Fat FIRE: How I Zeroed Company Stock and Bitcoin Exposure, Reached a $30M Net Worth, and Built a Practical Plan for Early Retirement
Background in brief
– Male, under 40, recently married in a major U.S. city
– Former executive at a startup that IPO’d successfully
– Net worth after major gains: approximately $30 million
– Real estate: about $5.5 million (primary residence plus one income property; all mortgages paid off)
– Traditional investments: about $22.5 million (stocks, bonds, hedge funds, managed assets)
– Alternatives / passion assets: about $2 million (fine art, collectibles, vehicles, music gear, horses, startup opportunities)
– Major early gains included post-IPO equity and a 2017 Bitcoin investment, both now fully realized
– The “high-risk” phase is over: no remaining company stock or crypto exposure; taxes settled; finances stabilized
FatFIRE spending framework
– Focus: use the traditional investment portfolio for safe withdrawal rate modeling (roughly $22.5M allocated)
– Four life-stage scenarios with annual spending using portfolio-only withdrawal assumptions:
– Pre-kids: approximately $545k/year (2.42% withdrawal rate)
– Infants (0–4): approximately $700k/year (3.11%)
– School age (5–12): approximately $815k/year (3.62%)
– Teens (13–18): approximately $849k/year (3.77%)
– Major variable: caregiver costs (nanny/au pair) around $80k/year, expected to decline in later years
– Willing to share a full monthly breakdown upon request (highly granular)
Key lessons from the first year after FatFIRE
1) Leaving a passion-driven career is profoundly challenging. The commitment to a startup and the routine of executive life create a strong identity; stepping away requires deliberate timing and resolve. Don’t delay if you’ve validated your plan.
2) Engage a therapist specializing in executive transitions as early as possible. In practice, weekly sessions have been instrumental for redefining purpose beyond the professional grind. Budget around $400/month.
3) Trust the math and your intrinsic signal. It’s easy to chase “just a little more,” but true diversification—away from single-stock risk and crypto—reduces anxiety and clarifies decision-making.
4) Structure and purpose sustain longevity. A defined daily cadence provides continuity and meaning:
– Morning routine: make the bed, gym, sauna/spa
– Personal development: hobbies (golf, shooting, chess, skiing)
– Community and mentorship: coach/mentor entrepreneurs
– Light consulting: selective, <10 hours/month
– Investment research and management on the side
– Social and family time: cooking, sports, gatherings
– Sleep hygiene: avoid unnecessary alarms
5) Travel as a rewarding pursuit, with limits. Cap trips at about two weeks and consider traveling with friends or joining travel-focused clubs to expand networks and experiences.
6) Establish a spending and purchases framework with your partner. Agreeing on thresholds (for example, discussing items over $1k) keeps budgets aligned and reduces friction across investments, flights, and big-ticket purchases.
7) Embrace the retirement label openly. Owning the retirement identity reduces discomfort and awkward conversations, enabling a smoother personal transition.
Closing thoughts
– The journey to FatFIRE is deeply individual, shaped by early wealth events, risk tolerance, and personal priorities. This plan centers on long-term sustainability, disciplined diversification, and purposeful daily structure.
– If you’re exploring a similar path, I’m open to questions about general approaches, risk management, or planning steps—but I won’t be sharing personal doxxing details.
If you’d like more granular data or a sample month-by-month withdrawal schedule, I’m happy to provide it in a follow-up.
