Exploring Fat FIRE: The Best Early Retirement Lifestyle

Have you ever dreamed of retiring early without giving up your comfortable lifestyle? Fat FIRE makes this possible. It is a type of financial independence where you save and invest enough money to retire early while still enjoying a higher standard of living.

Unlike other FIRE types, Fat FIRE is for people who do not want to live frugally in retirement. It allows you to travel often, dine out, buy quality items, and live in a nice house without worrying about money.

Fat FIRE vs Other FIREs

• Lean FIRE: Retire early on a small budget with very simple living.
• Coast FIRE: Save enough early so your investments grow for retirement while you continue working to cover daily expenses.
• Barista FIRE: Quit your full-time job but work part-time to cover daily costs while your savings cover retirement later.
• Fat FIRE: Retire early with no need to work again and enjoy a comfortable, even luxurious, lifestyle.

How Much Money Do You Need?

For Fat FIRE, your spending is usually $100,000 or more per year in retirement. To support this, many people aim for an investment portfolio of $2.5 million to $5 million in the US.

In lower-cost countries, this number can be smaller. For example, if you live in Thailand or Portugal and spend $60,000 per year, you would need around $1.5 million to $2 million.

Calculating your number is simple:

1. Estimate your annual spending in retirement.
2. Multiply it by 25 (using the 4% safe withdrawal rule).

For example, if you want to spend $120,000 per year, your fat retirement number would be: $120,000 x 25 = $3,000,000

This means you need $3 million invested to safely withdraw $120,000 every year without running out of money.

Several factors can change your Fat retirement goal:

• Location: Living in a high-cost city like San Francisco requires more money than living in Texas or abroad.
• Healthcare costs: You may need extra funds for private health insurance and medical expenses.
• Lifestyle choices: Travelling often, eating out daily, or owning luxury cars increase your savings.
• Family size: Supporting a partner or children increases expenses.

Pros and Cons of Fat FIRE

Pros

✅ Retire early with no need to cut your lifestyle
✅ Enjoy greater freedom and choices
✅ Less stress about unexpected expenses
✅ Ability to help family or support charities

Cons

❌ Requires a high income or business to save enough
❌ Takes longer to achieve compared to Lean or Coast FIRE
❌ May encourage lifestyle inflation while working, delaying your retirement goal

Lifestyle of Fat Retirement

People who achieve Fat retirement enjoy a high standard of living in early retirement. Their lifestyle often includes:

• Living in a spacious home in a safe, desirable area.
• Travelling domestically and internationally multiple times a year.
• Dining at good restaurants without worrying about the bill.
• Engaging in hobbies that may cost more, such as golf, sailing, or personal training.
• Donating to causes they care about or supporting family members financially.

This gives you freedom and comfort without feeling restricted by a tight budget.

Comparison among FIREs

Both types have their benefits. Lean FIRE offers freedom quickly with fewer expenses, while Fat FIRE gives you comfort and security without sacrifice.

Fat FIRE is a powerful way to achieve early retirement while enjoying life to the fullest. It is ideal for those who want financial independence but do not want to give up comfort or luxury.

However, it requires high savings, disciplined investing, and often a strong income or successful business to reach such a large retirement fund. If you are willing to work hard now to live well later, Fat FIRE could be the best early retirement lifestyle for you.