Coast FIRE: The Most Underrated Early Retirement Strategy

Imagine stopping all retirement savings at age 35 and still retiring a millionaire. That's Coast FIRE - perhaps the most achievable and stress-free path to financial independence.

What is Coast FIRE?

Coast FIRE means saving enough money early that compound interest alone will grow your nest egg to full financial independence by traditional retirement age. Once you hit your Coast FIRE number, you can "coast" - only earning enough to cover current expenses while your investments grow.

The Coast FIRE Formula

The magic formula: Coast FIRE Number = FIRE Number ÷ (1 + return rate)^years until retirement

Example:

• FIRE goal: $1,000,000 at age 60
• Current age: 30 (30 years to grow)
• Expected return: 7% annually
• Coast FIRE number: $1,000,000 ÷ (1.07)^30 = $131,367

Save $131,367 by age 30, and you can stop saving for retirement entirely!

Use our FIRE Calculator to find your personal Coast FIRE number.

Why Coast FIRE is Revolutionary

1. Reduced Stress

Once you hit your number, retirement savings pressure disappears. Work becomes about covering today's expenses only.

2. Career Flexibility

Take that lower-paying dream job. Start that risky business. Go part-time. Your retirement is already secured.

3. Life Balance

Instead of grinding for 20 years to full FIRE, you can enjoy life now while still securing your future.

4. Compound Interest Magic

Time is your greatest asset. Starting early means compound interest does the heavy lifting.

Coast FIRE vs Traditional FIRE

| Aspect | Traditional FIRE | Coast FIRE | |--------|-----------------|------------| | Savings Rate | 50-70% ongoing | High initially, then 0% | | Time to "Freedom" | 10-20 years | 5-10 years | | Work Requirement | None after FIRE | Part-time/flexible ongoing | | Stress Level | High until FIRE | Low after Coast number | | Lifestyle | Frugal throughout | Balanced after Coast |

How to Achieve Coast FIRE

Step 1: Calculate Your Numbers

• Determine your annual retirement expenses
• Multiply by 25 for your FIRE number
• Calculate your Coast FIRE target based on years to retirement

Step 2: Front-Load Savings

• Maximize 401(k) contributions
• Live like a student for 5-10 years
• Take advantage of employer matches
• Invest in low-cost index funds

Step 3: Hit Your Target

• Track progress monthly with our Net Worth Calculator
• Stay motivated - this is temporary extreme saving
• Consider side hustles to accelerate

Step 4: Coast

• Switch to covering expenses only
• Pursue passion projects
• Enjoy life knowing retirement is handled

Real Coast FIRE Examples

Example 1: The Software Engineer

• Age 25: Starts job at $80,000
• Saves 70% ($56,000/year) for 5 years
• Age 30: Hits $300,000 (Coast FIRE number)
• Ages 30-60: Works part-time, travels, raises family
• Age 60: Portfolio worth $2.2 million

Example 2: The Teacher Couple

• Combined income: $100,000
• Save 50% for 8 years
• Hit Coast FIRE at $400,000
• Both switch to part-time teaching
• Spend summers traveling with kids

Example 3: The Entrepreneur

• Saves aggressively in corporate job
• Hits Coast FIRE at age 35
• Quits to start business
• Business covers living expenses
• Retires at 55 with $1.5 million

Coast FIRE Variations

Barista Coast FIRE

Work part-time specifically for health insurance while coasting.

Flamingo FIRE

Save to half your FIRE number, then coast (your money doubles every 10 years at 7% return).

Slow FIRE

Extended coast period with very part-time work over 20-30 years.

Common Coast FIRE Questions

What if the market crashes?

Historical 7% returns include crashes. Over 30 years, markets have always recovered and grown.

What about inflation?

Use inflation-adjusted returns (7% real return becomes 4-5% after inflation).

Can I access retirement accounts early?

Yes, through Roth conversions, 72(t) distributions, or simply using taxable accounts initially.

What if I can't save 70%?

Even 30-40% savings rate can achieve Coast FIRE - it just takes a few more years.

Is Coast FIRE Right for You?

Coast FIRE is perfect if you:

• Are young (under 40)
• Can save aggressively for 5-10 years
• Want work-life balance sooner
• Have entrepreneurial interests
• Value experiences over early full retirement

The Coast FIRE Action Plan

1. Calculate your Coast FIRE number using our FIRE Calculator
2. Track your net worth monthly with our free tool
3. Maximize tax-advantaged accounts (401k, IRA, HSA)
4. Invest in index funds (VTSAX or similar)
5. Stay motivated - this is temporary!
6. Plan your "coast" life - what will you do?

The Bottom Line

Coast FIRE offers the best of both worlds: financial security without decades of extreme saving. By front-loading your retirement savings, you buy yourself decades of freedom and flexibility.

The best time to start? Today. The second best time? Also today.

Calculate your Coast FIRE number now and see how quickly you could achieve work-optional life.

---

Track your Coast FIRE journey with monthly check-ins at CalmWealth - the zen way to monitor your path to financial freedom.