Anybody here trying Coast FIRE?

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CyclingDuo
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Re: Anybody here trying Coast FIRE?

Post by CyclingDuo »

BogleFan510 wrote: Sat Oct 17, 2020 4:20 pm I guess we sort did this.

But does retiring at 53 qualify? Scaled back work responsibilities significantly over the last 13 years of career, switched to easier, less stress industry at roughly 1/2 pay, turning down promotions, but still earned pretty good. Currently pretty FAT FIRE enabled, though and can't seem to change our spending/saving habits (no kids).
Join a bunch of expensive wine clubs. :beer
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BogleFan510
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Re: Anybody here trying Coast FIRE?

Post by BogleFan510 »

CyclingDuo wrote: Sat Oct 17, 2020 4:31 pm
BogleFan510 wrote: Sat Oct 17, 2020 4:20 pm I guess we sort did this.

But does retiring at 53 qualify? Scaled back work responsibilities significantly over the last 13 years of career, switched to easier, less stress industry at roughly 1/2 pay, turning down promotions, but still earned pretty good. Currently pretty FAT FIRE enabled, though and can't seem to change our spending/saving habits (no kids).
Join a bunch of expensive wine clubs. :beer
Or buy a tandum bike?
JBTX
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Re: Anybody here trying Coast FIRE?

Post by JBTX »

luminous wrote: Sat Oct 17, 2020 3:49 pm
ThankYouJack wrote: Sat Oct 17, 2020 11:07 am I'm surprised the idea is taking a lot of flak. Obviously a lot of people get tired of the FIRE terms (I do too).

I think it's a great idea to work full-time for a while, save up a bunch (maybe 1/2 your income to get to a real lean FI) and then semi-retire. Because of medical expenses and market unknowns it's very tough to retire very young, say by 40. But it's much easier and safer to semi-retire at that age. Granted you'll have to work a few more years, but the total number of hours worked will likely be less by semi-retiring assuming your pay is proportional.

To me, it seems like there's more conservative traditionalists on here who work 40+ hours, until you reach a massive FI number, obviously fine too :) But I think there a lot of middle ground if you can find the right part-time job.
Finding a part time job with pay which is proportional to a full time corporate job is basically impossible in many fields. In my line of work (tech) the big bonuses and stock packages are only for those working full time.

I may someday end up with a part time job/consulting after corporate life, but it will be at a tiny fraction of my current compensation.

The problem is it is highly unpredictable. I'm in finance and accounting, and over several decades have worked about 10 years as either 1099 or contract-consultant through an agency. The 1099s just fell in my lap through prior employers or contacts. But you could go years and never see an opportunity like that again. You can go through an agency, but those assignments for the comparatively higher paid assignments are limited, and often are full time, and some of them are just bad assignments.

I'm personally in a quasi "coast fire" I guess. I'd like some part time work, but I have no idea if and when I'll find something that is stimulating and worth doing.

Given all that, it isn't illogical if you like your full time job well enough, to ride it out a little longer. Of course if you are miserable then you definitely should make a change. Life is short.
Stubbie
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Re: Anybody here trying Coast FIRE?

Post by Stubbie »

JoMoney wrote: Fri Oct 16, 2020 9:44 pm I'm doing the type of 'FIRE' where I just live off the income from the side hustle I got with all my free time... It's not bad at all, only about 40 hours a week, covers medical insurance and social security, and is a nice break from all the blogging involved with other types of FIRE.
I don't mind it at all, but I do get some funny looks when I tell my co-workers I'm retired :P
That sounds a lot like my former side hustle. It sure beat relying on steady blogging income. Now I am purely no hustle. :beer
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Re: Anybody here trying Coast FIRE?

Post by qwertyjazz »

I guess it makes sense. But there are two kinds of Coast Fire - make less money (part time or easier job) and spend more. Mathematically it makes sense that both get to the same place.
The problem with make less money is that not all jobs scale per hour up. You can make more money going full time than just multiples of hours.
The problem with spending more is that you get used to it and the ‘goal post’ keeps moving. So while you may have been Coast Fire before - you no longer are.
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HomerJ
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Re: Anybody here trying Coast FIRE?

Post by HomerJ »

fortunefavored wrote: Fri Oct 16, 2020 7:40 pm It never made sense to me either. From my real world experience, from 1998 to 2013.. I had zero real returns after inflation.
This is incorrect. Maybe the money you invested in 1998 had zero real return by 2013 (I still think that doesn't sound right), but you also invested money in 2002 and 2003 and 2004 and 2008 and 2009 and 2010, and all that money had decent returns by 2013.
Counting on 6% every year (or whatever number you care to use) that will let you "coast" into FIRE seems like a pretty big gamble vs. guaranteed wage savings.
But I agree with that.
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GreenLawn
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Re: Anybody here trying Coast FIRE?

Post by GreenLawn »

lostdog wrote: Sat Oct 17, 2020 10:38 am It should be called "Financial Independence Semi-Retire".

Most of the FIRE community semi-retire into something they enjoy. The "RE" is misleading and more of a marketing gimmick to sell their material.
Yes, and when you call them on it they call you the Internet Retirement Police:
https://www.mrmoneymustache.com/2013/02 ... nt-police/

They take pains in their attempt to define retirement to match their lifestyle, which clearly isn't retirement. I'm a big FIRE fan, but you can't always take the bloggers at face value.

I do have to say, some of them really do goof off all day and richly deserve the FIRE title :D
https://rootofgood.com/
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Re: Anybody here trying Coast FIRE?

Post by fortunefavored »

HomerJ wrote: Sat Oct 17, 2020 5:11 pm
fortunefavored wrote: Fri Oct 16, 2020 7:40 pm It never made sense to me either. From my real world experience, from 1998 to 2013.. I had zero real returns after inflation.
This is incorrect. Maybe the money you invested in 1998 had zero real return by 2013 (I still think that doesn't sound right), but you also invested money in 2002 and 2003 and 2004 and 2008 and 2009 and 2010, and all that money had decent returns by 2013.
Argue with Quicken's IRR function, I guess. :) Cross checking with Quicken's cost basis report, still seemed about right in mid-2013 during one of the dips. It was a moment of clarity so I remember it vividly.

Unfortunate timing on some big lump sums at the worst time(s) + overweighting asset classes that performed poorly. Win some, lose some. It definitely illustrates that raw portfolio visualizer results won't necessarily reflect real life.

Obviously I DID pile away a ton of money that period, and then it pretty much exploded from there. I hit my number last year, just riding through COVID for now because what else am I gonna do.
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CyclingDuo
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Re: Anybody here trying Coast FIRE?

Post by CyclingDuo »

BogleFan510 wrote: Sat Oct 17, 2020 4:32 pm
CyclingDuo wrote: Sat Oct 17, 2020 4:31 pm
BogleFan510 wrote: Sat Oct 17, 2020 4:20 pm I guess we sort did this.

But does retiring at 53 qualify? Scaled back work responsibilities significantly over the last 13 years of career, switched to easier, less stress industry at roughly 1/2 pay, turning down promotions, but still earned pretty good. Currently pretty FAT FIRE enabled, though and can't seem to change our spending/saving habits (no kids).
Join a bunch of expensive wine clubs. :beer
Or buy a tandum bike?
We've got a couple we'd be willing to part with....

:sharebeer
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GreenLawn
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Re: Anybody here trying Coast FIRE?

Post by GreenLawn »

stocknoob4111 wrote: Fri Oct 16, 2020 9:06 pm
philef wrote: Fri Oct 16, 2020 8:13 pm Do you have a link to the article you read?
https://www.businessinsider.com/persona ... nt-2020-10
How is this considered FIRE? RE stands for Retiring Early and I haven't seen any early retirement dates set by you or the author? Many folks only set aside 10 or 15 percent for retirement anyway, how is saving that much life changing? Wouldn't a half time job require at least a 40% reduction in expenses? And even at that, you're certainly not retired, just cutting back your hours.
Normchad
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Re: Anybody here trying Coast FIRE?

Post by Normchad »

GreenLawn wrote: Sat Oct 17, 2020 6:04 pm
stocknoob4111 wrote: Fri Oct 16, 2020 9:06 pm
philef wrote: Fri Oct 16, 2020 8:13 pm Do you have a link to the article you read?
https://www.businessinsider.com/persona ... nt-2020-10
How is this considered FIRE? RE stands for Retiring Early and I haven't seen any early retirement dates set by you or the author? Many folks only set aside 10 or 15 percent for retirement anyway, how is saving that much life changing? Wouldn't a half time job require at least a 40% reduction in expenses? And even at that, you're certainly not retired, just cutting back your hours.
FIRE is the term that people like to use. But in a lot of cases, what people say and do, isn’t strictly in line with those words.

For coastFire, the people doing it are neither “Financially Independent”, nor have they “retired early”. This doesn’t negate the validity of what they’re doing. It just seems a misappropriation of the term “FIRE” to me. But then again, a lot of people in the wider FIRE community also have looser definitions.... I.e. some of them are financially independent, but are still working.

But it’s all good. These people are “coasting” to a point in their life when they will be truly FIRE. Really, they are making a major life decision, and are more switching gears. And the fact that they’ve already accumulated enough, so that they have the option to do that, is fantastic I think.
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JoMoney
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Re: Anybody here trying Coast FIRE?

Post by JoMoney »

FIRE sounds more and more like a euphemism for under-employed.
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Re: Anybody here trying Coast FIRE?

Post by peterwantstosave »

Friends,

I have no idea what coast fire is. But maybe I'm missing a really important thing. Can a kind person define it for me?

Thanks, Peter
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Re: Anybody here trying Coast FIRE?

Post by Willmunny »

peterwantstosave wrote: Sun Oct 18, 2020 8:14 am Friends,

I have no idea what coast fire is. But maybe I'm missing a really important thing. Can a kind person define it for me?

Thanks, Peter
It appears to me to be someone who, based on current portfolio balance and historical rates of return at his or her asset allocation, has determined that he or she can retire at a certain date in the future without saving another time from salary for retirement. So he or she continues working, but does one or both of (1) increase spending due to no perceived need to save additional earned income for retirement; or (2) take a lower paying, less stressful, and/or part time job.
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Re: Anybody here trying Coast FIRE?

Post by peterwantstosave »

Oh, okay. The marketing is both catchy and confusing, if you catch my drift

Stay well and thank you,

Peter
403b: 54% VTSAX, 36% BTMKX 10% QCBMRX | GSRA: 100% Money Market (100% QCBMRX on Dec 11, 2020) | Roth IRA: 100% FIPFX | Taxable: 100% FSKAX
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CyclingDuo
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Re: Anybody here trying Coast FIRE?

Post by CyclingDuo »

peterwantstosave wrote: Sun Oct 18, 2020 8:14 am Friends,

I have no idea what coast fire is. But maybe I'm missing a really important thing. Can a kind person define it for me?

Thanks, Peter
Load up your savings and investments early in your working career - and let 'em ride for 35-45 years which gives you the option to stop contributing to your retirement investments, or cutting way back on your contributions.

https://fourpillarfreedom.com/what-is-coast-fire/
"Save like a pessimist, invest like an optimist." - Morgan Housel
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Re: Anybody here trying Coast FIRE?

Post by peterwantstosave »

Thanks, Cycling Duo. You're always good at answering my questions.

Fondly, Peter
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flyingaway
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Re: Anybody here trying Coast FIRE?

Post by flyingaway »

Willmunny wrote: Sun Oct 18, 2020 8:25 am
peterwantstosave wrote: Sun Oct 18, 2020 8:14 am Friends,

I have no idea what coast fire is. But maybe I'm missing a really important thing. Can a kind person define it for me?

Thanks, Peter
It appears to me to be someone who, based on current portfolio balance and historical rates of return at his or her asset allocation, has determined that he or she can retire at a certain date in the future without saving another time from salary for retirement. So he or she continues working, but does one or both of (1) increase spending due to no perceived need to save additional earned income for retirement; or (2) take a lower paying, less stressful, and/or part time job.
Also check out the baristaFIRE.
macheta
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Re: Anybody here trying Coast FIRE?

Post by macheta »

My retirement plan includes a coast strategy. My main plan is to invest fully until retirement which is planned at 55. I can coast and retire at 60 if something unexpectedly happens.
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Will do good
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Re: Anybody here trying Coast FIRE?

Post by Will do good »

9-5 Suited wrote: Fri Oct 16, 2020 8:30 pm The acronym soup of the FIRE movement is getting a little out there. Financial independence means you don’t have to work for money if you don’t want to. I would very much consider myself a part of that movement, broadly speaking.

But Coast FIRE is just changing jobs and taking longer to get to FI. Nothing wrong with it but it’s not some magical thing.

Lean FIRE is reducing your lifestyle to retire earlier. Fat FIRE is saving more for luxuries. Giving all these things names only seems to serve to make them seem cooler than they are.

Wow, I’m 34 and that’s my first Boomer rant :D
Welcome to the club.

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CyclingDuo
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Re: Anybody here trying Coast FIRE?

Post by CyclingDuo »

peterwantstosave wrote: Sun Oct 18, 2020 8:29 am Thanks, Cycling Duo. You're always good at answering my questions.

Fondly, Peter
The only experience we have with this method was how we saved for our children's college educations. We front loaded them heavily with just about everything we could throw at them (which we were able to do as we had no debt and didn't have children until we were in our late 20's, early 30's), and then let those accounts grow for 18-24 years. Worked out pretty well, so I can imagine extrapolating that for a 35-45 year time frame under the context of the terminology Coast FIRE.

CyclingDuo
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am
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Re: Anybody here trying Coast FIRE?

Post by am »

Seems to me like coast fire is risky, things could go wrong both in the returns category and increased spending for reasons you don’t know. Better to get there first and then make changes if you so choose. On the other hand, you don’t know what your life expectancy is and working at a job you don’t like full time is also undesirable. Definitely a personal decision. Just like the safe withdrawal %, no way of getting to certainty on the right thing to do.
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Re: Anybody here trying Coast FIRE?

Post by SpareChange »

This is very close to what I'm doing. Busted my butt for about 5 years FT, invested 60-70% of gross pay, then dropped to halftime last year. I'm 45 now, plan on being in position to retire fully no later than 54. Don't hate my job, I just have always strongly disliked working FT, no matter the industry. My career makes this very easy to do, thankfully. The term "Coast FIRE" has been around for a good bit at this point, just not explored often on Bogleheads.
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HomerJ
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Re: Anybody here trying Coast FIRE?

Post by HomerJ »

I guess we kind of did this when my wife retired from a job she hated about 7-8 years ago.

We were saving tons when we both worked, and doing the numbers, we recognized that we had saved enough to coast into retirement for me as well sometime in my mid 50s even if she quit her job right away.

We had paid off the house, so we could easily live on my salary alone, and still save a decent amount each year, but yes, we decided we could mostly "coast" on investment growth to hit our number (and some savings), instead of going all out to get us both retired as fast as possible.

Worked for us, but the last 7-8 years have been pretty good for growth.
Last edited by HomerJ on Sun Oct 18, 2020 1:25 pm, edited 1 time in total.
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HomerJ
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Re: Anybody here trying Coast FIRE?

Post by HomerJ »

fortunefavored wrote: Sat Oct 17, 2020 5:28 pm
HomerJ wrote: Sat Oct 17, 2020 5:11 pm
fortunefavored wrote: Fri Oct 16, 2020 7:40 pm It never made sense to me either. From my real world experience, from 1998 to 2013.. I had zero real returns after inflation.
This is incorrect. Maybe the money you invested in 1998 had zero real return by 2013 (I still think that doesn't sound right), but you also invested money in 2002 and 2003 and 2004 and 2008 and 2009 and 2010, and all that money had decent returns by 2013.
Argue with Quicken's IRR function, I guess. :) Cross checking with Quicken's cost basis report, still seemed about right in mid-2013 during one of the dips. It was a moment of clarity so I remember it vividly.

Unfortunate timing on some big lump sums at the worst time(s) + overweighting asset classes that performed poorly. Win some, lose some. It definitely illustrates that raw portfolio visualizer results won't necessarily reflect real life.

Obviously I DID pile away a ton of money that period, and then it pretty much exploded from there. I hit my number last year, just riding through COVID for now because what else am I gonna do.
Note that this is fairly normal with stock market investing.

People who saved from 1966-1982 saw very little growth, but by saving a lot, they still had a decent chunk of money by 1982.. when the stock market exploded, and all the money they saved over those 16 years, grew 8x-10x by 2000.

Same with 2000-2011. My wife and I saved a ton each year, and it grew some, but not much, then exploded the last decade, growing 3x-4x (maybe 8x-10x is still in our future?? Probably not - but who knows?)
A Goldman Sachs associate provided a variety of detailed explanations, but then offered a caveat, “If I’m being dead-### honest, though, nobody knows what’s really going on.”
dziuniek
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Re: Anybody here trying Coast FIRE?

Post by dziuniek »

Lifestyle inflation / lifestyle creep is another way to describe coast fire.

Lifke a previous poster said, your number might go up because you get used to spending 'excess' money.
jsapiandante
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Re: Anybody here trying Coast FIRE?

Post by jsapiandante »

We hope to go this route but we will wait until we are FI which is 2-3 years from now. Plan is for me to reduce my office hours (hopefully it doesn’t affect income much) and for my wife to take a year long sabbatical and come back part time if allowed (if not quit entirely). Hopefully I still make enough to still live on my income for cushion. Our main goal for FI is to spend as much time as possible with our son before he gets too independent.
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Re: Anybody here trying Coast FIRE?

Post by firebirdparts »

macheta wrote: Sun Oct 18, 2020 9:16 am My retirement plan includes a coast strategy. My main plan is to invest fully until retirement which is planned at 55. I can coast and retire at 60 if something unexpectedly happens.
That’s the better kind of coasting. The kind with full pay and benefits.
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Re: Anybody here trying Coast FIRE?

Post by Maverick3320 »

Kookaburra wrote: Fri Oct 16, 2020 9:18 pm
9-5 Suited wrote: Fri Oct 16, 2020 8:30 pm The acronym soup of the FIRE movement is getting a little out there. Financial independence means you don’t have to work for money if you don’t want to. I would very much consider myself a part of that movement, broadly speaking.

But Coast FIRE is just changing jobs and taking longer to get to FI. Nothing wrong with it but it’s not some magical thing.

Lean FIRE is reducing your lifestyle to retire earlier. Fat FIRE is saving more for luxuries. Giving all these things names only seems to serve to make them seem cooler than they are.

Wow, I’m 34 and that’s my first Boomer rant :D
Don’t forget wildFIRE, which is to retire early and take your savings to Vegas to fritter on drinks, dancers, and roulette wheels.
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sambb
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Re: Anybody here trying Coast FIRE?

Post by sambb »

Coast fire looks interesting, and i think it has its advantages. Many roads to retirement and this is one of them. I think it is definitely worth thinking about as an option.
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Re: Anybody here trying Coast FIRE?

Post by englishgirl »

I am coast FIRE. I downshifted to a much lower stress job. I did it part time from age 44 to build up a client base, then went full time by quitting the well paid but stressful job at 49. My plan was to work kind of part time just covering my expenses but letting my retirement savings grow until retiring at 60-62. Of course, just working part time turned out to be difficult and I ended back at full time again but it turned out that I enjoyed working when it wasn't a soul-sucking depressive time waster. I have kept saving a little bit into my retirement accounts (when the original plan was to truly coast and not save anything at all) and it turns out I could now retire completely at 52, which is 10 years ahead of schedule. Well, if I retired now I'd be living on less than I had planned for in plan A but given that the amount I would be living on is equal to or higher than what I've been living on for the past few years...meh. I could stop if I wanted to is my point. But, and here's the thing again, I enjoy work now. It gives me purpose and gets me out of the house. Plus, my spouse isn't ready to retire and I don't want to go off and travel on my own. So we'll keep plodding along.
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Re: Anybody here trying Coast FIRE?

Post by hfj »

Maverick3320 wrote: Sun Oct 18, 2020 5:16 pm
Kookaburra wrote: Fri Oct 16, 2020 9:18 pm
9-5 Suited wrote: Fri Oct 16, 2020 8:30 pm The acronym soup of the FIRE movement is getting a little out there. Financial independence means you don’t have to work for money if you don’t want to. I would very much consider myself a part of that movement, broadly speaking.

But Coast FIRE is just changing jobs and taking longer to get to FI. Nothing wrong with it but it’s not some magical thing.

Lean FIRE is reducing your lifestyle to retire earlier. Fat FIRE is saving more for luxuries. Giving all these things names only seems to serve to make them seem cooler than they are.

Wow, I’m 34 and that’s my first Boomer rant :D
Don’t forget wildFIRE, which is to retire early and take your savings to Vegas to fritter on drinks, dancers, and roulette wheels.
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Re: Anybody here trying Coast FIRE?

Post by radiowave »

I always seem to get a headache on these FIRE threads. For definitional purposes, is the RE part of FIRE based on an assumption of a normal retirement at 65, e.g. anything less than 65 is retiring early? if so, then is retiring at age 64 short FIRE? If you retire "on time" at 65 and are financially independent is that FIROT (financially independent, retire on time)?
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JBTX
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Re: Anybody here trying Coast FIRE?

Post by JBTX »

I am confused that FIRE supposed really doesn't mean RE, it means do whatever you want, take a lower paying job etc. But now it seems like that is what coastFIRE is.
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Re: Anybody here trying Coast FIRE?

Post by bhsince87 »

For many years, I had a plan to do something similar. The company I worked for offered health insurance for folks who worked 24 hours a week. They also allowed buy health insurance buy-in for folks 60 or over who had 20 years of service.

So my plan was to wind down to part time at 55, and retire fully at 60.

But then they stopped the retiree health insurance deal.

And then they stopped allowing part time work for previous full time employees.

So I figured I'd just retire at 55 and consult for a few years, and go with ACA insurance.

But they offered me a package at age 53.5, which covered about 1.3 years pay, but had a one year non-compete.

I jumped on that.

Almost exactly when my severance ran out, covid hit. I haven't been able to find a consulting or part time gig since then.

So I just changed strategies a bit. Instead of taking a 3% withdrawal rate as I had planned, I'm living off dividends and interest, which is a bit under 2% now. Anything above that gets reinvested until a later date. I think that might qualify as a form of coasting.

So far, I'm happy. I've developed an aversion to work, so to speak. And the lower withdrawal rate has been fine so far.
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Re: Anybody here trying Coast FIRE?

Post by mmmodem »

I had to look up the definition of Coast FIRE. It appears to be a variation on Barista FIRE. It sounds like a good plan if you really do need to wind down towards the end. I can see myself doing it if I had a job I disliked, a medical condition that indicated a shorter lifespan or something of that nature. The only issue with Coast and Barista FIRE is that you need to make some kind of income as your approach RE. And like I said, if there was some compelling reason to take risk, I would. However, I currently love my job so will continue pedal to the metal.
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Re: Anybody here trying Coast FIRE?

Post by CyclingDuo »

mmmodem wrote: Mon Oct 19, 2020 8:11 am I had to look up the definition of Coast FIRE. It appears to be a variation on Barista FIRE. It sounds like a good plan if you really do need to wind down towards the end. I can see myself doing it if I had a job I disliked, a medical condition that indicated a shorter lifespan or something of that nature. The only issue with Coast and Barista FIRE is that you need to make some kind of income as your approach RE. And like I said, if there was some compelling reason to take risk, I would. However, I currently love my job so will continue pedal to the metal.
Yup. Nothing wrong with loving your job and keeping your foot on the pedal.

Plenty of discussion on comparing Coast and Barista along with all the various other individual t-shirts with one's particular "brand" of FIRE. It is fascinating and in retrospect is nothing new from prior decades. It's just that we used the word "retire" to cover it all. These days, it appears some need a hat or t-shirt to announce their flavor. :twisted:

I've written about it before, but some of my early encounters with a couple of forms of it involved my childhood. One set of my grandparents had a farm where they had orchards (peach, cherry, apple), raised cattle, had a huge garden and grandma canned everything. They were homesteading, but grandpa also worked part-time by doing most everyone's taxes in town and his pay ranged from bartering, to cash, to doing it as a favor for some. Income streams apparently were pension, SS, income from the produce and livestock sold at market, and his tax season part-time work. Plenty of physical labor involved on a farm, so my grandparents - even though they were "retired" - were always doing some form of work that involved money or barter well into their late 80's. My grandfather had "retired early" from the railroad (was a station agent), and the farm/homesteading became the "job" after his decades with the railroad.

Another example was on a trip I took in middle school with my father which involved kayaking. Two of the members of our group were in their early 40's and were tax accountants. They said they were "retired" and worked the tax season for a few months every year, but considered themselves retired and were living off of their savings and investments the rest of the year.

There were other examples as well (including our own sets of parents), but the above come to mind and I'm sure we could all think of people we have encountered or known in prior decades that would fit under a nomer of one of the flavors of FIRE that are commonly used today even though back then we just lumped it all under the umbrella of "retired".

The most important thing is for all of us to have enough money and income streams to cover our expenses if and when we reach a point that some form of retirement comes into play. Plenty of triggers and decisions to be made at that time for each individual household. Triggers such as: Job loss. Tired of working. Have enough money saved. Switching to part-time/consulting. Health issues. Reached a certain age that was pre-determined by you or your corporation to "retire". Windfall. And on and on.

This list of 4 does not include Coast FIRE or MoFire (morbidly obese FIRE), but starts to differentiate or delineate the types...

Image

This is the classic graphic from CampFIreFinance that gets passed around the most all over the internet (although it does not include other streams of income such as pension, SS, rental income, royalty income and what not)...

Image

Lots of searching going on to define exactly what Coast FI or FIRE is...

https://www.firethefamily.com/home/coas ... ed-to-know
https://www.financialsamurai.com/what-i ... ire-early/
https://marriagekidsandmoney.com/podcas ... -planning/

You can even calculate your Coast FI or FIRE:

Image
https://thefioneers.com/coast-financial ... alculator/

Certainly, those who graduate from college debt free, or begin a career with enough income to more than cover all of their living expenses and can set aside a healthy chunk of their income during their 20's and early 30's at least have the recipe for Coast FI/FIRE if that is a goal of theirs or not.

It all revolves around do you have, or will you have enough money saved by itself, or will you have enough saved that when combined with other income streams to cover your expenses in "retirement", you'll be okay? If not, will you be able to adapt and adjust?

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simplesimon
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Re: Anybody here trying Coast FIRE?

Post by simplesimon »

What's it called when you have enough net worth to retire almost anywhere in the country except where you currently live?
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Re: Anybody here trying Coast FIRE?

Post by HomerJ »

simplesimon wrote: Mon Oct 19, 2020 10:35 am What's it called when you have enough net worth to retire almost anywhere in the country except where you currently live?
Peace of mind.

We recently sold our lake condo, but starting about 4-5 years ago, we were in a position that we could probably have retired there even if I lost my job and never worked again.

That wasn't our goal (Wife would never want to spend winters there), but it did give me peace of mind knowing we were in a position to be warm, fed, and dry no matter what happened... And with a beautiful lake view with a boat and a jetski... that's a pretty good "worst-case scenario".

We're going for a stretch goal now, but once you get to the point where your worst-case is still pretty good, that definitely helps one sleep at night.
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Re: Anybody here trying Coast FIRE?

Post by CyclingDuo »

simplesimon wrote: Mon Oct 19, 2020 10:35 am What's it called when you have enough net worth to retire almost anywhere in the country except where you currently live?
OverThere FIRE ---------->
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SmileyFace
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Re: Anybody here trying Coast FIRE?

Post by SmileyFace »

simplesimon wrote: Mon Oct 19, 2020 10:35 am What's it called when you have enough net worth to retire almost anywhere in the country except where you currently live?
Maybe REFIRE (Relocation-Enabled FIRE).
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Re: Anybody here trying Coast FIRE?

Post by vitaflo »

I've thought about doing this, but I call it "downshifting" because there's nothing FIRE about it (you're not financially independent nor retiring early).

But then I thought if I only have 5 years until actual FIRE, vs 15 years of working part time/reduced salary before my portfolio climbs on its own, I may as well just put in the 5 years and get it over with. The whole Coast FIRE/Downshifting sounds good in theory but you still have to work to make ends meet. Many people who want to do this are simply sick of work. Dragging it out doesn't seem like a great idea. Just stick it out and get it over with.
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Re: Anybody here trying Coast FIRE?

Post by Portfolio7 »

JBTX wrote: Sat Oct 17, 2020 1:55 pm
Chicken Little wrote: Sat Oct 17, 2020 12:45 pm
Carguy85 wrote: Sat Oct 17, 2020 11:13 am How about not trying to fall into a specific category and doing what makes you happiest in the long run? Paying cash and minimizing fixed costs. Minimize dumb/wasteful spending and maximize investing. 100% changes ones outlook even at the same job. I can’t imagine retiring in my mid 30s but also can’t imagine working full time past 40 much less till 65.
From mid 30s to 40 is a five year swing. What happens there?

My problem isn’t with the people who will be successful, it’s with all of the people who will fail. If you earned enough in what, 18 years or so, to stop working full-time, that’s great. I doubt that’s a plan that many can follow.

It’s hardly unique to not want to work full time after 40, but I can tell you what people really don’t want to do. They definitely don’t want to go back to work full time at 50 or 60 for a lesser wage because they’re running low on money from retiring at 40.

The attention this has gotten is disproportional to the number of people that make enough to actually pull it off successfully.

Lot of people will get burned with FIRE.
Agree. Based upon some of the numbers thrown around in here, I could have "fired" 20+ years ago. But I would have locked into a specific lifestyle. Life happens:

- you get married / or divorced
-perhaps spouse is not into the prospect of loving near poverty level for the next 40-50 years.
- perhaps you or spouse develop disability or illness
- health insurance affordability, law, etc is definitely not set in stone.
- you have kids that need additional help, maybe special needs, maybe medical help, maybe private school. There have been years we have spent $25-$30k out of pocket on medical / educational expenses surrounding special needs of kids.

We now how much more than decades ago when theoretically I could have retired and lived on a shoe string. However we still don't know if we have as much as we would like due to the desire to set aside trust fund for special needs child.

Obviously you can't plan for every contingency. But planning on everything going as planned for the next 50-60 years seems foolhardy also.
+1. Similar situation here. 25 years ago I projected we could retire at 50 if we didn't have kids, 55 if we did. I really was not too far off given what I knew at the time, but I both underestimated likely health care costs post-retirement, and especially having a special needs child changed the equation. Now, having had kids, we'll likely need to keep our professional jobs until age 57 or 58, and are probably not going to hit our financial goals until, well, current rough projection is age 61, but that's +/- a few years depending on both market returns and DW's business growth. We need our savings to double one more time, which for us has been averaging about every 7 years, with contributions. I'm emotionally ready to retire now.

The description of approaching retirement as biking up and cresting a big hill is very appropo. When you get near the crest you want to rest (at least I do), but realize you need to push through with moderate effort yet for quite a while until you actually hit and move slightly past the peak. That's when you can actually "coast". Try to coast before then, tantalizing as it is, and you're likely to find yourself stalled.
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Re: Anybody here trying Coast FIRE?

Post by Elsebet »

case_of_ennui wrote: Sat Oct 17, 2020 12:12 pm Changing jobs to something that doesn't pay as well isn't always a choice, sometimes people get fired or laid off. I'm going for CoastFIRE in case I get laid off of my fairly niche job, can never find anything of similar compensation, and am forced to take a lower paying job (ie. retail). I hope that never happens, but it's still something I can plan for.
I strive towards FI for the exact same reason, I may be forced to coast. :)
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Re: Anybody here trying Coast FIRE?

Post by Exchme »

JoMoney wrote: Fri Oct 16, 2020 9:44 pm I'm doing the type of 'FIRE' where I just live off the income from the side hustle I got with all my free time... It's not bad at all, only about 40 hours a week, covers medical insurance and social security, and is a nice break from all the blogging involved with other types of FIRE.
I don't mind it at all, but I do get some funny looks when I tell my co-workers I'm retired :P
This is a great point. Many of the FIRE blogs, the plan revolves around a "side hustle". But shockingly people will find that side hustles have no chance of producing significant income unless they pour everything into it. That may be more rewarding than working for others, but it's not retirement.
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Re: Anybody here trying Coast FIRE?

Post by JD2775 »

simplesimon wrote: Mon Oct 19, 2020 10:35 am What's it called when you have enough net worth to retire almost anywhere in the country except where you currently live?
Seriously, tell me about it. I would retire much sooner than I'll end up needing to if I was able to relocate to a cheaper city/state. Problem is my SO has all her family here and doesn't want to leave. In all fairness my family is here as well. Ughh.
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Re: Anybody here trying Coast FIRE?

Post by DoTheMath »

This is timely for us. While on a long bike ride on a recent weekend I ran some numbers in my head. I was so startled by the outcome that I had to redo them properly once I got home. We're now to the point where we could, say, cut our savings rate in half and this would only add 2-3 years to our retirement date. And this is true under a pretty wide range of reasonable assumptions. The snowball has gotten large enough that our contributions just don't make that big of a difference to the outcome in most scenarios.

Realizing this opened up new possibilities like buying a vacation home, going to 3/4 time at work, etc. These are things we've talked about a little in the past, but the assumption then was that it would be a big change in trajectory to do something along those lines. But when you realize you could be x% happier working for y+3 years vs. grinding it out as-is for y years, that changes the conversation.

I don't know what, if anything, we will do differently. But this realization has at least spurred us to have some good conversations about what we would like the next decade+ to look like.
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Re: Anybody here trying Coast FIRE?

Post by Hatch Batten »

I started coasting when I was about 40. Now mid-50s. Average income dropped about 30% and I switched from mostly full-time positions as an employee to mostly part-time via contract. There wasn't a term for it then that I knew of, so I described myself as semi-retired.

I prefer the independence of part-time contract work. I also like the structure of having a job, so if my plan to fully retire at 60 (currently mid-50s) works out that will be early enough for me. I might seek out some very part-time work after that, like covering a few shifts at a library or doing some tutoring.

Materially my needs and wants are easily met, so no regrets there. I had the good fortune of some advantages in life and didn't feel the need to compete with others on the job ladder. One thing I do regret is not being more successful in terms of notability in my field.

I continued saving a bit even in coast FIRE, mostly towards cash to buffer times where the contract work was scarce. When the cash buffer overflows I kick that to my retirement account.
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Re: Anybody here trying Coast FIRE?

Post by Normchad »

Hatch Batten wrote: Mon Oct 19, 2020 6:51 pm I started coasting when I was about 40. Now mid-50s. Average income dropped about 30% and I switched from mostly full-time positions as an employee to mostly part-time via contract. There wasn't a term for it then that I knew of, so I described myself as semi-retired.

I prefer the independence of part-time contract work. I also like the structure of having a job, so if my plan to fully retire at 60 (currently mid-50s) works out that will be early enough for me. I might seek out some very part-time work after that, like covering a few shifts at a library or doing some tutoring.

Materially my needs and wants are easily met, so no regrets there. I had the good fortune of some advantages in life and didn't feel the need to compete with others on the job ladder. One thing I do regret is not being more successful in terms of notability in my field.

I continued saving a bit even in coast FIRE, mostly towards cash to buffer times where the contract work was scarce. When the cash buffer overflows I kick that to my retirement account.
Thanks for sharing your experience. This definitely fits the term CoastFIRE in my book.

Sounds like it worked out great for you, the last 15 years have been enjoyable for you, and you’re all set to fully retire when you want to. Wonderful!
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Re: Anybody here trying Coast FIRE?

Post by Carguy85 »

My 7 week furlough earlier this year was an eye opener for me and certainly a blessing in disguise. I’ve been blessed to be in a good position of no debt and a larger than necessary emergency fund in addition to investments. I started to really enjoy my time off and realized I didn’t need to spend tons of money to be happy.... actually very little. My wife (been together 16 years) said she couldn’t remember a time I had been happier. It soon got to feel like every day was Saturday and I could enjoy the simplest of what each day had to offer...I started to forget what it was like to get home after work and be too drained to do anything. This really got me thinking how can I get to this sustained lifestyle ASAP! Not interested in leanfire but no reason to bust my butt for years more and be too old and broke down to enjoy anything. I already realize how its already harder to enjoy things than 15-20 years ago. Work some days is very enjoyable and some days as one poster earlier put it feels like a “soul sucking waste of time”.
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