Terms like "Coast FIRE" or "Fat FIRE" could mean different things to different people, and each person's situation is just a little different. What specifically are your options?Does it really need to be that complicated?
For our desired "FAT FIRE" amount, the portfolio would need to return 4.5% CAGR in real dollars over 16 years, if we don't add any more, which would be the earliest my spouse could retire. More likely it would be at least 18 years, in which 4% CAGR real would be needed.
I'd agree with $2M in your early-mid 40s you can probably slow down a little on savings rate if you had to, but there are still unknowns like kids education, health, etc. that add some risk you can't entirely mitigate away simply because the future can't be predicted. Future is often different than expected. Often the future is better than expected, but the old saying "hope for the best, plan for the worst" might not be a bad idea.
I think the first step to really think through is what your job opportunities will look like over the next 16-20 years while you expect to be in the job market. Maybe your current skills and experience transfers over well to another employer. You didn't mention "Barista FIRE" but of the fire variants that's the one that I've been somewhat skeptical of. There just aren't that many 20 hour per week school bus driver jobs with health care benefits but maybe your high school buddy is the school district superintendent and he'll help you out.
So what I'm saying is to make it real and specific to you. Write it down, talk it over with your wife and other family if they are part of the plan (example working for a family member in their small business as alternative employment). Edit it and rewrite it since you have time.
Statistics: Posted by stan1 — Sun Feb 23, 2025 1:21 am — Replies 6 — Views 544