Coast FIRE
Save enough early, then let compounding coast you to retirement.
With Coast FIRE you invest enough while you're young that compound growth alone will grow it into a full retirement nest egg by your target age, even if you never add another dollar. You keep working, but only to cover today's bills, not to keep saving for retirement.
Save hard
Early on
Then
Coast, no new saving
What Coast FIRE really means
You front-load your investing. Once you've saved a certain amount, compounding takes over: left untouched, it should grow into a full retirement nest egg by the age you choose. From then on you only need to earn enough to pay this year's bills, which opens the door to lower-stress or part-time work.
The math behind it
Take the nest egg you'll eventually want and divide it by decades of expected growth. The earlier you hit that smaller 'coast' amount, the less you ever have to save again. Time, not willpower, does the heavy lifting from there.
Who it tends to suit
People who saved aggressively early and now want to breathe: switch to a passion job, go part-time, take a career break, or simply spend more on life today while the earlier investments keep compounding quietly in the background.
A Coast FIRE example
A 30-year-old wants about $1.25 million by age 60. At a 7% average return, roughly $165,000 invested today would grow to that on its own, with no further contributions. Hit that number and you've 'coasted': keep working only to cover current expenses.
The upside
- ✓Removes the pressure to keep saving aggressively
- ✓Frees you to downshift to lower-paid, more enjoyable work
- ✓Starting early makes the coast number surprisingly small
The trade-offs
- !Relies on decades of market growth that isn't guaranteed
- !You still need income for all of today's expenses
- !A long downturn may mean topping up your savings again
- !Health insurance still has to be covered until Medicare
Whichever path you take, keep a cash emergency fund so a downturn never forces you to sell. How much to keep →
See if you're on track for Coast FIRE
Enter your income, spending, and savings into the FIRE calculator to see your FIRE number and the age you could reach it, then aim for a Coast FIRE budget.
Coast FIRE FAQs
What is Coast FIRE?
Coast FIRE is when you've invested enough that compound growth alone will reach your full retirement number by your target age, without adding any more. You keep working, but only to cover current expenses.
How do I calculate my Coast FIRE number?
Divide your future FIRE goal by expected growth over the years until retirement, roughly goal divided by (1 + return) raised to the number of years. A $1.25 million goal in 30 years at 7% is about $165,000 needed today.
Coast FIRE vs Barista FIRE, what's the difference?
Coast FIRE means your retirement is already funded by future growth and you work to cover current costs. Barista FIRE means a part-time job, often for health benefits, covers part of your expenses while investments cover the rest. They overlap, and some people do both.
Other flavors of FIRE
CalcWise is educational and not financial advice. FIRE targets rely on the 4% rule and long-run market assumptions that aren't guaranteed. Consider your own circumstances or a qualified advisor.