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 James, a 42-year-old digital marketing consultant from Austin, Texas. I grew up in a small town in the Midwest, where financial prudence and hard work were core family values. My wife, Laura, is a schoolteacher, and we have two kids, ages 8 and 11. We enjoy spending time outdoors, hiking, and camping, and traveling all over the world.
What is your current occupation and income?
I run my own digital marketing consultancy, which brings in about $200,000 annually. Laura’s income as a schoolteacher is around $60,000. Combined with occasional freelance projects and side hustles, our household income totals approximately $280,000 per year.
What is your current net worth, and how is it broken down?
Our current net worth is at about $2.7 million. This includes $1.3 million in taxable investment accounts, $600,000 in retirement accounts, $700,000 in real estate equity, and $100,000 in cash.
What inspired you to pursue FatFIRE?
The inspiration to pursue FatFIRE came from a desire to achieve financial security and flexibility, allowing us to spend more quality time with our children and engage in meaningful projects. I was particularly motivated by the stories of others who achieved FatFIRE and the freedom it provided them to live life on their own terms.
How do you define financial independence, and what was your target number for FatFIRE?
For us, financial independence means having enough passive income to cover all our living expenses plus some fun money, without relying on active employment. Our target number for FatFIRE was $2.5 million, which would allow us to spend around $100,000 a year.
What steps did you take to start your FatFIRE journey?
We were always good savers, but once we learned about FatFIRE we felt like there was a purpose for our savings. We focused on growing our income by advancing in our careers and pursuing side hustles. Investing in low cost index funds and ETFs was crucial to our strategy.
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What investment strategies did you use to build your wealth?
Our investment strategy centered on low-cost index funds to ensure broad market exposure and minimize fees. We also invested in rental properties, which provided a steady stream of passive income. Additionally, we allocated a portion of our portfolio to individual stocks with high growth potential and invested in peer-to-peer lending for further diversification, but that was a small percentage of our net worth.
How do you balance maintaining a high savings rate with enjoying life along the way?
Balancing a high savings rate with enjoying life involved prioritizing experiences and activities that brought us the most joy. We focused on affordable travel, used rewards points to offset costs, and enjoyed local, low-cost recreational activities. We also made it a point to celebrate small milestones and treat ourselves occasionally, ensuring we didn’t feel deprived.
Can you share a particularly rewarding moment or milestone in your FatFIRE journey?
One particularly rewarding milestone was when we hit the $2 million mark in our investment accounts. This milestone signaled that we could see the light at the end of the tunnel, and it gave us a huge confidence boost. To celebrate, we took a memorable family trip to the Grand Canyon, which had been on our bucket list for years.
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How has your perspective on work and career changed since achieving or pursuing FatFIRE?
Since achieving FatFIRE, our perspective on work and career has shifted, but not drastically. The biggest change is that we’re much less stressed about our careers. Knowing we have a solid financial foundation gives us the freedom to approach work with a different mindset. We don’t feel pressured to climb the corporate ladder or chase the next promotion.
This financial security allows us to prioritize work-life balance and take time off when needed without worrying about the impact on our long-term financial goals. Overall, while our dedication to our careers remains strong, we now enjoy a greater sense of freedom and flexibility, which has made our professional lives more fulfilling and less stressful.
What advice would you give to someone just starting their FatFIRE journey?
Embrace the power of time and smart investing. Focus on building wealth through low-cost index funds. Trying to actively pick winning stocks is a gamble – index funds offer broad market exposure and historical returns that are tough to beat consistently. Remember, FatFIRE isn’t just about money; it’s about freedom. Don’t get caught in the trap of needing a luxurious lifestyle to be happy. Many of the things that bring us the most joy, like spending time with loved ones, exploring nature, or pursuing hobbies, are free or inexpensive.
What lifestyle changes have you made since achieving or pursuing FatFIRE?
It’s interesting – life hasn’t drastically changed since we hit our FatFIRE goals. We still enjoy the simple things – good food, spending time with loved ones, and getting lost in a good book. The biggest shift has been the freedom and means to travel a little more. It’s also been rewarding to be able to offer more support to our aging parents. Whether it’s helping with home maintenance or just spending more time together, FatFIRE has given us the flexibility to be there for them in a more meaningful way.
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How do you plan to spend your time and resources in early retirement?
While achieving FatFIRE hasn’t drastically changed our day-to-day lives, it has opened doors to new experiences. We still cherish simple pleasures, but now we can sprinkle in more trips around the globe. More importantly, FatFIRE allows us to be a stronger support system for our aging parents.
Looking ahead, early retirement isn’t about flipping burgers (although, who knows, maybe a food truck adventure awaits!). It’s about pursuing passions – that neglected guitar lesson or finally mastering French – and giving back through volunteering or philanthropy. We’ll explore hidden corners of the world, nurture connections with loved ones, and prioritize experiences that bring lasting joy. FatFIRE isn’t about extravagance, but about living a life rich in meaning, purpose, and maybe a few more passport stamps.
How do you ensure that your FatFIRE plan is sustainable in the long term?
We’re not rushing into full-fledged retirement just yet. While FatFIRE is on the horizon, spending a few extra years working allows us to pad the nest egg a bit more. This translates to a lower withdrawal rate in retirement – think 3% instead of the typical 4%. A more conservative approach ensures our principal keeps growing and we can stay flexible with spending adjustments if needed. Healthcare’s a wild card, so we’ve factored in a buffer for those unexpected costs. The goal is a sustainable FatFIRE – enjoying early retirement without worries about running out of steam (or money)!
What future goals or projects are you excited about now that you have more financial freedom?
I’m itching to dust off that neglected guitar and finally learn to play, or maybe even tackle a new language – imagine ordering Ratatouille in French! My taste buds are ready for a culinary adventure too, from mastering regional specialties to experimenting with exotic spices in the kitchen. And of course, there’s the travel bug. Early retirement isn’t about idleness, it’s about filling our days with passions, new cultures, and experiences that create a truly fulfilling life.
