Coast FIRE

Why It Matters

Once you hit Coast FIRE, the math is working for you. Compound growth carries your portfolio to your target number by your chosen retirement age. You still need to cover your current living expenses, but you no longer need to save for retirement.

This doesn't mean you stop working. It means the pressure to save aggressively disappears. Many people who reach Coast FIRE switch to lower-stress jobs, work fewer hours, or take career risks they wouldn't have considered before because the retirement math is already solved.

How It's Calculated

Your Coast FIRE number depends on three things: your target FI number, your expected annual return, and how many years until you plan to retire. The formula discounts your FI number back to today using compound interest.

For example, if your FI number is $1.2 million, you expect 7% real returns, and you're 20 years from retirement, your Coast FIRE number is roughly $310,000. Once you have $310,000 invested, you can "coast."

The Catch

Coast FIRE assumes your investments grow at a consistent rate and you don't touch them. Market downturns, unexpected withdrawals, or changing your retirement age all shift the number. It's a planning tool, not a guarantee.

Related Concepts

Coast FIRE is often confused with Barista FIRE, but they're different. Coast FIRE means you've stopped saving but still work full-time to cover expenses. Barista FIRE means you've downshifted to part-time work, using a combination of your part-time income and a smaller savings base to cover expenses while your investments grow.