My First Million SPECIAL: The Little Known World of FatFIRE
Jul 26, 2021
Discover the intriguing world of FatFIRE, a concept focused on achieving financial independence while maintaining an upper-middle-class lifestyle. Learn about the safety withdrawal rate and the power of asset-backed loans. Delve into why many choose to keep working post-retirement. Explore the balance of spending versus saving and the importance of having a financial number in mind. Gain insights into the complexities of wealth and personal relationships within this unique community.
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FatFIRE Explained
- FatFIRE is a community focused on Financial Independence, Retire Early (FIRE) with a higher spending target.
- It emphasizes retiring early with enough money to maintain an upper-middle-class lifestyle.
Safe Withdrawal Rate
- Understand your safe withdrawal rate, the amount you can withdraw while still growing your principal.
- A 3-4% withdrawal rate is generally considered safe based on historical market data.
Asset-Backed Loans
- The wealthy often use asset-backed loans to access funds at low interest rates.
- They can then invest these funds at higher rates, profiting from the difference.
