FATFIRE

FATFIRE refers to a financial independence strategy aimed at achieving a lavish lifestyle in retirement or early retirement, requiring a significantly higher net worth than traditional FIRE (Financial Independence, Retire Early) approaches. Individuals pursuing FATFIRE typically focus on accumulating enough wealth to maintain a comfortable or luxury standard of living, often including high-end travel, dining, and leisure activities.

For instance, a couple aiming for FATFIRE might target a retirement portfolio of $2 million or more, allowing them to withdraw a higher percentage annually, such as 4% to 5%, to support their desired lifestyle. In contrast, someone pursuing traditional FIRE might aim for a portfolio of $1 million to sustain a more modest lifestyle.

Case examples include:

• A tech executive who saves aggressively and invests in high-Growth Stocks to retire early with an annual Budget of $150,000.
• A couple who live frugally while working, but plan to spend $100,000 annually in retirement by amassing $2.5 million in investments.