Walletburst Coast Fire Calculator

Coast FIRE Formula:

\[ Coast\ FIRE = \frac{FIRE\ Number}{(1 + Return\ Rate)^{Years}} \]

Coast FIRE Amount:

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1. What is Coast FIRE?

Coast FIRE is a financial independence strategy where you save enough money early in life that, with compound growth, it will grow to your full FIRE number by traditional retirement age without needing to make additional contributions.

2. How Does the Calculator Work?

The calculator uses the Coast FIRE formula:

\[ Coast\ FIRE = \frac{FIRE\ Number}{(1 + Return\ Rate)^{Years}} \]

Where:

\( FIRE\ Number \) — The total amount needed for financial independence
\( Return\ Rate \) — Expected annual investment return rate (as decimal)
\( Years \) — Number of years until traditional retirement

Explanation: This formula calculates how much you need to have saved today to reach your FIRE number through compound growth alone.

3. Importance of Coast FIRE Calculation

Details: Calculating your Coast FIRE number helps you understand when you've reached the point where your investments will grow to support your retirement without additional contributions, allowing you to "coast" to financial independence.

4. Using the Calculator

Tips: Enter your target FIRE number in your preferred currency, your expected annual return rate as a decimal (e.g., 0.07 for 7%), and the number of years until you plan to retire. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a reasonable return rate assumption?
A: Most calculations use 5-7% after inflation for stock market investments, but this can vary based on your investment strategy.

Q2: How does Coast FIRE differ from regular FIRE?
A: With Coast FIRE, you only need to save enough to "coast" to retirement age, while traditional FIRE requires saving your full retirement number upfront.

Q3: What are the risks of Coast FIRE?
A: The main risk is that your actual returns may be lower than projected, requiring you to return to saving or work longer than planned.

Q4: Should I adjust for inflation?
A: Yes, it's best to use real returns (after inflation) in your calculations to maintain purchasing power.

Q5: Can I use Coast FIRE with different investment strategies?
A: Yes, but you'll need to adjust your expected return rate based on your specific investment approach and risk tolerance.