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 Nancy. My husband Richard and I have been married for 25 years. We are in our early to mid 50s. We have 4 kids. Two of them are in college and the other two are high schoolers. We live outside Dallas. I was a stay at home mom for many years, but was lucky to find a relatively high paying job, after returning to work.
What is your current occupation and household income?
We are both software engineers, and our current household income is roughly $230,000. We lived on a single income for over 18 years.
What is your current net worth, and how is it broken down?
Our net worth is a little over $3.5 million, if you count the house we live in.
401k/Traditional IRA: $2.35 M
Roth IRA: $530K
Brokerage: $68K
Savings/Cash: $52K
529 Accounts: $122K
HSA Account: $31K
House Appraised Value: $573K
What inspired you to pursue Fat FIRE?
I don’t think we necessarily tried to pursue Fat FIRE. We didn’t even know what FIRE was when we started working and saving. Growing up in a war-torn country rocked by financial instability, I was taught to save my money for hard times. My husband and his 4 siblings were raised by a stay at home mom and a blue collar dad. They were also taught not to “waste” money. When I first started working, I didn’t know anything about retirement plans and 401K, but my older brother convinced me to save 15% of my salary for retirement. 15% was the maximum you could contribute back then.
When the 2008 financial crisis took place, we saw our 401K value drop drastically, so we decided not to look at our accounts anymore, but we kept contributing. A few years later, someone recommended that we use an account aggregator to view all of our accounts in one place. When we set it up, we were shocked to find out that we were already Millionaires. We had no idea how much money we had.
How do you define financial independence, and what was your target number for FatFIRE?
Financial independence is not having to worry about signing your kid up for an expensive camp, and feeling empowered to leave a toxic work environment. It’s also knowing that you will not be a burden on your kids, in your older years. It’s about taking a nice family trip to Europe, or upgrading to a nicer hotel on your vacation.
What steps did you take to start your FatFIRE journey?
The first and most important step is to set aside at least 10% of your income, as soon as you start working. Be consistent and don’t look at your portfolio, especially when the market is down. Don’t fall into the trap of gambling with your money by buying risky single stocks or crypto. Be consistent and stick to the plan.
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What investment strategies did you use to build your wealth?
I’ve once heard a personal finance youtuber say, “Always be buying” and it stuck with me. That’s basically our strategy. We buy low cost index funds or ETFs every time we get paid. It’s mostly been through our 401K or Roth IRA accounts. We have bought some single stocks, mostly in tech, because that’s the field we work in, but it’s a small portion of our portfolio.
How do you balance maintaining a high savings rate with enjoying life along the way?
It’s a lot easier now that we have two incomes. We are in our 50’s, and we’ve finally realized that we should start enjoying our money more. When you are raised to always save for that rainy day, it’s hard to flip a switch and start spending and enjoying the fruits of your labor. It’s going to take some getting used to, but we remind each other that it’s ok to splurge, now that we are financially independent.
Can you share a particularly rewarding moment or milestone in your FatFIRE journey?
I would say that the most rewarding milestone is when we found out we were Millionaires. We probably reached the milestone a couple of years before knowing it. Owning our house is another rewarding moment. Not having to worry about losing your home if you were to ever lose your job, gives you great peace.
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How has your perspective on work and career changed since achieving or pursuing FatFIRE?
My husband lost his job in 2009. I was pregnant with twins, and had two small children. It was a scary time, but we survived it. Fast forward 15 years, we are in a much better place, and either one of us can lose their job or quit out right without any effect on our standard of living. Having achieved Fat Fire actually gave me the confidence to switch jobs and ask for more money. In a way, it makes it easier to take more chances, ask for a bonus, and not be pressured to accept a lower paying job.
Have you retired yet, and if not, when do you plan to retire?
I have not retired yet, and I don’t plan on retiring anytime soon. I love my job, but I also know that if things get ugly at work, I can push back or even leave. The fact that I was a stay at home mom for a long time gave me a big break from work, and I am now excited about contributing to the workforce. My husband on the other hand is ready to retire, but is waiting to turn 55 so he could have access to his current company’s 401K.
What advice would you give to someone just starting their FatFIRE journey?
Don’t be discouraged if your portfolio is too small in the first few years. Those early years are very crucial, and the money you save in your twenties is going to be worth a lot in your 40s, 50s and beyond. Keep saving and keep investing in a low cost index fund. Be consistent and you will be greatly rewarded in the future.
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What lifestyle changes have you made since achieving or pursuing FatFIRE?
My lifestyle is still roughly the same. Change is hard, but we do try to splurge every once in a while. I don’t worry about eating out like I used to, when we had a young family. When I book a flight, I don’t mind paying extra for the convenience of a direct flight or departing and arriving at a decent time. We bought a new car two years ago, as opposed to the used cars we’ve purchased in the past. These are all little things but they make your life a little easier. We won’t be buying a boat anytime soon, but we may take a nice cruise or a European vacation without worrying about the price.
How do you plan to spend your time and resources in early retirement?
We both love to travel, so I can see us traveling a lot. I may take up a new hobby like golf, and I’ll be playing a lot more tennis and pickleball, than I do now.
How do you ensure that your FatFIRE plan is sustainable in the long term?
We plan on sticking to the 4% rule when we retire, and we’ll wait until 67 before we start drawing social security pay. I’m not worried about running out of money, because I feel like we won’t even spend the 4%.
What future goals or projects are you excited about now that you have more financial freedom?
I work from home, so I can work from any location. My husband, on the other hand, has to go to the office. In the near future, I look forward to a time when he is retired, so we can spend a month or two at a place far from home. I can work remotely, but still spend time exploring my home away from home, on the weekend and in the evenings.
