Coast FIRE: The Freedom to Work Because You Want To — Not Because You Have To
There’s a point in your financial life, often in your 40s or 50s, when you start wondering:
“Do I still need to push this hard… or have I already earned more freedom than I realize?”
That moment is what Coast FIRE captures so beautifully.
You don’t need to sell your business, retire early, or live off-grid.
You simply need to know that your retirement savings are already on track, and that your investments, left to grow, will take care of your future.
At that point, you’ve reached Coast FIRE, the place where you work from choice, not necessity.
What Is Coast FIRE?
Coast FIRE stands for “Financial Independence, Retire Early”, but with a twist:
it’s about coasting toward financial independence, not sprinting.
You reach Coast FIRE when your current investments are projected to grow, without any additional contributions, into the nest egg you’ll need for retirement.
In other words, your money can now work as hard as you have.
From that moment on, every dollar you earn only needs to cover your living expenses, not future savings goals.
You can switch to a lower-stress job, take time off, or explore a new business idea, without jeopardizing your retirement plan.
The Simple Math Behind Coast FIRE
Here’s the key question Coast FIRE answers:
“If I stopped saving for retirement today, would my portfolio still grow enough to meet my future needs?”
The calculation uses a straightforward present value formula:
[
\text{Required Savings Today} = \frac{\text{Future Portfolio Goal}}{(1 + r)^n}
]
The calculation uses a straightforward present value formula:
Where:
- r = your expected real (after-inflation) rate of return
- n = number of years until you retire
You can estimate this using a financial calculator, spreadsheet, or better with a planner who models these numbers precisely.
Example 1: Raj and Priya’s Second Act
Raj and Priya are both 47. Raj works in tech and Priya runs a boutique interior design firm. They’d love to slow down around 55 and perhaps move to Asheville, consult part-time, and spend more time with their college-age kids.
They estimate they’ll need $2 million (in today’s dollars) to retire comfortably at 65. Assuming a 5% real rate of return, their “Coast FIRE” savings target today is:
[
$2,000,000 ÷ (1.05)^{18} = $900,000
]
They already have $1.1 million invested across 401(k)s, IRAs, and a brokerage account.
That means they’ve already reached Coast FIRE and their savings can grow to $2 million by age 65 without another dime added.
Now they can make values-based decisions: Raj can step into a smaller company, Priya can scale her client load to fit her creativity instead of capacity. They’ve earned the right to work on their terms.
Example 2: Danielle, the Solo Business Owner
Danielle, 42, owns a small marketing agency. After 12 years, she’s profitable, debt-free, and tired of 70-hour weeks. She wonders if she can pay herself less, hire a manager, and work three days a week.
Her financial goal: retire at 62 with $1.8 million in today’s dollars.
Assuming 20 years until retirement and a 5% real return, her Coast FIRE number is:
[
$1,800,000 ÷ (1.05)^{20} = $679,000
]
Danielle’s current portfolio is $720,000.
She’s at Coast FIRE and she could coast from here, take a lower draw from her business, and let compounding do the rest.
Why Coast FIRE Matters More Than Ever
Coast FIRE isn’t about early retirement. It’s about flexibility, the freedom to design your career and life without fear of falling behind financially.
Here’s what that means in practical terms:
- Freedom to pivot. Change careers or industries without worrying about your 401(k) contribution rate.
- Permission to pause. Take a sabbatical to care for family or travel without derailing your future.
- Space to build something new. Start a business or passion project while your existing savings keep compounding.
- Room to breathe. Lower your stress without lowering your long-term security.
It’s not about escape, rather it’s about equilibrium.
How to Calculate Your Coast FIRE Number
You can get a rough estimate of your Coast FIRE number in three steps:
1. Know your retirement spending goal.
Estimate your annual retirement spending (after taxes) and multiply by 25; that’s your approximate future portfolio goal using the 4% rule.
Example: $120,000 annual spending × 25 = $3 million.
2. Pick a real rate of return.
Use a conservative assumption, typically 4%–5%, after inflation for a globally diversified portfolio.
3. Count the years until retirement.
If you’re 45 and plan to retire at 65, that’s 20 years.
Now plug the numbers into the formula:
What You Can Do Once You Reach Coast FIRE
[
\text{Required Savings Today} = \frac{\text{Future Portfolio Goal}}{(1 + r)^n}
]
Example:
[
$3,000,000 ÷ (1.05)^{20} = $1,132,000
]
If you’ve already saved around that amount, congratulations, you’re at Coast FIRE.
Reaching Coast FIRE doesn’t mean “stop saving forever.”
It means you have options.
Here are a few ways clients use that flexibility:
1. Downshift Intentionally
Take a role that trades income for sanity, such as a smaller firm, flexible hours, or remote work.
2. Pursue Passion Projects
Launch the nonprofit you’ve dreamed of. Write, paint, teach, or consult part-time.
3. Buy Time
Maybe you can afford to take every summer off or move from five days of work to four.
4. Bridge Family Seasons
Coast FIRE lets you support aging parents, teenagers, or a spouse’s new career path, without derailing your financial trajectory.
5. Redesign the Relationship with Work
When you no longer have to earn, you rediscover why you earn.
The Risks and Reality Checks
Coast FIRE is liberating, but it’s not foolproof. A few key risks to plan for:
- Market volatility. A few bad years early on can alter projections.
- Inflation. Sustained inflation lowers real returns, build in a cushion.
- Unexpected expenses. Health events, college costs, or family needs can require flexibility.
- Psychological discomfort. Many lifelong savers struggle to stop contributing. That’s normal and solvable.
- Changing goals. You may want more freedom and more savings later. Coast FIRE isn’t static; it’s iterative.
That’s where having a financial plan, one you update annually, turns this from a napkin calculation into a sustainable strategy.
Who Coast FIRE Works Best For
Coast FIRE tends to fit best for:
- Mid-career professionals who’ve built strong portfolios and want to rebalance life and work.
- Business owners after a liquidity event who want to slow down or explore new ventures.
- Dual-income couples where one partner wants to pivot careers or take time off.
- High-income earners who have enough margin to “front-load” their savings early in life.
It’s not for everyone. Those who started saving later, have high fixed expenses, or plan to retire early may need to keep contributing longer.
But for many, discovering you’re at Coast FIRE can be transformative, the financial version of exhaling.
How a Financial Advisor Helps You Navigate Coast FIRE
Reaching Coast FIRE might start with math, but staying there takes planning.
An experienced advisor can:
- Run Monte Carlo simulations to account for inflation, sequence of returns, and lifestyle changes.
- Stress-test the plan under multiple “what-if” scenarios.
- Design tax-efficient drawdown and investment strategies that protect your compounding.
- Serve as a sounding board for career transitions, business decisions, or lifestyle pivots.
- Help you find the right balance between growth and freedom so you stay confident, not complacent.
The Deeper Truth: Coast FIRE Isn’t About Money
At its core, Coast FIRE isn’t just a financial milestone, it’s a psychological shift.
It’s the moment you realize your hard work has bought you something more valuable than luxury: choice.
Choice to say no to burnout.
Choice to say yes to meaning.
Choice to align your time with what truly matters.
Financial independence isn’t about retiring early.
It’s about living intentionally and knowing that your money supports your life, not the other way around.
Ready to Discover Your Coast FIRE Number?
- Calculate your Coast FIRE number using your actual investments and goals
- Stress-test your plan across multiple scenarios
- Explore how much flexibility you already have to slow down, switch gears, or create more space for the life you want
Disclaimer
All written content is for information purposes only. Opinions expressed herein are solely those of Adviso Wealth, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.