free Tier Analysis

Lean FIRE vs. Fat FIRE Allocations

Your portfolio should match your lifestyle. High Yield for Lean, Preservation for Fat.

DivAgent Research Team
2026-01-03
5 min read

Key Takeaways

  • •Lean FIRE (<$40k/yr): You have a capital shortage. You must prioritize Yield Density (Tier 3/4) to bridge the gap.
  • •Fat FIRE (>$100k/yr): You have a capital surplus. You must prioritize Preservation (Tier 1/2) to avoid losing your lifestyle.
  • •The Rule: As your net worth grows, your required yield usually drops.
  • •The Trap: Don't use a Lean strategy (100% JEPI) for a Fat portfolio. You will lose to inflation.

The Lean FIRE Portfolio ($400k Goal)

You are retiring on a shoestring. Your biggest risk is Cash Flow. You literally cannot pay rent if your yield drops.

Allocation: High Octane Lite.
• 40% QQQI (Growth + Income)
• 40% SPYI (Core Income)
• 20% BDCs (Maximum Yield)
Target Yield: ~12%. Income: $48,000/yr.

The Fat FIRE Portfolio ($2.5M Goal)

You are living large. Your biggest risk is Permanent Loss of Capital. You don't need 12% yield; 4% is plenty ($100k).

Allocation: The Fortress.
• 40% SCHD (Dividend Growth)
• 20% DIVO (Quality Options)
• 20% Bonds/Treasuries (Tier 1)
• 20% JEPI (Defensive Income)
Target Yield: ~4.5%. Income: $112,500/yr.

The Pivot

Most people start "Lean" to escape their job, then let their portfolio grow into "Fat" territory over 20 years by reinvesting the surplus. You must shift your allocation as you grow. Don't hold a Lean portfolio when you are Fat.

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About Our Analysis Standards

Data Verification

This article was last audited by our Research Team on 2026-01-03. We cross-reference all yield data with official prospectus filings and FactSet. Unlike automated screeners, we manually verify "Return of Capital" classifications to ensure your tax-efficiency data is accurate.

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DivAgent does not accept payment from ETF issuers, fund managers, or public companies to feature their products. Our Risk Tier Ratings (Tier 1 to Tier 5) are mathematically derived from volatility and drawdown metrics, not editorial opinion.

*Disclaimer: This content is for educational purposes only. Dividend yields are backward-looking and heavily influenced by share price movement. Past performance of a covered call strategy does not guarantee future results. Always consult a generic financial advisor before making portfolio decisions.