Coastfire Calculator

Published by

Editorial Team

on

August 13, 2023

*Calculator can be found at the bottom of the page*

Imagine waking up each morning to a life free from the clutches of a boss or the monotony of a 9-to-5 routine. The liberty to travel, indulge in hobbies, and shape life on your own terms. This dream is no longer distant, as technological advancements have not only shifted how we interact with the world but also how we approach financial independence. Welcome to the era of COAST FIRE, where traditional retirement age and financial independence numbers might not be the only way to define your financial journey.

The COAST FIRE Paradigm:
In an age where technology gallops ahead, our approach to financial freedom also transforms. COAST FIRE empowers you to chase financial independence without relinquishing the option to retire early. It offers the flexibility to take calculated risks, explore passions, or reshape how you invest your time and resources, all while paving a path to your desired financial future.

Introducing the COAST FIRE Calculator:
The COAST FIRE Calculator serves as a guiding light for crafting your route towards financial independence and early retirement. This tool enables you to determine your COAST FI number and the time needed to achieve COAST FIRE—a concept that balances financial independence with the ability to retire early.

Understanding COAST FIRE:
COAST FIRE is the juncture where your existing savings or net worth is projected to reach a point where financial independence becomes a reality. In essence, you no longer need to worry about saving money; your income becomes self-sufficient to cover your living expenses. This milestone is achieved by allowing your existing nest egg to compound and grow in the stock market without withdrawing from it.

Crunching the Numbers: Calculating COAST FIRE:
To calculate your COAST FI number, the COAST FIRE Calculator considers several inputs:

Traditional Financial Independence Age: The age at which you wish to achieve financial independence, dictating the years available for your savings to grow.
Current Total Investments: Your net worth—assets minus liabilities—setting the stage for your financial journey.
Current Monthly Expenses: Your monthly spending, encompassing essentials and variable costs.
Monthly Total Savings Contribution: The total amount you save, including deductions for retirement and other savings.
Annual Interest Rate (%): Expected growth rate of investments, often around 8%, with inflation adjustments.
Withdrawal Rate in Retirement: The percentage of savings withdrawn annually to cover expenses.

Interpreting the COAST FIRE Calculator Results:
The calculator delivers key insights:

COAST FIRE Number: The sum required for financial independence—your “nest egg.”
Years to COAST FIRE: The time to attain COAST FIRE based on existing savings, expenses, and contributions.
Financially Independent Age If You COAST FIRE Today: Age when you can retire if you cease further contributions to savings.

Real-Life COAST FIRE Scenario:
Consider a family of four, spending $94k annually, with a net worth of $500,000. While traditional FIRE demands $2.34M, their untouched $500,000 could grow to this amount in two decades, allowing them to retire early. COAST FIRE grants the freedom to shift their focus, exploring part-time work, entrepreneurial ventures, or other pursuits.

Calculating Your COAST FIRE Target:
For COAST FIRE, aiming for 12 to 15 times your yearly expenses is a prudent rule of thumb. A spending of $50,000 would necessitate savings of $600,000 to $750,000, assuming a 4% annual withdrawal rate. Note that variables like investment returns and evolving expenses impact your journey.

COAST FIRE vs. Traditional FIRE:
COAST FIRE challenges the traditional FIRE model. While traditional FIRE mandates substantial savings, COAST FIRE allows leveraging existing assets to gradually attain financial independence. It’s a dynamic paradigm offering flexibility without compromising early retirement dreams.

COAST FIRE revolutionizes the path to financial independence and early retirement. As technology redefines our lives, our financial journey adapts too. The COAST FIRE Calculator offers a compass to navigate this journey, propelling us towards a life where financial freedom isn’t a distant dream, but a tangible reality that’s well within reach. Embrace the power of COAST FIRE, where the next chapter of financial empowerment awaits.

COAST FIRE Calculator

Traditional Financial Independence Age:
Current Total Investments:
Current Monthly Expenses:
Monthly Total Savings Contribution:
Annual Interest Rate (%):
Withdrawal Rate in Retirement (%):
Calculate