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Coast FIRE: When Can You Stop Contributing and Let Your Portfolio Grow on Its Own?
Key takeaways
- Coast FIRE is the state where your investment portfolio will grow to the target retirement sum on its own, without additional contributions.
- The earlier you reach this point, the more flexibility you have — you no longer need to maximize savings, just cover your expenses.
- The calculation depends on your target sum, expected return, and number of years until retirement.
- After reaching Coast FIRE, many people choose less stressful work or shorter hours.
- It is a milestone on the path to full FIRE, not the end of the journey.
Coast FIRE is the state where your portfolio is large enough to grow to your target retirement sum entirely on its own — without a single additional contribution. From this point, you no longer need to invest; you just need to cover your day-to-day living expenses.
How to Calculate Your Coast Number
You need three inputs: your target sum (how much you want at retirement), the expected average annual return of the portfolio, and the number of years until your planned retirement. The formula is straightforward:
- Coast number = Target sum ÷ (1 + annual return) ^ years to retirement
- Example: you want 9 million CZK at age 65 and you are 40 — 25 years to retirement. At an average real return of 6% per year, you need approximately 2.1 million CZK saved today.
Once you have this sum, compound interest does the rest of the work for you.
What This Means in Practice
After reaching Coast FIRE, you no longer need to save for retirement. You just need to earn enough to cover everyday expenses. Many people use this freedom to change careers — a less stressful role, part-time work, passion projects. It is not the end of activity, but the end of financial dependence on a high income.
Coast FIRE vs. Full FIRE
Full FIRE means your portfolio is large enough that you can leave the workforce today and achieve financial independence. Coast FIRE is an intermediate state — the portfolio keeps growing while you live without the pressure of aggressive saving. It is a great milestone for those who don't want to cut spending to the bone but want to secure their retirement. More on the full retirement planning framework in the article on monthly income of 30,000 CZK.
The Most Common Mistake
People underestimate how large an impact the length of the investment horizon has. Saving a smaller sum early is more advantageous than saving a large sum late. This effect is described in regular investing — even small monthly amounts accumulate over time and buy shares even during downturns.
FAQ
What is Coast FIRE?
The state where your portfolio is large enough to reach your target retirement sum on its own through compound interest, without further contributions. From this point, you only need to cover your everyday expenses.
How do I calculate my Coast FIRE number?
Divide your target sum by the factor (1 + annual return) raised to the power of years until retirement. The result is the amount you need saved today so that the portfolio grows the rest of the way on its own.
Do I have to stop working after reaching Coast FIRE?
No. Coast FIRE only means you no longer need to save for retirement. Many people continue working, but less intensively or in more meaningful roles — without the pressure of a high income.