A 20-year FIRE plan: how much to invest each month and what to expect

Is financial independence in 20 years realistic?

It depends mostly on your savings rate and on what you already have. Under the FIRE rule of thumb, financial independence means capital of about 25 times your yearly spending. Starting from zero, this is the share of income you would need to save to get there in 20 years, assuming a constant real return (after inflation):

If you already have savings, or can raise your income, the time shrinks. If returns are lower, or you save less, it stretches. Your own numbers matter more than any average: try them in the compound interest calculator.

How do you build a 20-year FIRE plan?

1. Know your yearly spending. It decides your target.
2. Set your FI number: 25 times your spending, which assumes a 4% withdrawal. Whether 4% is enough for you is covered in the 4% rule and sustainable withdrawals.
3. Secure the basics first: an emergency fund and no expensive debt.
4. Choose a monthly amount you can keep up for 20 years, and raise it when your income grows.
5. Invest in a diversified, low-cost way and automate it.
6. Review once a year: spending, target, costs and tax.

How much should you invest each month?

The table shows what a fixed monthly amount could become after 20 years, starting from zero, at three hypothetical constant returns. The 4%, 6% and 8% columns are gross nominal returns, before tax, costs and inflation.

Inflation matters. At 2% a year, 20 years cut purchasing power by about a third: for example, about 462,000 € at 6% is worth roughly 311,000 € in today's money. That is why a plan is better judged in real terms.

What would you need to invest for a given target?

The other way round, this is the monthly amount that would reach a target in 20 years from zero, at the same hypothetical returns:

The gap between 4% and 8% is large, and nobody knows which one you will get. Planning with a lower return and treating anything more as a bonus is more cautious than planning with the highest one.

What can a simple example portfolio look like?

As an illustration of how a monthly contribution can be split, take a mix of 80% in a global equity ETF and 20% in a physical gold ETC. The split is applied to each payment:

This is only an example of how to divide contributions, not a recommendation and not the "right" mix. Others exist, such as 100% global equities, or a mix of equities and bonds, and each has different risk. Gold produces no income, can be volatile and an ETC is not a fund. See ETFs versus single stocks for how to think about what you hold, and check costs: broker fees explained.

What do these numbers leave out?

• Returns are not constant. A series of bad years early on can change the result a lot.
• Taxes and costs. Tax on gains and the yearly cost of funds reduce what you end up with.
• Inflation. The figures above are nominal.
• Currency. If you hold assets in another currency, the exchange rate adds a risk.
• Life. Income, family and health will change over 20 years.
• The withdrawal phase. Reaching the number is half the plan: how long the capital must last is the other half.

How can you put a monthly plan into practice?

You need an account with an authorised broker (see how to check if a broker is authorised), a way to pay in every month and an understanding of costs and tax. Opening an account is described in how to open an investment account, and the tax side in taxes on investing with a foreign broker.

A concrete example: recurring investments on eToro

Data from eToro's official help article on recurring investment plans, checked on 6 October 2026, and from its fee page, checked on 5 October 2026. They can change: verify on the site before deciding.

• What you can set up: recurring monthly investments in stocks, ETFs and cryptoassets, and also in Popular Investors and Smart Portfolios. Plans cannot be set up on CFDs, leveraged or inverse ETFs, or elevated-risk stocks.
• How you fund it: from your USD balance, which eToro says is being rolled out gradually, or with a card through a recurring deposit. With a card-based recurring deposit, eToro says you receive a reduced conversion fee of 0.75% on that deposit.
• Commissions: eToro lists zero commission on ETF trades, for non-leveraged positions. For stocks, it says there is no commission fee when a recurring plan opens a trade, but the fee still applies when you close.
• Minimums: according to eToro's help centre, the minimum trade size is $10 for stocks and ETFs. Check the current amounts in the app.
• Flexibility: you can edit or cancel a plan from the Recurring Plans section. If the market is closed on the plan date, the order runs when it next opens, and a failed card payment can cause a month to be skipped.
• What it does not remove: the other costs you read about in depositing euros on eToro and what conversion costs, the yearly cost of the funds, tax and market risk.

An automatic plan is a way to stay regular, not a way to avoid losses: the value of your investments can go down as well as up. If you want to look at the recurring plan on the platform, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.

Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.

Frequently asked questions

Can you reach financial independence in 20 years?

It is possible under the right conditions, usually a high savings rate and returns that cooperate, but it is not guaranteed. Starting with existing savings or a higher income shortens the time.

How much do you need to invest per month for FIRE in 20 years?

It depends on your target and on the return. For example, reaching 750,000 € in 20 years would need about 1,600 € a month at a hypothetical 6% and about 2,000 € at 4%, from zero. These are illustrations, not forecasts.

Is an 8% return realistic?

It is optimistic as a constant long-term assumption, especially after tax, costs and inflation. Planning with a lower figure leaves more margin.

Should I put everything in one ETF?

There is no single answer. A broad diversified fund reduces the risk of one company failing, but it still carries market risk. Choose according to your goals, horizon and tolerance for losses.

Can I set up a recurring investment on eToro?

According to eToro's help article, yes: recurring monthly investments are available for stocks, ETFs, cryptoassets, Popular Investors and Smart Portfolios, but not for CFDs, leveraged or inverse ETFs or elevated-risk stocks.

Does eToro charge a commission on ETFs in a recurring plan?

According to eToro's fee page, zero commission applies to ETF trades for non-leveraged positions. Other costs, such as currency conversion and the fund's own yearly cost, still apply.