Důchod, renta a FIRE
Lean FIRE, Fat FIRE, and Coast FIRE: Three Paths to Financial Independence
Key takeaways
- Lean FIRE: minimal expenses, fast financial independence, but little buffer for unexpected costs.
- Fat FIRE: more comfortable retirement income, but requires a significantly larger portfolio and a longer journey.
- Coast FIRE: you stop actively saving, but the portfolio reaches the goal on its own through compound growth.
- Barista FIRE combines a modest portfolio with partial income to cover some expenses.
- Each variant requires a different FIRE number and a different risk tolerance.
FIRE is not one strategy — there is a spectrum of approaches that differ in target portfolio size, lifestyle standard, and relationship to work after achieving independence.
Lean FIRE: minimal, free
Lean FIRE is the most demanding variant from a lifestyle perspective. Investors target a portfolio covering minimal expenses — in the Czech Republic roughly CZK 300,000–400,000 per year (CZK 25,000–33,000 per month). The FIRE number is around CZK 7.5–10 million. The advantage is speed: achievable in 8–12 years from a median income with disciplined saving. The disadvantage is a small buffer for unpredictable expenses, inflation, or health issues. Sequence risk is more sensitive with a small portfolio.
Fat FIRE: comfortable retirement income
Fat FIRE comes with expenses of CZK 800,000/year and above. FIRE number: CZK 20–30 million. The portfolio needs to be significantly larger and the journey longer. The reward is room for travel, healthcare, supporting children, and unexpected expenses without stress. In the Czech Republic, Fat FIRE is achievable for investors with above-average incomes or an exceptionally high savings rate sustained over 15–20 years.
Coast FIRE: let it sail
Coast FIRE is a specific variant: you reach a point where the portfolio — without any further contributions — grows through compound interest to the target value by the time you retire. You stop actively saving and work only enough to cover your current expenses. The portfolio works for you. Example: at age 35 you have CZK 5 million and aim for CZK 15 million at age 60 — at a 7% real return the portfolio will "coast" there on its own without further contributions.
How to choose a variant
It depends on three things: what level of expenses you consider adequate, how long you are willing to wait, and how much uncertainty you can tolerate. Lean FIRE is fast but sensitive to crises. Fat FIRE is comfortable but slow. Coast FIRE is elegant for those who do not want to stop working entirely. Compare with the FIRE number calculation and the portfolio projection.
FAQ
What is Lean FIRE?
A FIRE variant with minimal expenses — roughly CZK 25,000–33,000 per month in the Czech Republic. FIRE number: CZK 7.5–10 million. The fastest route to independence, but a small buffer for unexpected costs or inflation.
What is Fat FIRE?
Comfortable retirement income with expenses of CZK 65,000 per month and above. FIRE number: CZK 20–30 million. More room for lifestyle, healthcare, and unexpected expenses. The journey is longer, but the reward is more comfortable independence.
How does Coast FIRE work?
You reach a point where the portfolio, without further contributions, grows to the target value on its own through compound interest. You stop actively saving and work only enough to cover current expenses. The portfolio "sails" on autopilot.
Is FIRE realistic in the Czech Republic?
Yes. Relatively lower living costs, access to global ETFs, and rising average wages make the Czech Republic a favourable environment. Lean FIRE is achievable for middle-income households in 10–15 years with disciplined investing.