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Coast FIRE is one of the most achievable paths to financial independence, yet it's often misunderstood. Unlike traditional FIRE that requires aggressive saving until you can retire immediately, Coast FIRE lets you stop saving entirely while still reaching financial independence by your desired retirement age.

What You'll Learn in This Guide

What Coast FIRE is and how it differs from traditional FIRE

How to calculate your personal Coast FIRE number

Real-world examples of Coast FIRE in action

Strategies to reach Coast FIRE faster

Common mistakes to avoid on your Coast FIRE journey

Life after Coast FIRE - what to do once you reach your number

What is Coast FIRE?

Coast FIRE means you've saved enough money that compound growth alone will carry you to full financial independence by your target retirement age, even if you never save another dollar.

The Coast FIRE Advantage

Once you reach your Coast FIRE number, you can:

Stop aggressive saving entirely

Take lower-paying jobs you enjoy more

Start a passion project or business

Travel or take extended breaks

Live more freely knowing retirement is handled

Coast FIRE vs Traditional FIRE FIRE Strategy Comparison Aspect Traditional FIRE Coast FIRE
Savings Rate   50-70% of income until retirement   Aggressive for 5-10 years, then minimal  
Timeline   10-15 years of aggressive saving   Shorter accumulation, longer coast period  
Retirement Age   Immediate when target reached   Traditional retirement age (60-65)  
Lifestyle Flexibility   Minimal during accumulation   Maximum after reaching Coast FIRE  
Risk Level   Higher (immediate retirement)   Lower (gradual transition)  
Income Requirements   Must cover all expenses immediately   Can work part-time or lower-paying jobs  
Key Differences

Traditional FIRE: All-or-nothing approach with immediate retirement

Coast FIRE: Gradual transition with decades of lifestyle flexibility

Same outcome: Both achieve financial independence

Different path: Coast FIRE offers more lifestyle options

How to Calculate Your Coast FIRE Number

The Coast FIRE formula is:

Coast FIRE Number = FIRE Number ÷ (1 + return rate)^years to retirement

Example Calculation

Let's say you're 30 years old and want to retire at 60 with $80,000 annual income:

FIRE Number: $80,000 ÷ 0.04 = $2,000,000 (using 4% rule)

Years to retirement: 60 - 30 = 30 years

Expected return: 7% annually

Coast FIRE Number: $2,000,000 ÷ (1.07)^30 = $262,000

This means if you save $262,000 by age 30, you can stop saving entirely and still have $2 million at 60!

Real Coast FIRE Examples Example 1: The Teacher Category Details
Person   Sarah, age 25, teacher making $45,000  
Goal   Retire at 62 with $60,000 annual income  
Coast FIRE number   $195,000  
Strategy   Save aggressively for 8 years, then coast for 29 years  
Monthly savings needed   $2,000 (53% savings rate)  
Example 2: The Tech Worker Category Details
Person   Mike, age 35, software engineer making $120,000  
Goal   Retire at 55 with $100,000 annual income  
Coast FIRE number   $633,000  
Current savings   $400,000  
Additional needed   $233,000  
Timeline   3-4 years of aggressive saving  
Example 3: The Late Starter Category Details
Person   Lisa, age 45, nurse making $70,000  
Goal   Retire at 67 with $70,000 annual income  
Coast FIRE number   $1,170,000  
Strategy   Aggressive saving but still achievable  
Monthly savings needed   $4,000 (69% savings rate)  
Coast FIRE Strategies 1. Front-Load Your Savings

The earlier you reach Coast FIRE, the more freedom you have. Consider:

Living on one income if you're a couple

House hacking to reduce expenses

Side hustles to accelerate savings

Geographic arbitrage (move somewhere cheaper)

2. Optimize Your Investment Returns

Coast FIRE depends heavily on compound growth:

Stock market index funds (historical 10% returns)

Target date funds for automatic allocation

Roth IRAs for tax-free growth

401(k) matching is free money

3. Choose Your Coast FIRE Lifestyle

Once you hit Coast FIRE, you have options:

Barista FIRE: Work part-time for health insurance

Geoarbitrage: Move to lower cost of living area

Passion projects: Start that business you always wanted

Career pivot: Take that lower-paying dream job

Common Coast FIRE Mistakes 1. Underestimating Inflation

Use real returns (7% vs 10% nominal)

Plan for healthcare cost increases

Consider lifestyle inflation over decades

2. Ignoring Taxes

Traditional 401(k) withdrawals are taxable

Consider Roth conversions during low-income years

Plan for tax-efficient withdrawal strategies

3. Not Having a Post-Coast Plan

What will you do after reaching Coast FIRE?

How will you handle health insurance?

Will you have enough social stimulation?

Coast FIRE Age Milestones

Here's when to aim for Coast FIRE based on your retirement goals:

For Retirement at 65 Age You Reach Coast FIRE Percentage of Final FIRE Number Needed Years of Compound Growth
25   15%   40 years  
30   22%   35 years  
35   35%   30 years  
40   54%   25 years  
45   76%   20 years  
50   100%   15 years  
For Retirement at 55 Age You Reach Coast FIRE Percentage of Final FIRE Number Needed Years of Compound Growth
25   35%   30 years  
30   50%   25 years  
35   76%   20 years  
40   100%   15 years  
45   162%   10 years  
Is Coast FIRE Right for You?

Coast FIRE works best if you:

✅ Can save aggressively for 5-10 years

✅ Want maximum lifestyle flexibility

✅ Don't mind working until traditional retirement age

✅ Trust in long-term market returns

✅ Have predictable retirement goals

Coast FIRE might not work if you:

❌ Want to retire before 55

❌ Have unpredictable income

❌ Prefer steady, consistent saving

❌ Need psychological security of larger balances

Getting Started with Coast FIRE

Calculate your Coast FIRE number using our free calculator

Assess your current savings and investment returns

Create a timeline for reaching Coast FIRE

Optimize your savings rate and investment strategy

Plan your post-Coast lifestyle and income needs

The Bottom Line

Coast FIRE offers a middle ground between aggressive traditional FIRE and conventional retirement planning. By front-loading your savings and trusting compound growth, you can achieve financial freedom with decades of lifestyle flexibility.

The key is starting early and saving aggressively during your highest-earning years. Once you hit your Coast FIRE number, you've essentially secured your financial future and can focus on living life on your terms.

Ready to calculate your Coast FIRE number? Use our free calculator to see exactly how much you need to save to coast to financial independence.