GLOSSARY · FIRE & EARLY RETIREMENT
Coast FIRE
Having enough invested today that, with no further contributions, it is expected to grow to your FIRE number by a chosen retirement age. After that point your earnings only need to cover current spending, not new saving.
Also called: coast financial independence, coastfi
FORMULA
Coast number = FIRE number ÷ (1 + real return)^(years to the target age)
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · RETIREMENT PLANNING FUNDAMENTALS · FOUNDATIONSDeciding What Retirement Means for YouCHAPTER · FIRE: FINANCIAL INDEPENDENCE RETIRE EARLY · DEEP DIVEWhat FIRE Is, and Its FlavoursRELATED TERMS
SOURCES
- The Theory of Interest. Irving Fisher, 1930 (real versus nominal rates).