DCA = Dollar Cost Averaging; the strategy of investing money into the market over many regular intervals of time (as opposed to lump sum investing).

DINK = Double Income No Kids

FI = Financial Independence; the ability to live off savings and pay living expenses without needing to be employed.

FIRE = Financial Independence & Retire Early

Coast FIRE = having enough money already invested so that it is not necessary to invest more to achieve FI at the desired retirement age.

Barista FIRE = having enough money to retire at the desired retirement age and also getting a part-time job for additional income and health insurance.

Lean FIRE = achieving FIRE without having much safety nets for luxuries/children/major health costs during retirement, usually only spending on necessities such as housing, food, and transportation.

Fat FIRE = achieving FIRE with the ability to cover unexpected expenses during retirement while living in equal or greater lifestyle as before retirement.

HENRY = High Earner, Not Rich Yet

HYSA = High Yield Savings Account

NW = Net Worth

PITI = Principal + Interest + Taxes + Insurance

PMI = Private Mortgage Insurance

SWR = Safe Withdrawal Rate

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[–] [email protected] 1 points 1 year ago* (last edited 1 year ago)

CAGR - Compound Annual Growth Rate; basically the average growth rate that gets you from the start to the end of a period; better than a simple average because a simple average will give the wrong number depending on sequence of returns
MM - Money Market (fund/account); alternative to HYSA, is SIPC insured instead of FDIC insured
FDIC - Federal Deposit Insurance Corporation; insurance protection for assets at a bank; usually $250k per SSN per bank
SIPC - Securities Investor Protection Corporation; like FDIC, but for brokerage accounts; the main difference is that FDIC insurance claims are automatically filed, whereas SIPC requires the account holder to file a claim; however, due to the nature of brokerages, it's not as big of a risk in many cases since the brokerage doesn't usually hold your money, a fund does
MMM - Mr. Money Mustache; prominent FIRE blog focusing on frugality
SORR - Sequence of Returns Risk; risk of poor returns (e.g. a market crash) early in retirement that derails your retirement plans