What is Fat FIRE and roughly how much does it require?
Fat FIRE means retiring early without pinching pennies, funding a comfortable or even upscale lifestyle. Instead of trimming expenses to hit the number faster, Fat FIRE keeps spending high and simply requires a much larger portfolio.
There is no official threshold, but many define Fat FIRE as roughly $100,000-plus of annual spending, implying a portfolio of $2.5 million to $5 million or more at a 4% rate. It typically suits high earners in tech, medicine, or business who can sustain very large savings amounts even while spending generously. The trade-off is a longer accumulation phase or a higher required income, in exchange for far more spending cushion and less need for extreme frugality in retirement.
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