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Coast FI

Coast FI is the version of Financial Independence where you’ve reached your “retirement number” ahead of actual retirement. Your net worth is at a point where its growth, even at a modest rate, will get you to the retirement number you seek in retirement. This means that you could stop saving completely and still be OK.

I’m not here to debate the concept (don’t forget inflation everyone!) because it’s not important. A Coast FI number exists for everyone, it’s just a question of what that number is.

I did, however, want to highlight what happens when you hit that number. It’s a lot like actual retirement because you do stop saving because your income drops to zero.

But what do you do? How do you make that mindset change? It’s very challenging (especially if you are the type that identifies with your work… that’s a whole different transition) and the first post goes into it a little bit with someone who hit Coast FI early:

I Didn’t Save Any Money Last Month [Financial Mechanic] – “I bought things that struck my fancy in the window, I picked up bouquets of flowers to bring home, and I put groceries in the cart without checking the price tag. This is extremely different to how I usually operate (and obviously not a privilege everyone can afford). Over the years I have written about frugal adventures in other countries, my low grocery spending, and how I furnished my apartment with secondhand goods. I usually save 75-85% of my paycheck after tax. This is the first time I’ve ever not saved a penny.”

Speaking of coasting, how about a two part interview with someone who has a portfolio that generates $360,000 in dividends each year? Bob from has a two part series that explains it all (one caveat, they are in Canada so US readers may not recognize some of the accounts they have access to but everything else still adds up):
Living off dividends – How I’m receiving $360k dividends a year & paying almost no taxes – Part 1 and Part 2

This video of a horologist working his magic on a Tissot watch is mesmerizing:

Did anyone else get super anxious when he started pulling all the pieces out???