The FIRE movement emphasizes achieving financial independence through a target net worth, typically between $3 million to $5 million for ChubbyFIRE. A Redditor, who reached a $5 million net worth, is uncertain if their planned $200,000 annual spending is sufficient for retirement. While the Redditor considers themselves frugal, they express concerns over potential future expenses like medical bills and education costs. Commenters note that the withdrawal amount should be adjusted for taxes, suggesting a more realistic budget might be around $160,000, raising further doubts about their financial readiness for retirement.
"If you jump into this, you'll find a Redditor who has hit a post on r/ChubbyFIRE $5 million net worth. With this money, the goal is to live on a $200,000 annual spend, but they are unsure if it's enough."
"Having a net worth of at least $3 million to $5 million qualifies as ChubbyFIRE. This answers the Redditor's first question, as to whether they are truly a member of this club."
"At a $5 million net worth, this gives them an annual $200,000 spend based on the 4% safe withdrawal rate rule... Their concerns extend beyond just minimum net worth and labeling themselves as a member of the ChubbyFIRE club."
"A $200,000 SWR is before taxes, so it's far more likely this number is closer to $160,000... even as they self-describe their family as frugal, they are concerned about their financial standing in other aspects."
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