Welcome to our FatFIRE Interview Series! In this blog, we delve into the stories of individuals who have achieved or are on the path to achieving FatFIRE—an ambitious financial independence and early retirement goal characterized by a high level of financial security and luxury. FatFIRE stands for “Financial Independence, Retire Early” with a focus on a comfortable, often lavish lifestyle funded by a substantial nest egg.
Through these interviews, we aim to uncover the diverse strategies, mindsets, and experiences of those who have navigated the journey towards financial freedom. Whether you’re an aspiring FatFIRE enthusiast or simply curious about how others have reached this milestone, these conversations offer valuable insights and inspiration.
Join us as we explore the unique paths, challenges, and triumphs of FatFIRE achievers, and discover what it truly takes to attain financial independence on your own terms.
If you would like to be featured in one of our interviews, please feel free to reach out.
Can you tell us a little about yourself, your family and your background?
My name is Sarah, and I’m a 50-year-old former corporate executive turned entrepreneur. I was born and raised in New York City, where I developed a love for finance and business at an early age. I have a degree in economics from Princeton and an MBA from Harvard. My husband, David, is a freelance graphic designer, and we have one daughter, Emily, who is 15 years old. We enjoy a close-knit family life filled with travel, outdoor adventures, and a shared passion for the arts.
What is your current occupation and income?
I currently run my own consulting firm, which specializes in helping startups navigate the complexities of scaling their operations. My annual income from the firm ranges between $300,000 and $400,000, depending on the projects we undertake. My husband brings in another $100,000 or so from his job.
What is your current net worth, and how is it broken down?
Our current net worth is approximately $5 million. We have about $2.5 million in taxable investment accounts, $1 million in retirement accounts, split about 60/40 between traditional and Roth, $1.3 million in real estate equity, and about $200,000 in cash.
What inspired you to pursue FatFIRE?
My inspiration to pursue FatFIRE came from a desire to gain control over my time and to achieve a greater sense of freedom and security for my family. After spending decades in the corporate world, I wanted the flexibility to pursue my passions, spend more time with my family, and engage in meaningful projects without the pressure of financial constraints. We stumbles upon the Mr Money Mustache blog about 10 years ago. Since then, we’ve been following several other bloggers like POF, Mad Fientist, and others.
How do you define financial independence, and what was your target number for FatFIRE?
Financial independence means having enough assets to cover all our living expenses indefinitely, allowing us to live comfortably without the need to work. Our target number for FatFIRE was $4 million, which we reached a couple of years ago. We still plan to work a few more years as we still enjoy our work.
What steps did you take to start your FatFIRE journey?
To start our FatFIRE journey, we tried to learn as much as possible from people who followed the same path. We followed several blogs, and learned about the different types of FIRE. FatFIRE is the one that we felt best fit our values. We started analyzing our expenses and identifying areas where we could cut costs without compromising our quality of life. We then focused on increasing our income through career advancements and side businesses. We made a concerted effort to save and invest a significant portion of our income, aiming for a savings rate of at least 50%.
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What investment strategies did you use to build your wealth?
Our investment strategy primarily revolved around low-cost index funds. It’s all about minimized investment fees for us. We also have one rental property that generates a little bit of income. Additionally, we allocated a portion of our portfolio to individual stocks. Mainly a few high tech stocks that we like.
How do you balance maintaining a high savings rate with enjoying life along the way?
Balancing a high savings rate with enjoying life is crucial for us. It helps to have a high income. We also focus on prioritizing experiences and activities that bring us joy, such as travel and family outings, while being mindful of unnecessary expenditures. We make use of travel rewards and credit card points to reduce the cost of vacations. By being intentional with our spending, we are able to maintain a fulfilling lifestyle without compromising our financial goals.
Can you share a particularly rewarding moment or milestone in your FatFIRE journey?
One particularly rewarding moment was when we reached the $3 million mark in our investment portfolio. This milestone represented a significant leap towards our FatFIRE goal and reinforced our commitment to the plan. We celebrated this achievement with a family trip to Europe, which was both a reward and a reminder of the freedom and opportunities that financial independence could offer.
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How has your perspective on work and career changed since achieving or pursuing FatFIRE?
Since pursuing FatFIRE, my perspective on work and career has shifted significantly. I now value work that aligns with my passions and allows me to make a meaningful impact, rather than focusing solely on financial gain. This change in mindset has led me to start my consulting firm, where I can choose projects that I am passionate about and that offer flexibility and balance in my life.
What advice would you give to someone just starting their FatFIRE journey?
For anyone just starting their FatFIRE journey, my advice would be to educate yourself about personal finance and investing. There are a ton of great blogs and books out there. Set clear, realistic goals and create a detailed plan to achieve them. It’s essential to stay disciplined and patient, as the journey to FatFIRE is long-term. Don’t be afraid to make adjustments along the way and always prioritize your well-being and happiness.
What lifestyle changes have you made since achieving or pursuing FatFIRE?
We still prioritize experiences over material possessions, spending more time on travel, hobbies, and family activities. We’ve increased our travel quite a bit now that we’ve reached our FatFIRE number. We don’t stress about the cost of things we value as much as we used to. If it brings joy to our lives, we buy it without thinking twice, within reason, of course.
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How do you plan to spend your time and resources in early retirement?
In early retirement, we plan to spend our time and resources focusing on a mix of personal fulfillment, adventure, and giving back. First and foremost, we want to prioritize our health and well-being by maintaining a regular fitness routine, exploring new hobbies like cooking and photography, and continuing practices like yoga and meditation. Travel is a big part of our plan too; we aim to explore different cultures, live in various parts of the world, and immerse ourselves in new experiences.
In addition to personal growth, we want to invest time in learning and education by taking courses on topics that interest us and attending workshops and conferences. Strengthening relationships with family and friends is also a priority, so we’ll dedicate more time to being with loved ones and nurturing those connections. We’re excited to volunteer and contribute to causes we care about, whether it’s through hands-on involvement or financial support.
How do you ensure that your FatFIRE plan is sustainable in the long term?
First, even though we’ve reached our FatFIRE number, we continue to work and earn income, which provides an extra buffer and adds to our financial security. By doing this, we create plenty of room for any unexpected expenses or market fluctuations that might come our way.
We also plan to use a conservative 3% withdrawal rate from our investments instead of the standard 4%, ensuring that our savings last longer. Moreover, in retirement, we plan to continue earning some income through passion projects, part-time work, or consulting.
What future goals or projects are you excited about now that you have more financial freedom?
With increased financial freedom, I am eager to embark on several exciting projects and goals. One of my primary goals is to travel the world with my family, immersing ourselves in different cultures and experiences that we’ve always dreamed of. I’m also passionate about launching a financial literacy program aimed at empowering young people with the knowledge and skills they need to achieve financial independence. Additionally, I plan to invest more time into my entrepreneurial ventures, exploring new business opportunities that align with my values and interests. Lastly, I’m excited to take up new hobbies and passions, such as learning a new language and improving my culinary skills, which I’ve always wanted to pursue but never had the time for.
