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?
Hi, I am Lisa, and I’m a 48-year-old medical doctor from Seattle, Washington. I specialize in internal medicine and have a deep interest in holistic health. My husband, Mark, is a software developer, and we have twin boys, Ethan and Noah, who are 15 years old. We love outdoor activities like hiking and kayaking, and we’re passionate about fitness and wellness.
What is your current occupation and income?
I work as an internal medicine physician, and Mark is a senior software developer at a tech company. Our combined household income is around $450,000 annually, with my earnings contributing $225,000 and Mark’s $175,000. Additionally, we have some income from investments and rental properties, adding approximately $50,000 a year.
What is your current net worth, and how is it broken down?
Our current net worth is about $4.2 million. This includes $2.3 million in taxable investment accounts, $900,000 in retirement accounts, $800,000 in real estate equity, and $200,000 in cash and other liquid assets, like money market accounts and CDs. We also have 529 accounts for our kids which I am not including in our net worth.
What inspired you to pursue FatFIRE?
The inspiration to pursue FatFIRE came from wanting more control over our time and a better work-life balance. As a physician, the long hours were taking a toll on my health and family life. Discovering the FatFIRE movement opened our eyes to the possibility of achieving financial independence earlier, which would allow us to live life more on our own terms and spend more quality time with our children.
How do you define financial independence, and what was your target number for FatFIRE?
Financial independence, for us, means having sufficient passive income to cover our living expenses without needing to work. Our target number for FatFIRE is $5 million, based on an annual spending of $150,000. This would enable us to live comfortably, travel, explore hobbies, and help with kids college education.
What steps did you take to start your FatFIRE journey?
We began our FatFIRE journey by creating a plan and a budget to maximize savings, focusing on increasing our income through career advancements and additional freelance work. We aggressively invested, aiming for a high savings rate of 50 to 60 percent of our take home pay.
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What investment strategies did you use to build your wealth?
Our investment strategy is very simple. Buy low cost index funds and leave them for the long run. Additionally, we allocated part of our portfolio (our fun money) to high-growth individual stocks and explored alternative investments like peer-to-peer lending and REITs. But that was no more than 10% or our total 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 joy and value. We focused on family adventures, made use of travel deals, and enjoyed local recreational activities. We also treated ourselves occasionally to avoid feeling deprived, ensuring we maintained a healthy balance between saving and living.
Can you share a particularly rewarding moment or milestone in your FatFIRE journey?
One particularly rewarding milestone was when we reached the $3 million mark in our investment accounts. This achievement reaffirmed that we were on the right path and motivated us to keep pushing towards our goal.
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How has your perspective on work and career changed since achieving or pursuing FatFIRE?
Pursuing financial independence through FatFIRE has allowed me to redefine my approach to work. Previously, the primary drivers were compensation and career progression. Now, I prioritize work that aligns with my values and fosters a sense of purpose. This shift has opened doors to explore opportunities in the field of holistic health and wellness, a sector that offers greater personal fulfillment and a better work-life balance.
What advice would you give to someone just starting their FatFIRE journey?
For anyone just starting their FatFIRE journey, my advice is to keep it simple. Begin with foundational books such as “Your Money or Your Life” for transforming your relationship with money, “The Simple Path to Wealth” for straightforward investing advice, and “The Millionaire Next Door” for insights into the habits of millionaires. Implement a simple passive index fund strategy by investing in low-cost funds like the Vanguard Total Stock Market Index Fund (VTSAX) for U.S. market exposure, the Vanguard Total International Stock Index Fund (VTIAX) for international diversification, and the Vanguard Total Bond Market Index Fund (VBTLX) for stability. Automate your investments, track your expenses, and create a budget to maximize your savings rate. Set clear financial independence goals based on your estimated annual expenses, stay disciplined, and be patient as you build wealth over time. Finally, enjoy the journey by finding a balance that allows you to live a fulfilling life while working towards your financial goals.
What lifestyle changes have you made since achieving or pursuing FatFIRE?
Pursuing FatFIRE has allowed me to attain a better work-life balance, which has positively impacted my overall well-being. I’ve prioritized health by committing to regular exercise, adopting a healthier diet, and ensuring ample time for relaxation and mental health practices like meditation. This financial freedom has also enabled me to provide meaningful support to family members. Additionally, I’ve been able to dedicate more time to personal growth, travel, and pursuing passions, all while maintaining strong relationships with loved ones and engaging in philanthropic efforts.
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How do you plan to spend your time and resources in early retirement?
I plan to focus on passions that I’ve had to set aside during my career. We aim to travel more, both domestically and internationally, to broaden our horizons and create lasting family memories. I also intend to volunteer more, particularly in community health initiatives and educational programs. Additionally, I’m excited to pursue hobbies like painting and writing, which I’ve always wanted to explore.
How do you ensure that your FatFIRE plan is sustainable in the long term?
We’re all about spreading out our investments and not putting all our eggs in one basket. We’ve got a mix of stocks and bonds to keep things diversified. For stocks we have the total US and international funds. Plus, we’re not sticking to a fixed 4% withdrawal rate like most do. We plan on playing it a bit safer with a 3% rate, just to give us that extra cushion. We’re not trying to live like kings today and end up broke tomorrow. We’re all about living comfortably but responsibly, making sure we’ve got enough saved up for those rainy days and retirement down the road. It’s all about balance, flexibility, and staying on top of things.
What future goals or projects are you excited about now that you have more financial freedom?
With increased financial freedom, I’m excited to launch a wellness retreat center focused on holistic health and mindfulness practices. This project combines my passion for health and community service. I’m also looking forward to dedicating more time to environmental conservation efforts and exploring new hobbies like learning a musical instrument and engaging in community theater.
