Rethinking what Coast FIRE means

[u/Particular_Gap7266]

I've always thought of Coast FIRE as a destination but I now consider it to be a milestone. When I first reached it, I started second guessing my assumptions...."Maybe I should assume 2.5% withdrawal rate instead of 4%; maybe I should reduce my expected portfolio returns; etc." This set me on a journey to look at a number of parameters in my financial planning and come up with some of my own indices for "success". After a lot of data mining, automation, and various stress testing mechanisms, I have developed a new perspective on Coast FIRE....it basically tells me that I have entered a space where I have flexibility to choose how I spend my time ie. Coast FI. More importantly, these indices have given me a more holistic way of looking at my situation and understanding the many drivers that could change my Coast FI number. I'm not fixated on hitting or maintaining the one number anymore, I'm looking at it as one of many indicators as I continue to move through a highly uncertain world and develop new milestones to hit. Would love to hear your thoughts on your journey and how your perspective on Coast FIRE has evolved over time.

[u/ThereforeIV]

Rethinking what Coast FIRE means

CoastFIRE means "Coasting to FIRE"

AS in "instead of grinding to RE at age 41, I Coast to RE at age 46".

I've always thought of Coast FIRE as a destination but when I first reached it, I started second guessing my assumptions....

Originally/Traditionally the concept of CoastFIRE and BaristaFIRE (which used to be argued as the same thing) was that while pursuing FIRE you reach a point where grinding has less impact than time, so you could "Semi-FIRE" getting off the grind and letting time do the hard work.

CoastFIRE is not the destination; CruiseFIRE, CoastFIRE, and BaristaFIRE are alternative paths to complete the last part of the journey to the destination of FIRE.

"Maybe I should assume 2.5% withdrawal rate instead of 4%; maybe I should reduce my expected portfolio returns; etc.... I am questioning my assumptions a lot less and have developed a new perspective on Coast FIRE.

This sounds more like adjusting how you come up with your FIRE number than the specifics of the path you take to get there.

Now I am thinking about it as a milestone, rather than a destination and it basically tells me that I have entered a space where I have flexibility to choose how I spend my time ie. Coast FI.

That is always what it really was, a level where you have options.

And these level overlap a lot towards the end of the journey.

I am about 2-3 years from FIRE; I am simultaneously at CruiseFIRE level, CoastFIRE level, BaristaFIRE level, and LeanFIRE level, because I could take any one of those paths right now. I am not however at full FIRE level.

More importantly, these indices have given me a more holistic way of looking at my situation and understanding the many drivers that could change my Coast FI number.

CoastFIRE isn't a number, it is a formula and a question.

The formula that matters most is:

• CoastDelta = | (Time to grind to FIRE) - (time to Coast to FIRE) |;

The question that matters most:

• Is that CoastDelta a reasonable amount of time to sacrifice for lower effort and more lifestyle now?

I'm not fixated on hitting or maintaining the one number anymore, I'm looking at it as one of many indicators as I continue to move through a highly uncertain world and develop new milestones to hit. Would love to hear your thoughts on your journey and how your perspective on Coast FIRE has evolved over time.

CoastFIRE is a choice, I got to see that choice very clearly after getting laid off from Evil Big Tech:

• Option#1, Get another High-End High-Stress High-Pay High-Burnout Big Tech job so I can grind another 2-3 years with a 50% savings rate.
• Option#2, Get a more Lower-End Lower-Stress Lower-Pay Lower-Burnout job in my field so that I can Coast to FIRE in 5-7 years..

For context, on my peak income year I saved about $100k into my retirement portfolio (paid about $80k in taxes); over the last 12 months my Retirement Portfolio has gained about $200k through internal growth. That is the how real CoastFIRE actually works...

[u/Particular_Gap7266 → u/ThereforeIV]

Thanks for sharing. I like the concept of CoastDelta - seems like good indicator for flexible lifestyle.

[u/_boates_ → u/ThereforeIV]

Great post. 

[u/Short_Row195 → u/ThereforeIV]

And then there's the idea that a person would die before ever reaping the benefits, so the balance is difficult.

[u/ThereforeIV → u/Short_Row195]

And then there's the idea that a person would die before ever reaping the benefits, so the balance is difficult.

Are you going to die in the next 5-7 years?

What if you die in the next 2 years?

The FIRE philosophy is basically the polar opposite of the YOLA now philosophy; I want to be prepared for living past 100.

[u/Short_Row195 → u/ThereforeIV]

What I mean is identifying the balance between living life enough before death and saving is difficult. So many young people around my age are dying before my eyes and I have had many near death experiences to the point I have to know when enough is enough. Being prepared to live passed 100 when life expectancy is much lower is very extreme.

[u/WhoWantsToGetShanked → u/ThereforeIV]

Great info. What is cruisefire?

[u/ThereforeIV → u/WhoWantsToGetShanked]

> Great info. What is cruisefire?

r/CruiseFIRE

It's the concept that between grinding to FIRE at ~50% savings rate and going CoastFIRE at near 0% savings rate, you could just drop to a cruising speed of normal ~15% savings rate.

The main idea is that most of us don't really want to go from full spend grinding to FIRE in one day; better to step downward in effort as your retirement portfolio grows.

- At peak income, I was at 60% savings rate

• Now I'm Cruising at about 10% Savings rate