Index Wiki

Welcome to the MovimentoFIRE wiki!

On this wiki you can find information and advice from the Italian FIRE community. The wiki is under construction and anyone is free to contribute to it.

Introduction

Il FIRE Movement (“Financial Independence, Retire Early“) it is a cultural movement that consists of saving part of your earnings so that one day you can stop working for a living.

FIRE preaches a lifestyle of saving and investing in financial products that produce passive income, so that you can possibly live off your investments.

There is not just one path to reach FIRE, as each individual's personal circumstances are different, however, there are several strategies that generally aim to increase your savings rate, optimize your investments, and/or reduce your tax burden so you can reach your goal faster.

It starts from here

• Fire Movement
• Financial Independence
• Rule of 4%
• Types of FIRE
• Investing in the stock market
• Compound interest

By category

• Financial Independence, Retire Early
• Finance
• Investments
• Savings & Budgeting

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Abbreviations and Acronyms

A

• AA – Asset Allocation; process of dividing an investment portfolio among different categories of assets and resources such as stocks, bonds, cryptocurrencies and liquid money.
• APR – Annual Percentage Rate (Annual percentage rate).
• APY – Annualized Percentage Yield (Annual percentage return).

B

• BOT – Treasury Bills; they are short-term government bonds issued by the Italian Ministry of Economy and Finance.
• BTP – Multi-year Treasury Bonds; they are medium-long term government bonds issued by the Italian Ministry of Economy and Finance.

C

• CAGR – Compound Annual Growth Rate; a financial measure that represents the average growth rate of an investment over a specific period of time.

D

• DCA – Dollar Cost Averaging; an investment strategy that involves the periodic purchase of stocks or mutual funds at the same amount, regardless of the price.

E

• ETF – Exchange Traded Fund; an index fund that trades on the market like a stock, but it can index different types of investment securities.

F

• CATCH – Facebook, Amazon, Apple, Netflix e Google; the five “tech giants” that have dominated the stock market in recent years.
• FI – Financial Independence (Financial Independence).
• FIAT – FIAT currencies are those issued by the government and not backed by a physical commodity, like gold or silver, but rather by the government that issued it. Euro, dollars etc. they are FIAT currencies, the term is often used to make a distinction between these currencies and cryptocurrencies.
• FIRE – Financial Independence, Retire Early (Financial Independence, Early retirement).
• FI Target – Financial Independence Target; the goal set by those who follow FIRE in order to achieve financial independence.
• FU Money – F*ck You Money; an amount of savings that would allow you to say “fuck it!”, quit your job and live your life as you see fit.

H

• HENRY – High Earners, Not Rich Yet; a category of people who have above average salaries but are unable to save due to high expenses.

N

• NW – Net Worth (Net assets); the total value of a person's assets minus the total value of debts.

R

• RE – Retire Early (Early retirement).
• REIT – Real Estate Investment Trust (REIT); a company that invests in real estate and distributes profits to shareholders.
• ROI – Return on investment (Operational profitability).

S

• S&P500 –Standard & Poor 500; a stock market index that tracks the performance of 500 large publicly traded companies in the United States.
• SWR –Safe Withdrawal Rate; safe withdrawal rate.

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