Don’t worry I’m not suddenly ChubbyFIRE, but I did recently read about ChubbyFIRE.
What is ChubbyFIRE?
Being ChubbyFIRE means you have a $100,000 annual retirement income (estimated at about a $2,500,000 investment portfolio) so you can enjoy some of life’s luxuries without having to scrimp and budget with traditional FIRE.
Being FatFIRE is having at least $150,000 in annual retirement income so you can definitely enjoy life’s luxuries, though I would say $150,000 in annual retirement income isn’t that much when you are in a HCOL area and accustomed to some of life’s finer things, like private school tuition (for two children that’s at least $55,000 to $60,000). Adding extracurricular activities for kids and you’re already adding at least $10,000 to $15,000 for two children. This doesn’t even include the core expenses such as utilities, property taxes, shelter, and food.
Personally I think $100,000 annual retirement income as an individual is a lot, but for a family of four it doesn’t stretch as far.
PF BLog Round Up
This is quite the surprise, the Millennial Revolution duo (famous for claiming to be Canada’s earliest retirees) welcomed a baby! They are advocates of not falling for Canada’s real estate obsession and freedom that comes with not being tied down to a mortgage.
My Own Advisor acknowledges that it is a tough time for dividend investors but shares some information that will help soothe your dividend investing soul.
Of Dollars and Data also write a post on whether the US Stock Market is as bad as it seems. It isn’t, but he future is hard to predict. He will continue with regular purchasing of a diverse set of income producing assets.
Joe from Retire by 40 states that FatFIRE is boring because you need to have a little bit of struggle. FatFIRE is having a $5,000,000 portfolio to be able to have a $150,000 annual income in retirement. There was a nasty comment on his blog which Joe responded to very politely and with grace.
If you want to go down the FatFIRE and ChubbyFIRE rabbit hole there’s the ChubbyFIRE reddit. ChubbyFIRE is less than FatFIRE with a target portfolio $2.5 million to $5 million invested. I checked it out for the first time, and it’s like the national newspapers articles of “am I able to retire with $1,200,000 invested and two rental properties with no mortgage” but…. worse. If your income and net worth is not obscenely high I wouldn’t recommend reading it because you might feel bad about yourself, lol. We’re talking about people who are age 35 with no children and have $3.5 million invested and wondering if they will be able to take a 8 month sabbatical and asking reddit for their advice.
I felt like saying “do you even hear yourself?” Haha 🙂
Do you have a target annual FIRE income goal or age for retirement?
GYM is a 30 something millennial interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for blog updates, a free dividend yield spreadsheet, and the free Young Money Bootcamp eCourse.