FatFIRE

Financial Independence, Retire Early with a higher standard of living

What is FatFIRE?

FatFIRE is a variation of the FIRE (Financial Independence, Retire Early) movement that emphasizes maintaining a more luxurious lifestyle in early retirement. Unlike traditional FIRE, which often involves frugal living, FatFIRE requires accumulating a larger nest egg to support a higher standard of living.

Key Characteristics:

  • Higher target retirement savings (typically $2.5M - $10M+)
  • Annual spending in the $100K - $300K+ range
  • Focus on maintaining current lifestyle in retirement
  • More flexibility for travel, hobbies, and luxury experiences

Common Strategies:

  • Aggressive saving and investing during high-earning years
  • Maximizing tax-advantaged accounts
  • Building diverse income streams
  • Real estate investing
  • Business ownership or equity compensation

Rule of Thumb:

Many FatFIRE adherents use the 4% withdrawal rule, meaning you need 25x your annual expenses saved. For $150K annual spending, that's a $3.75M target.