1. What is FAT FIRE For Married Couples?

FAT FIRE (Financial Independence, Retire Early) for married couples calculates the retirement amount needed to sustain a luxurious lifestyle based on combined expenses and safe withdrawal rate (SWR).

2. How Does the Calculator Work?

The calculator uses the FAT FIRE formula:

Where:

• \( Combined Expenses \) — Total annual expenses for both partners ($)
• \( SWR \) — Safe Withdrawal Rate (decimal, typically 0.03-0.04)

Explanation: This formula calculates the total retirement portfolio needed to sustain your desired lifestyle indefinitely based on the 4% rule or your chosen withdrawal rate.

3. Importance of FAT FIRE Calculation

Details: Accurate FAT FIRE calculation helps married couples plan for financial independence with a luxurious retirement lifestyle, ensuring they have sufficient funds to maintain their desired standard of living throughout retirement.

4. Using the Calculator

Tips: Enter your combined annual expenses in dollars and your chosen safe withdrawal rate as a decimal (e.g., 0.04 for 4%). All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical SWR for FAT FIRE?
A: While 4% is traditional, many FAT FIRE practitioners use 3-3.5% for added safety in maintaining a luxurious lifestyle.

Q2: Should expenses include taxes?
A: Yes, your combined expenses should include all anticipated costs including income taxes, healthcare, and lifestyle expenses.

Q3: How does this differ from regular FIRE calculations?
A: FAT FIRE targets a higher expense level for a more luxurious retirement lifestyle compared to lean or regular FIRE.

Q4: Should we account for inflation?
A: The SWR typically accounts for inflation, but you may want to use real (inflation-adjusted) returns in your calculations.

Q5: Is this amount for both partners combined?
A: Yes, this calculation provides the total portfolio amount needed to support both partners' combined lifestyle expenses.