Coast FIRE Calculator

FAQ

Q: What does FIRE mean?

FIRE stands for “Financial Independence, Retire Early.” In simple terms, it’s about saving and investing enough money so you can support yourself without needing a full-time job. Once you’ve reached financial independence, you can choose to retire early, work part-time, or do whatever else feels right to you—because you’re no longer stuck working just to pay the bills.

Q: What is Coast FIRE?

Coast FIRE is a type of FIRE approach where your goal is to save and invest enough that your money can grow on its own and eventually hit your retirement goal, even if you stop contributing. After reaching Coast FIRE, you can relax a bit. You could take a lower-stress job, switch careers, or cut back on hours, knowing that your future financial needs are on track without adding more money to the pot.

Q: What is a “safe withdrawal rate”?

A “safe withdrawal rate” is the percentage of your savings you can spend each year without running out of money too soon. Many people use 4% as a guideline. That means if you have $1 million saved, you’d withdraw about $40,000 a year. Of course, this is just a rule of thumb. Your ideal rate might be different, depending on your unique situation, investment choices, and how long you want your money to last.

Q: What is the “25X rule”?

The “25X rule” is a simple application of the 4% withdrawal rate, a shortcut for figuring out roughly how much money you need saved for retirement. Just take what you plan to spend each year and multiply it by 25. That gives you a ballpark number for how big your investment nest egg should be before you can live off it comfortably.