Frequently Asked Questions
What is Coast FIRE?
Coast FIRE is when your existing investments have grown enough that they'll reach your full FIRE number by traditional retirement age (65) through compound growth alone — without any additional contributions. You only need to cover current expenses.
How is Coast FIRE different from regular FIRE?
Regular FIRE requires enough to withdraw 4% annually immediately. Coast FIRE requires enough that compound growth alone will build your full FIRE number by 65. Coast FIRE lets you work less, take lower-paying jobs, or semi-retire early.
What is the 25x rule for FIRE?
The 25x rule (based on the 4% rule) states you need 25 times your annual expenses saved to retire. If you spend $50,000/year, you need $1,250,000. This comes from the Trinity Study showing a 4% withdrawal rate has a high success rate over 30 years.
What return rate should I assume?
A 7% annual return is a common assumption for a diversified US stock portfolio (historically 10% nominal, ~7% after inflation). For a more conservative approach, use 5-6% which accounts for a mix of stocks and bonds.
Is Coast FIRE safe?
Coast FIRE assumes consistent market returns. A major market downturn early on (sequence of returns risk) could delay your Coast FIRE timeline. It's wise to have a 1-2 year cash buffer and be flexible with your Coast FIRE date. Diversification across index funds reduces risk.
What should I do after reaching Coast FIRE?
After Coast FIRE, you can: 1) Switch to a passion job that covers expenses, 2) Go part-time, 3) Start a business without financial pressure, 4) Take a sabbatical, 5) Focus on side projects. The key is you no longer NEED to save for retirement — compound growth handles the rest.