Why CoastFIRE

CoastFIRE is all about saving early and letting your savings grow while you go about living.

Usually reserved for those with an early start, you can save enough that by the time you reach retirement, any investments should have compounded to enough to live on. Based on historical averages. This is key, nothing is guarenteed.

The goal then after you reach this coastFIRE point is to have more options at work and life. Many people have reduced hours, found new, less stressful jobs or pursued passions that they held off on. Instead of working that meaningless job that allowed you to save this money you could move to something like teaching, freelance, or become a barista. Its lifestyle design, you give yourself freedom and you design a life that you do not need to escape from.

The world really does become completely available to you here. It all depends on how much income YOU need. Which is obviously completely dependent on lifestyle and expenses.

Someone who is CoastFIRE might have $500k by 30 and allow there investments to grow until traditional retirement age of 65. At 65 with an 8% growth and 3% inflation they will have $2.758 million in todays dollars. Which would be about $90k a year to live off of. This is assuming a 5% real return which is small compared to the average 6.37% that the S&P 500 has had since 1957.

I have chosen this path due to being able to secure a large savings rate early in my career. I am now officially coastFIRE and have reduced the effort I give at work and towards receiving promotions. This was my first step. Farther down the line as my coastFIRE gets more and more secured I plan to change careers and completely stop investing as I focus on now, travelling and living.