Question 1

What is Coast FIRE?

Accepted Answer

Coast FIRE means you have enough invested today that, even if you never contribute another dollar, compound growth will carry your portfolio to your target retirement number by your planned retirement age. You can 'coast' — working just enough to cover current expenses — without worrying about retirement savings.

Question 2

How is Coast FIRE different from regular FIRE?

Accepted Answer

Regular FIRE (Financial Independence, Retire Early) requires accumulating enough to cover all future expenses from your portfolio immediately. Coast FIRE requires a much smaller initial amount — you just need enough invested early so compound interest does the heavy lifting over decades.

Question 3

What return rate should I use?

Accepted Answer

7% is the most commonly cited inflation-adjusted average return for a diversified index fund portfolio, based on historical S&P 500 data adjusted for ~3% inflation. Conservative planners might use 5–6%; optimistic projections might use 8–9%. We recommend 7% as a balanced estimate.

Question 4

What's the 4% rule for calculating my target nest egg?

Accepted Answer

The 4% rule (from the Trinity Study) suggests you can safely withdraw 4% of your portfolio annually in retirement with very low risk of running out of money. To find your target nest egg, multiply your expected annual retirement expenses by 25. For $60,000/year, you'd need $1,500,000.

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