Coast FIRE: Complete Guide to Coasting to Retirement
What Coast FIRE means, how it works, and how to calculate if you've hit your Coast FIRE number.
Key Takeaways
- 1Coast FIRE: Save aggressively early, then stop saving and let compound growth carry you to retirement.
- 2You've hit Coast FIRE when your current portfolio will grow to your retirement goal without additional contributions.
- 3Allows you to take lower-stress jobs, work part-time, or pursue passion projects in your 30s-40s.
- 4Example: $200k at age 35 grows to $1.6M by age 65 at 7% returns - without adding a dollar.
- 5Coast FIRE provides psychological freedom even if you keep saving.
- 6The risk: Assuming 7% returns for 30 years - market volatility can derail projections.
What Is Coast FIRE?
**Coast FIRE** means you've saved enough that your investments will grow to your retirement goal by traditional retirement age (65) **without any additional contributions**. Once you hit Coast FIRE, you can "coast" - work less, take lower-paying passion jobs, go part-time, or simply reduce stress knowing retirement is handled.
- Save aggressively in 20s and early 30s
- Hit Coast FIRE number (typically $150k-300k by age 30-35)
- Stop retirement contributions - just cover living expenses
- Let compound growth do the rest
- Retire at normal age (65) with full portfolio
The Power of Starting Early
Coast FIRE rewards early savers dramatically. $100k invested at age 30 becomes $761k by 65 at 7% returns. Start at 40? You'd need $277k to reach the same amount.
How Coast FIRE Actually Works
Coast FIRE relies on compound growth over decades. Here's a real example: **Sarah, age 32:** - Current portfolio: $200,000 - Retirement goal: $1.5M at age 65 - Years until retirement: 33 At 7% annual returns: $200,000 grows to $1.87M by age 65. **Sarah has hit Coast FIRE.** She can stop retirement contributions completely and still exceed her goal.
- She only needs to earn enough to cover current expenses
- Can take a lower-stress $50k/year job instead of grinding for $100k
- Could work part-time or freelance
- Retirement is mathematically handled
How to Calculate Your Coast FIRE Number
To calculate if you've hit Coast FIRE, use this formula: **Coast FIRE Number = Retirement Goal ÷ (1 + Return Rate)^Years**
- 1**Determine retirement goal:** Use 25x rule. Need $60k/year? Goal = $1.5M
- 2**Count years to retirement:** Usually age 65 minus current age
- 3**Choose expected return:** 7% is common (historical stock market average)
- 4**Calculate using formula:** $1.5M ÷ (1.07)^30 = $197,000
- 5**Compare to current portfolio:** If you have $197k+, you've hit Coast FIRE
| Current Age | Years to 65 | Need at 65 | Coast FIRE Number (7%) |
|---|---|---|---|
| 25 | 40 | $1.5M | $100,000 |
| 30 | 35 | $1.5M | $141,000 |
| 35 | 30 | $1.5M | $197,000 |
| 40 | 25 | $1.5M | $277,000 |
| 45 | 20 | $1.5M | $388,000 |
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Coast FIRE Numbers by Age and Goal
Different retirement goals require different Coast FIRE numbers. Here's what you need by age:
| Age | $1M at 65 | $1.5M at 65 | $2M at 65 | $2.5M at 65 |
|---|---|---|---|---|
| 25 | $67k | $100k | $134k | $167k |
| 30 | $94k | $141k | $188k | $235k |
| 35 | $131k | $197k | $262k | $328k |
| 40 | $184k | $277k | $369k | $461k |
| 45 | $259k | $388k | $517k | $647k |
| 50 | $363k | $544k | $725k | $907k |
Assumes 7% annual returns
Adjust for Your Return Assumption
Conservative investors using 6% should increase numbers by ~20%. Aggressive investors at 8% can reduce by ~15%. The formula works with any return rate.
Pros and Cons of Coast FIRE
Coast FIRE offers unique benefits and trade-offs:
- ✅ **Pros:**
- Freedom to pursue passion work without worrying about retirement
- Reduced stress and burnout risk
- Can take sabbaticals, travel, or try entrepreneurship
- Still retire at normal age with full portfolio
- Provides security if forced to take lower-paying work
- ❌ **Cons:**
- Requires aggressive saving in 20s/early 30s (hardest earning years)
- Assumes consistent 7% returns for 30+ years (not guaranteed)
- Doesn't provide early retirement - you work until 65
- Healthcare before 65 still requires employment or ACA
- Inflation could increase your retirement needs
- Market crashes in early Coast years can derail the plan
Coast FIRE vs Other FIRE Types
Understanding where Coast FIRE fits:
| Type | Retirement Age | Work After FI | Portfolio Needed | Difficulty |
|---|---|---|---|---|
| Regular FIRE | 30s-40s | Optional | $1M-2M | Very High |
| Coast FIRE | 65 | Yes (cover expenses) | $150k-400k | Moderate |
| Barista FIRE | 40s-50s | Yes (part-time) | $500k-1M | High |
| Fat FIRE | 40s-50s | No | $2.5M-5M | Extremely High |
| Lean FIRE | 30s-40s | No | $600k-1M | High |
Coast FIRE Strategy: How to Get There
To hit Coast FIRE by age 35:
- 1**Save aggressively in your 20s/early 30s:** Target 40-60% savings rate
- 2**Max tax-advantaged accounts:** 401k, IRA, HSA first
- 3**Invest in growth assets:** Stocks (80-100%) while young
- 4**Track your Coast FIRE number:** Calculate annually to see progress
- 5**Consider geo-arbitrage:** Live cheaply while saving, then relocate for quality of life
- 6**Once you hit Coast FIRE:** Shift focus to enjoying work/life balance
Real Coast FIRE Path
Tom earned $75k from age 24-34, saved 55% ($41k/year). After 10 years with 7% returns: $568k portfolio. At age 34, this grows to $4.3M by 65. He switched to teaching ($45k/year) - retirement handled.
Coast FIRE Assumes Smooth Sailing
Coast FIRE projections assume consistent 7% returns for 30-40 years. In reality, markets crash, stagnate, and boom. If you hit Coast FIRE right before a lost decade (2000-2010), your projections could fail. Consider staying 10-20% above your Coast number as a buffer.
Protect Your Coast FIRE Journey
Coast FIRE requires your portfolio to survive and grow for 30-40 years. A major crash early in this period can permanently derail projections. Adding gold (5-15% of portfolio) provides crash protection during the critical early Coast years.
- Gold often rises when stocks crash (protects your Coast projections)
- Zero correlation to stock market reduces portfolio volatility
- No ongoing management needed - perfect for "coasting"
- Can hold in tax-advantaged Gold IRA
- Provides peace of mind during market turbulence
Frequently Asked Questions
1What does Coast FIRE mean?
Coast FIRE means you've saved enough that your current portfolio will grow to your retirement goal by age 65 without any additional contributions. You can "coast" by working just enough to cover living expenses, letting compound growth handle retirement.
2How much do I need for Coast FIRE?
It depends on your age and retirement goal. At age 30 targeting $1.5M by 65, you need ~$141k. At 35, you need ~$197k. Use the formula: Retirement Goal ÷ (1.07)^years-to-65. The younger you are, the less you need.
3What's the difference between Coast FIRE and regular FIRE?
Regular FIRE means you can retire completely NOW. Coast FIRE means your retirement is funded but you still work until normal retirement age (65). Coast FIRE requires much less money ($150k-400k vs $1M-2M) but doesn't provide early retirement.
4Can you retire early with Coast FIRE?
No. Coast FIRE means working until traditional retirement age (65). However, you can take lower-stress work, work part-time, or pursue passions since you're only covering current expenses, not saving for retirement.
5What if the market crashes after I hit Coast FIRE?
This is the biggest risk. If you hit Coast FIRE with $200k and markets crash 40%, you're back to $120k - below your Coast number. This is why staying 10-20% above your minimum Coast FIRE number provides a safety buffer.
6Is 7% return realistic for Coast FIRE calculations?
7% is the historical average for US stock market (after inflation). However, future returns aren't guaranteed. Conservative calculators use 6%, aggressive use 8%. Most Coast FIRE planners use 6-7% to build in safety margin.
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