Hi all,

I am 36 years young and looking to FatFire within the next 7 years in a Midwest USA LCOL area. Current net worth is $6.5MM. I work in a pretty high stress environment where I can have years where I make $1MM in W2 income and the following year make $100k. Essentially sales in a volatile industry😂.

Although I track both, I make projections for my retirement based on future cash flow rather than net worth. I own some commercial property that will be free and clear in 7 years and also own LP interests in commercial RE, alongside a hefty position(relative to my net worth) in two public non-traded REITs(yes I am familiar with the risks and very comfortable with these two conservative REITs).

My question is do most of you have a net worth target or a cash flow target? With my current projections, I could retire at my 43rd birthday with an annual cashflow in the $500k range but I project that we will only need about $20k/month to live comfortably. I plan to reinvest the excess, which should continue to increase our cashflow at a decent clip. It all sounds really good on paper, but I am just making sure that I am thinking of this correctly! Fatfire seems more about cashflow than it does networth, correct? Does what I outline above sound like fatfire or more like fire?

On a side note, my desire to fatfire at 43 puts me retired the year my oldest child starts high school and will enable me to coach/be as active as he wants me to be in his athletics and academics. Life is short and I only have one go at this. I could work a couple more years, but I think I would regret not spending more time with family over a regret of not working a couple more years to have a little more income if I were to kick the bucket early in life. What do you all think of my thought process there as well?

Update more info: The $500k is purely passive income from real estate, dividends, and REIT distribution. I would not be dipping into principal. I would actually be adding to investments annually with the excess $200k . Sorry I wasn’t clear on that before.