Our $3.7 Million Fat FIRE Strategy | New Investment Strategy to Retire Early by 45

We updated our Fat FIRE number from $2.8 Million to $3.7 Million due to inflation and the potential increase in future expenses. The prices we're seeing now should be the prices we see 5 years from now.
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⏰ Table of Contents ⏰
0:00 Our Fat FIRE Number
5:29 How we prioritize our investments
12:55 Our Retirement Income Sources
#FIREPsyChat #FinancialIndependence #retireearly
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[@FIREPsyChat]

What is your FIRE strategy? Contact us for a complimentary coaching session at www.firepsychat.com/coaching

[@manequill4461]

Such good info! It's nice to see you talking about this terrible market in such a calm way and not spreading panic. Thanks for the good info!

[@FIREPsyChat]

No problem and thanks for your feedback!

[@educatedwanderer9293]

I never thought I was aiming for FI when I paid my own way through college and started working as a critical care nurse at age 23... I started in my late 20's working one extra day every week to pay off debt. Once I was debt free I kept working the extra day to max out my 401k. At the age of 47 I had a net worth of about 400k. I did not expect it but my dad left me all his portfolio of 1.2M. I invested everything I had inherited and I continued to work and save. About ten years later at the age of 54 my net worth is 2.3M. I plan to continue to work in critical care nursing until my two son's finish college at age 58 to 60 and then retire with a portfolio of 3M or more. My family of four's current annual living expense is 78k, so the growth in the portfolio is supposed to keep up with inflation and improve our finances over time barring any surprises.

[@attorneyaviator1318]

Great video. Watched it many times. Got me to adjust my FI number-inflation considerations & keeping 10% of cash ready for bear markets like 2022. Thanks for the tips and information.

[@FIRE_DrNinjaTurtle]

This is great.

[@FIREPsyChat]

No sir you’re the great one

[@stephan24297]

Very well detailed. Thanks for all the info I hope to be able to do the same with my future family like you are doing

[@FIREPsyChat]

Of course!

[@kylemorgan7822]

Great info. Thanks for sharing! FYI, family HSA is actually moving to 7750. More good news.

[@FIREPsyChat]

Oh nice!

[@getinthespace7715]

I'm at 40. Our income just tripled. Due to me getting a promotion and my wife graduating and starting a new career. We're going to push hard to be 100% debt free in 2024. Then our base expenses will be down to $30k a year, we'll budget for $60k. We'll push hard to invest as much as we can to hit $1 million invested in the next 3-4 years, and accelerating for the next 10-15 years. If we get to the point where our income is 150% offset by investments I'll retire. I'm thinking that will be $5-7 million.

[@andriyeugenekhomyn9923]

Hi there I have a question I joined military in 2017 I did not changed for blended retirement b/c I did not know . Now on my LES retirement plan it says choice . what does that mean ? Should I still contribute to tsp I don’t get 5% match is it worth it . I thought to put 20 percent Roth and invest in stocks like c/s/f fonds. Any helpful tips for me thank you in advance

[@Tkh21209]

Hmm barista fire gotta check it out

[@FIREPsyChat]

☕️

[@Yolobruhhhh]

If you own, your property taxes will increase over time. if you rent, it will increase for this reason alone. Must be factored in.

[@SledsandGear]

"which would suck, in my opinion" 😂

[@FIREPsyChat]

🫠

[@BlackMarilynMonroe33]

Can a 529 be used for anything other than education expenses? I’m single with no kids and always looking for tax deductions. I could set up a 529 in my niece’s name, then later use it for myself if she doesn’t need it. I just didn’t know if a 529 could be used for other things besides education once you hit a certain age, as is the case for HSA’s, for example.

[@FIREPsyChat]

I would do some research on the 529 laws in your specific state. I can't use it for tax deductions while I'm contributing to the 529, but that's in my state. The 529 is mainly for educational expenses.

[@thesmartguyy]

Just curious, what is your total household income? Impressive that you guys are investing like crazy!

[@FIREPsyChat]

I never say it but people have figured it out with reverse math. The idea is for people to focus on the savings rate instead of the market returns. Thank you!

[@thesmartguyy]

@@FIREPsyChat no problem! Also, I like your thumbnails and animations. What do you use for your editing software? Very nice!

[@FIREPsyChat]

I use Canva and Final Cut Pro!

[@hallaodeh9632]

Seems like a household income of around 220k a year.

[@trendingtopic6782]

closer to ChubbyFire

[@DonteeWeaver]

👀

[@chaoxu9815]

Does it mean once u hit your 3.7 mil, you guys will quit your jobs?

[@FIREPsyChat]

Yup! Adjusted for inflation tho

[@raghavgarg1196]

What about kids? Do you factor in kids at some point?

[@onewayofliving]

3.7M is not enough. When i was in my 20s, i thought 2mill was enough, then in my 30s, I thought 3 mil, when I turned 40, I thought 5 million would be enough, now with current inflation, and that I'm 50, the number has gone to 10 million to be somewhat comfortable and worry free.

[@FIREPsyChat]

$3.7M is not enough for you but it's enough for others. The FIRE calculation is not for everyone because it's based on your lifestyle, baseline expenses, healthcare costs, retirement location, etc. There are many things you need to account for when, and that $3.7M shouldn't be a one-size-fits all answer for everyone.

[@onewayofliving]

@@FIREPsyChat take that 3.7 million and look at the value of that in future dollars using a 2.5%-3% inflation, and look in 30 to 40 years how much money it represents. You will realize, it's not enough. Especially considering how inflation will continue as the government needs to inflate to pay off it's debt. Check back to my comment in 10 years.

[@A_Sen_0]

@@onewayofliving u r crazy man Retiree in Thailand with 1 million $[1.5 million] to be on conservative side, Living cost 25k usd for 2 person