Fat FIRE
A version of the FIRE movement targeting early retirement with a large enough nest egg to sustain a comfortable, unrestricted lifestyle.
What is Fat FIRE?
Fat FIRE is an approach to financial independence and early retirement (FIRE) that aims for a significantly larger investment portfolio than lean FIRE, enabling a comfortable lifestyle without frugality or lifestyle sacrifice. While lean FIRE typically targets $1–1.5 million, fat FIRE practitioners often aim for $3–5 million or more, sufficient to withdraw $100,000–$200,000 annually at a 3–4% safe withdrawal rate. Fat FIRE takes longer to achieve than other FIRE variants but removes the financial stress of maintaining an extremely frugal retirement. It is popular among high-income professionals in fields such as medicine, law, technology, and finance.
Example
A dual-income couple earning $400,000 combined annually aims for Fat FIRE with a $4 million portfolio, targeting $160,000 per year in withdrawals at a 4% rate. At a 20% savings rate ($80,000/year) invested in diversified index funds assuming a 7% real return, they would reach $4 million in approximately 25 years — potentially retiring in their early 50s with a comfortable, unrestricted budget.
Source: Investopedia — FIRE (Financial Independence Retire Early)