FatFIRE, LeanFIRE or plain FIRE?

[Rukh O'Rorke]

May 14, 2024 13:33:05 GMT -5 svwashout said:

Here's some perspective on these numbers: finance.yahoo.com/news/guess-many-retire-5-million-170011124.html

"Data from the Employee Benefit Research Institute, based on the Federal Reserve’s Survey of Consumer Finances, reveals that a mere 0.1% of retirees manage to accumulate over $5 million in their retirement accounts, whereas only 3.2% amass over $1 million."

So it appears that ~97% of retirees are in the LEAN FIRE bin, assuming that these bins are per person and not per household, and that retirement accounts represent the lions share of investment net worth.

As for what constitutes "early" retirement, from www.fool.com/research/average-retirement-age/
in the latest data for 2016-2022 percentage retired by age range table, it's 1% at 40-44, 2% at 45-49, 6% at 50-54, 11% at 55-59, 32% at 60-64, 70% at 65-69, 83% at 70-74, and 88% at 75+.  Based on this data I would infer that <10% of Americans in their 50s (and <1% below age 50) are retired.

Thanks for this! makes me feel a little good about something at least!

[giramomma]

May 12, 2024 11:55:43 GMT -5 finnime said:

I have a suspicion that DS, just 30, may be edging to FATFire. He is saving money big time. He told me that last year he increased his savings by 110% in the market. He also won't buy a car; his lifestyle doesn't demand one and he can always rent by the day or month or Uber by the trip. He couldn't justify to himself an outlay of >$20,000, taking that out of investment play, when it isn't necessary. Maybe he's LeanFire. I don't know. He has always been a minimalist.

My DS should be a FATFire, as long as he's not a dumbass with the gifts he's been given. He also knows if he wants to live at home rent free, he needs to abstain from being a financial dumbass. So far, we're keeping up our ends of the deal.

The other wild card is also partnering up. I've told DS that a prenup needs to be his HTDO.  I will be hammering that into his head, a lot.

[Ombud]

May 8, 2024 7:37:12 GMT -5 minnesotapaintlady said:

There are so many variations of FIRE now.  Fat, Lean, Coast, Barista, Cash-Flow...

I consider myself Coast at this point and shooting for plain FIRE.

this is just plain strange to me. My monthly spending is less than my current take home pension of apx 3k month. So I am technically lean fire? Yet I travel 3-4× a year, always abroad, never on a shoestring budget. Now I'm supposed to get SSA & soon RMD. Those $$s will just be dumped into Schwab to gift out as desired. Or to pay for my granddaughter's college as her FAFSA is stuck. (She was accepted to a school of choice, DS / not her dad says community college this year if FAFSA doesn't come thru. Here comes Bank of Grandma)

[minnesotapaintlady]

May 31, 2024 16:46:06 GMT -5 Ombud said:

May 8, 2024 7:37:12 GMT -5 minnesotapaintlady said:

There are so many variations of FIRE now.  Fat, Lean, Coast, Barista, Cash-Flow...

I consider myself Coast at this point and shooting for plain FIRE.

this is just plain strange to me. My monthly spending is less than my current take home pension of apx 3k month. So I am technically lean fire? Yet I travel 3-4× a year, always abroad, never on a shoestring budget. Now I'm supposed to get SSA & soon RMD. Those $$s will just be dumped into Schwab to gift out as desired. Or to pay for my granddaughter's college as her FAFSA is stuck. (She was accepted to a school of choice, DS / not her dad says community college this year if FAFSA doesn't come thru. Here comes Bank of Grandma)

You're overthinking it.  This chart is simply a guide for the savings amount needed to retire early based on the desired annual (or monthly) income.  It is completely ignoring things like social security and pensions because the FIRE crowd is typically not old enough to receive either of those yet. This is "I want to quit working at 45, what do I need saved up to ensure me 70K/year for the rest of my life?"

[andi9899]

I don't know what fire I am because I didn't bother to read. I'll probably work until I'm 70 regardless of financial situation just because I'll need something to do. My dad asked then why not just get a PT job and retire early. Because I make FT money. Why not just stack more cash if I'm gonna be working anyway. Plus, my job is a sit down job. It's not like I'll be working manual labor in my old age.

[resolution]

I would be regular FIRE if my husband would retire, but since he is still working I guess I am just a housewife.

[geenamercile]

I am not FIRE at all, but I will say the chart is kind of nice to compare to my pension and kind of have a non-pension value to it, if that makes sense.