Financial Clarity Coaching Blog

FatFIRE: Financial Independence with High Income

What’s your FI/RE Part 2

Welcome to our first post of our newest mini-series! Before we dive in, most individuals pursuing FI/RE regardless of strategy are usually more “FI” than “RE”, meaning financial independence is the clear objective and not to retire early. Most would consider the RE part to be optional, but not the main goal.

So what is “FatFIRE”?

In this particular FI/RE strategy you will usually find people pursuing financial independence with large sums of money. In many cases, these individuals are high earners that have a significant Net Worth with full intentions of living a luxurious lifestyle. Frugality is not a word in their vocabulary.

Heavy investment strategies exist in all avenues of FI/RE, but FatFIRE pursuers generally have multiple streams of income in addition to their high salaries. Additionally, many have built their Net Worth by selling a business or two. In most cases, their intent is to rapidly build up Brokerage Accounts, HSAs, other businesses, & Real Estate that provide them income when they inevitably retire early. They ultimately leverage their high income to build their Net Worth to equal their “FIRE” number. It isn’t uncommon to see these individuals with a Net Worth north of 2-3 million and they can safely retire early between ages 35-45.

I’d argue that statistically, this particular percentage of FI/RE people is low. FatFIRE individuals believe that one million isn’t enough to retire early on as they intend on living a certain lifestyle without restrictions or sacrifices.

Who is pursuing FatFIRE?

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