Many Americans are worried about having enough money to live comfortably. Can they retire early with only a 401k, especially now with both the bond and stock markets suffering losses?
For retirement planning, we need to make several assumptions on life expectancy, anticipated returns from our income-producing assets, future life events, and unexpected expenses.
Is the goal to retain your current lifestyle after retirement, or will you reduce spending and live within your means? Even if your current lifestyle seems extravagant, you could somewhat reign in your current annual spending after retiring.
The Fat FIRE number will be different for everyone based on their living standards and has to be calculated individually. The Fat FIRE calculation is similar to the regular FIRE number, but it will be higher due to the larger margin of safety.