch to 40+ years — sequence-of-returns risk dominates at lower rates.
Year-basis
All MAGI thresholds and contribution limits in this roadmap reflect IRS-published figures for 2026. Limits change annually — confirm current figures at IRS.gov before acting.
Sources
  • IRS — 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov)
  • IRS Notice 2025-67 — 2026 amounts relating to retirement plans and IRAs (PDF)
  • Bengen / Trinity Study — basis for the 4% Safe Withdrawal Rate.
  • Original framework: @unconventional_economics on Instagram.
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Financial disclaimer

This roadmap is for educational and informational purposes only. It does not constitute financial, investment, tax, or legal advice. MAGI thresholds, contribution limits, and tax rules change annually — confirm the current year's figures on IRS.gov before acting. Please consult a qualified financial professional (CFP, RIA, or CPA) before making investment decisions. Read our full disclaimer.