Coast FIRE: How to Let Compound Interest Do the Work
Coast FIRE is the most achievable path to financial independence for most people. Here is what it means and how to calculate your number.
What Is Coast FIRE?
Coast FIRE means you have invested enough that — without any additional contributions — your portfolio will grow to your FI number by traditional retirement age (65). You can "coast" from here.
Why This Changes Everything Psychologically
Once you hit your Coast FIRE number, the pressure is off. You only need to earn enough to cover current expenses. You do not need to aggressively save anymore.
How to Calculate Your Coast FIRE Number
Coast FIRE Number = FI Number / (1 + r)^n
Where r = expected annual return (e.g., 0.07 for 7%), n = years until traditional retirement age.
Example: FI Number = $1,500,000. Years to 65 = 25. Expected return = 7%.
Coast FIRE Number = $1,500,000 / (1.07)^25 ≈ $277,000
If you have $277,000 invested and never contribute another dollar, you will have ~$1.5M by 65 assuming 7% average annual returns.
The Path to Coast FIRE
Focus maximum savings in your 20s and early 30s. Once you hit your Coast number, you have permanent flexibility in how you work.
After Coast FIRE
Many people use this point to transition to more meaningful, lower-paying work. The financial pressure is gone — you only need to cover current expenses.
Conclusion
Coast FIRE is often achievable within 10–15 years for people who start investing early and consistently. Calculate your number and make it a target.
Educational disclaimer: This content is for educational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making financial decisions.
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