Coast FIRE stands for "Coasting Financial Independence, Retire Early." Unlike traditional FIRE (Financial Independence, Retire Early), where you aim to accumulate enough savings to retire early completely, Coast FIRE takes a different approach. It involves reaching a point where your investments can grow to cover your retirement expenses without further contributions.

How Does FIRE Work?*

Before delving into Coast FIRE, let's grasp the basics of the broader FIRE movement. FIRE involves aggressive saving and investing early in life to achieve financial independence and retire early. The typical FIRE strategy involves saving a significant portion of your income, often 50% or more, and investing it in assets like stocks, real estate, or businesses that generate passive income.

Coast FIRE Goal vs. Full Retirement Goal

The Coast FIRE goal is to reach a stage where your investments can grow to cover your retirement expenses without additional contributions. This means you can "coast" towards retirement without saving more, though you can continue to work or save at a reduced rate. In contrast, the Full Retirement Goal in traditional FIRE is to accumulate enough savings to retire early completely, usually in your 30s or 40s, and rely solely on your investments for income.

About the Coast FIRE Calculator

This Coast FIRE Calculator is designed to assist you in planning and tracking your Coast FIRE progress. By inputting your current situation and retirement expectations, you can visualize how close you are to reaching Coast FIRE and adjust your strategies accordingly.

Using the Coast FIRE Calculator

**Step 1: Input Your Current Situation**
a. **Current Age in Years**
Enter your current age to gauge where you are on your Coast FIRE journey. The younger you start, the more time your investments have to grow.
b. **Current Net Worth**
Input your current net worth, including assets like savings, investments, and property minus any debts or liabilities. This helps determine your starting point towards Coast FIRE.

Your Retirement Expectation

Specify the age at which you aim to achieve Coast FIRE and the amount of income you'll need annually during retirement. This could include expenses like housing, food, healthcare, and leisure activities.
**Setting Investment Parameters**
**Investment Growth Rate**
Estimate the average annual growth rate of your investments. This rate accounts for the potential increase in the value of your investments over time.

Inflation Rate

Consider the average annual inflation rate, which affects the purchasing power of your money. Factoring in inflation helps you plan for future expenses accurately.

Tracking Your FIRE

Don't let time slip away! Start tracking your Coast FIRE progress now with Portseido. Our platform provides tools and insights to monitor your investments, adjust your strategy, and stay on course towards financial independence.

Conclusion

Coast FIRE offers a more relaxed approach to early retirement, allowing you to enjoy life while still working towards financial independence.