At 8.7m networth and still wondering. Welcome to Bay Area

Run into on Reddit, I thought it’s appropriate to a lot of folks here.


He’s too young to shoot for just 4% return when 10 year treasury is already returning 1.5%.

He needs to accumulate another 10M. Can easily get to $20M net worth by age 60 and retire. And still potentially have a long and active life ahead.

I think he can easily fatfire right now and will never run out of capital. Just invest in S&P index fund. He has enough capital to withstand any short term ups and downs. No need to worry too much.

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I was being sarcastic. Of course he can FIRE. With $7.2M invested, it is all about how well he (or his financial advisor) manages the money. He should be able to do better than just invest in QQQ or SPY - probably can access some hedge fund and angel investing at that level.

At the very least, he can coast along at work. With $7.2M in the bank, he does not need to put pressure on himself to earn top dollar.
I think that if someone has managed to even accumulate $2M by 47, they can afford to coast at work. Don’t need to go after big promotions, or switching jobs just to get raises. Just try to stay employed for 10 more years and let compound interest work it’s magic

Not all hedge funds defeat SPY or QQQ. Warren Buffet made openly one million bet challenging hedge funds fail to defeat spy in 10 year timeframe and finally won !

If basic math knowledge, high school, sufficient time, personal interest and Microsoft excel are available , anyone can perform better than SPY or QQQ consistently year over year!

Hedge Funds are commission eaters…and is mainly for those big multi-millionaires (50M+) who does not have time and mindset to grow their funds.


I’m not sure.

Are you fatfire?

I agree. But he seems have concern. If he wants to be more conservative works (coast fire) for next 3 yr and earn additional 1.8M - pay down mortgage and save 300K for kids private school. He got tons of room with 7.2M with 3.5 SWR.

So, when do you think someone can begin to coast? By that, I mean, maintain one’s job, and not aggressively work for raises and promotions.

No idea. I retired at age of 42 without caring any concepts of FIRE.

Why retire so early, even if you can?


Tiring to work with and for turkeys.
Willing to work 24 hrs with no sleep for eagles like late Steve Jobs and Elon Musk.


Are you sure about that? I couldn’t keep up with Elon’s Saturday morning meeting because already stayed too late Friday night.

Better be just a Tsla stockholder and sleep all day long like what I do right now. Let other people do all the work for you.


I prefer to insult certain people all day long :sweat_smile:

Long ago, late Steve Job worked for me. Now Tim Cook works for me.


If you are financially independent or at least have enough financial reserves to not worry about your next pay check, then it makes it easier to work without feeling intimidated by all turkeys around you. Then, you can yourself become an eagle, rather than quitting because of a few turkeys. Why let the turkeys win, when you can easily win over them?


You can’t soar with :turkey: :expressionless:

But you can soar over them

Those who wants to learn about securing retirement, here is the CFA book (free as of now)
Secure Retirement

I also found good smaller book on Equity Valuation, to identify good companies for buy and hold (free as of posting), it has appx 90 pages core content.

Equity Valuation

I had to look up what “SWR” meant because to me, “SWR” means Standing Wave Ratio. :rofl: After looking it up, I realized that SWR = Savings Withdrawl Rate.

To me, the problem is that the reddit poster really is in the wrong frame of mind. Fat FIRE to me means 0% withdrawl rate. Anything with a SWR > 0 means you are consuming capital and not truly fat.

The original poster needs to accumulate enough income producing assets that throw off more income than is required for she/he to live. The excess income would be added back into the capital pool for reinvestment to grow net worth.

FAT is a state of mind where there is always more than enough, and waiting 10, 20, 30 years is just more time for excess income to be reinvested to grow more.

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I believe SWR actually stands for Safe Withdrawal Rate. Idea is to let you take out certain percentage and not letting your portfolio depleted indefinitely. While I support having income producing mechanism, I do think SWT stills have role in your FatFIRE plan. While ppl think 4% as standard, if you have fat portfolio and wants to be conservative you can plan for 3%. Your 10M portfolio is going to generate 300K income without you lifting a finger and forever growing.

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