Fat FIRE 💎
Financial Independence Without Compromise
Target Spending
$100,000+/year
FIRE Number
$2.5M-5M+
Timeline
15-25 years
Income Needed
$150K+
What is Fat FIRE?
Fat FIRE is financial independence without sacrifice. With annual spending of $100,000 or more, this approach allows for a luxurious retirement lifestyle including premium travel, dining, entertainment, and the ability to live comfortably in high-cost areas. It requires a portfolio of $2.5 million to $5 million or more.
The Fat FIRE Lifestyle
Premium Housing
Large home in desirable area, second homes, no housing compromises
First-Class Travel
Business class flights, luxury hotels, 3-4 international trips yearly
Fine Dining
Regular restaurant visits, premium groceries, wine collection
Luxury Vehicles
New cars, possibly luxury brands, multiple vehicles
Premium Entertainment
Country clubs, expensive hobbies, regular events and shows
Financial Buffer
Large emergency fund, ability to help family, charitable giving
Sample Fat FIRE Budgets
Entry-Level Fat: $100,000/year
| Housing (mortgage, taxes, maintenance) | $35,000 |
| Transportation (2 cars, insurance) | $15,000 |
| Food & Dining | $15,000 |
| Travel & Vacations | $15,000 |
| Healthcare & Insurance | $10,000 |
| Entertainment & Personal | $10,000 |
| FIRE Number (×25) | $2,500,000 |
True Fat: $150,000/year
| Housing (luxury home + vacation property) | $50,000 |
| Transportation (luxury cars) | $25,000 |
| Food & Fine Dining | $20,000 |
| Travel (business class, 5-star) | $25,000 |
| Healthcare (premium plans) | $15,000 |
| Lifestyle & Giving | $15,000 |
| FIRE Number (×25) | $3,750,000 |
Path to Fat FIRE
Tech Executive Route
Income: $300,000/year
After-tax: $210,000/year
Living Expenses: $80,000/year
Annual Savings: $130,000
Time to $2.5M: ~14 years
Dual Income Professionals
Combined Income: $250,000/year
After-tax: $180,000/year
Living Expenses: $70,000/year
Annual Savings: $110,000
Time to $2.5M: ~16 years
Business Owner
Business Profit: $400,000/year
After-tax: $280,000/year
Living Expenses: $100,000/year
Annual Savings: $180,000
Time to $3.75M: ~15 years
Fat FIRE Strategies
📈 Maximize Income
Focus on high-paying careers, job hop strategically, negotiate aggressively
🏢 Build Multiple Streams
Side businesses, real estate, dividend income to accelerate wealth building
💼 Tax Optimization
Max out all retirement accounts, backdoor Roth, tax-loss harvesting
🎯 Strategic Lifestyle
Live well below means during accumulation, avoid lifestyle inflation
Is Fat FIRE Right for You?
✅ Ideal If You:
- Have or can achieve high income ($150k+)
- Want to maintain current lifestyle in retirement
- Value luxury experiences and comfort
- Live in or want to stay in high-cost areas
- Want large financial buffer for security
- Plan to support family or give generously
🤔 Key Considerations:
- Requires significantly longer timeline
- Need sustained high income
- Risk of lifestyle inflation
- May work in stressful jobs longer
- Higher tax burden to manage
- More complex financial planning
Calculate Your Fat FIRE Timeline
See how long it will take to build your luxury retirement portfolio.