CALCMONEY // FIRE // VT
FIRE number in Vermont: $2,068,250 (25x median income). Cost of living index: 114/100. State income tax: 3.35%–8.75%.
Calculate Your FIRE Date$2,068,250
114/100
$82,730
3.35%–8.75%
| Savings Rate | Annual Savings | Annual Spend | Years to FIRE |
|---|---|---|---|
| 20% | $16,546 | $66,184 | 32 yrs |
| 30% | $24,819 | $57,911 | 27 yrs |
| 40% | $33,092 | $49,638 | 24 yrs |
| 50% | $41,365 | $41,365 | 22 yrs |
| 60% | $49,638 | $33,092 | 20 yrs |
| 70% | $57,911 | $24,819 | 18 yrs |
Vermont has a cost of living index of 114 relative to the US average of 100. This is above the national average. A FIRE portfolio in Vermont needs to stretch further. Many FIRE practitioners in VT plan for a higher withdrawal need or consider relocating to lower-cost states.
The 4% safe withdrawal rule suggests a FIRE number of 25x annual expenses. At Vermont's median income of $82,730, that is $2,068,250. However, if you plan to spend more (or less) than median income in retirement, scale the number accordingly.
Vermont taxes income at 3.35%–8.75%. In FIRE, your primary income comes from portfolio withdrawals, dividends, and capital gains. Long-term capital gains in VT are taxed at the same rate as ordinary income, including IRA withdrawals. Factor this into your withdrawal rate planning.