COAST FIRE (Cost Of A Self-Sustaining Target Financial Independence Retire Early) is a unique approach to retirement planning where you save aggressively early in your career, then stop contributing to retirement accounts altogether. Your existing investments continue to grow through compound interest until they reach your target retirement amount.
Key COAST FIRE Concept
Unlike traditional FIRE strategies that require continuous high savings rates, COAST FIRE allows you to "coast" once you've saved enough. Your money works for you through decades of compound growth.
How COAST FIRE Works
1. Calculate Your Number
Determine how much you need to save today for your investments to grow to your retirement goal by your target retirement age.
2. Save Aggressively
Focus intensively on reaching your COAST FIRE number through high savings rates, side hustles, or career advancement.
3. Coast to Retirement
Once you hit your number, stop contributing to retirement accounts. Let compound interest grow your investments over time.
4. Enjoy Freedom
With retirement secured, pursue passion projects, lower-stress jobs, or entrepreneurial ventures without financial pressure.
The Mathematics Behind COAST FIRE
Example Calculation
Scenario: 30-year-old wanting to retire at 65 with $60,000/year spending
Assumptions: 7% annual return, 3% inflation, 4% withdrawal rate
Step 1: Calculate required nest egg
$60,000 ÷ 4% = $1,500,000 needed at retirement
Step 2: Calculate COAST FIRE number
$1,500,000 ÷ (1.04^35) = $378,000 needed today
Result
Save $378,000 by age 30, then coast for 35 years to reach your $1.5M goal!
The Power of Compound Interest
The earlier you start, the more powerful compound interest becomes. A 25-year-old needs to save significantly less than a 35-year-old to reach the same COAST FIRE goal because they have more time for growth.
Key Benefits of COAST FIRE
Career Flexibility
Once you reach your COAST number, you can make career decisions based on passion, fulfillment, and work-life balance rather than just salary.
Reduced Financial Stress
Knowing your retirement is mathematically guaranteed provides tremendous peace of mind and reduces financial anxiety.
Sustainable Approach
Unlike extreme FIRE strategies requiring 50-70% savings rates indefinitely, COAST FIRE frontloads the sacrifice for long-term freedom.
Entrepreneurial Opportunities
With retirement secured, you can take calculated risks like starting a business, freelancing, or pursuing creative endeavors.
Who Should Consider COAST FIRE?
Ideal Candidates for COAST FIRE:
- Young professionals with high earning potential
- People who value career flexibility over maximizing wealth
- Individuals comfortable with front-loading sacrifice
- Those seeking work-life balance in their 30s and 40s
- Future entrepreneurs or career changers