Same for me. I found out about index funds from a close friend at age 34. I am now 35 and already have my portfolio at £120k I know I will make it. I don’t need the £1.8m stated. More like £1-1.2m. I am investing at least £25k per year which will at 7% get me coast fire.
The true crime of society. And here we are with a divided country and nobody is talking about survivial skills like these. I wish this was mainstream. Oh well. I'll hide in my bunker.
I don’t understand how people need so much money for retirement. I can live very well off of around $3000 per month. My SS should be around $2500 per month. If I have enough in my 401k to withdraw $500-$1000 per month for 20-25 years that should be enough for me.
That's great to hear! Ultimately, it depends on your comfortable cost of living. We have people who listen or watch from high cost of living areas like Northern California or NY and they often need a lot more than others in the US.
@@MarriageKidsandMoney upon further inquiry I realized that a good chunk of IRA came from an inheritance when my dad passed 5yrs ago. I hope to talk to my financial advisor soon on what I can do with it. B/c I have seen stuff saying I have to take the $ out but I also saw I can transfer into a new IRA.... This is confusing stuff lol
@@demontank76 Yes, I think talking with a financial advisor could be a smart move. I suggest a fee-only CFP that you pay for their time and not for ongoing portfolio management.
This was such an encouraging video. We are close to hitting coast fire. As long as things go as planned, we should hit it in 2 to 3 years. I am not sure that we are going to change our lifestyle much, BUT I am expecting it to help me better mentally handle my 9 to 5
@@thesytchmake sure you don’t follow his math tho because it’s very incorrect. Be careful listening to TH-camrs who got a their knowledge from other TH-camrs!
Great question! Personally, I'm including assets that are invested in the stock market. For us, that is IRAs, brokerage accounts and the amounts invested in our HSA. We're not including cash savings in our HYSA, HSA or things like CDs. I hope that helps!
Great question! Currently, I do not (as a buffer for taxes, the status of the social security system in 20 years, etc), but you can definitely count it. Check out how much you are projected to receive on SSA.gov
The numbers are very high. I thought "oh, I'm Coast fire" until it hit me that they think about individuals, not couples. I will have to work for a long time to achieve anything like that. Probably until 55 or longer.
These numbers are just for educational fun. I'd recommend meeting with an "advice-only financial advisor" to discuss your specific situation. You may be better off than you think!
Quick math, you could probably slice all the numbers I shared in half. It sounds like if you had about $1-1.5 million when you retire you’d be in a good spot then. ($1-1.5 million x 4% withdrawal rate = $40k-$60k/yr) (Pension = $42k per year) Consider taxes, etc if your retirement funds are pre-tax. How much do you have invested so far?
I just recently learned about Coast Fire. I think I’ve already reached the coast fire number at 35 years old but how should I value real estate? I own a property that is fully paid off that’s worth around 250k. Currently it cash flows about $1500 a month. How would I value that when looking at Coast Fire?
7 หลายเดือนก่อน
Most of Fire number was based on diversified stock portfolio. If you go with property, there are a lot of other moving part you need to consider. Property is only have land value going up, the house is depreciated by time, need maintenance and big renovation in some stage. Cash flow performance is limited to location and circle of that suburb market pocket. Also, no study or research can tell you how your 1 property can consistently perpetuate like stock market. If you fund your retirement with property, you would need multiple property in different locations to reduce the risk. Hope it help, cheer
First of all, way to go! Second, it all depends on how much you spend and how your money is invested but I would venture to say yes. Check out our free Coast FIRE Calculator to check it out with your specific numbers: th-cam.com/video/MKQH02dc_Kg/w-d-xo.htmlsi=4eWEjgDMUTHkcbD2
It does not. Also, I would recommend checking out our updated version of this video in our pinned comment. th-cam.com/video/j1yJMkx6qZo/w-d-xo.htmlsi=rrTAESP8YMdT-V5d
I wonder if i am considered COAST FIRE. I plan on going hard for the next 5 years to get to 1 mil, then im going to just work part-time and enjoy hobbies in my 40s.
@@MarriageKidsandMoney yeah. I just realized I hit my coast number 3 years ago and never noticed. Now I just want to double down so I can work when I feel like it.
Please help. I am 64. We started investing really late. Looking to divorce. No debt, I have been a SAHM. 1/2 of Pension $22,015 per year and will have SS around $1,800 per month. Middle of building house and it went south. Do I sell the house as is? House is worth around $500,000 unfinished. Not much in savings. Around $200k How do I go from here?
Carol, you sound like you’re going through a very difficult time right now. If you are looking to divorce, I would highly recommend seeking a trusted divorce lawyer as soon as possible. The process can be lengthy and emotionally draining so it’s good to have someone on your side. I’ve done a few episodes on divorce that may help you: th-cam.com/video/SPN3CsBcQ9Q/w-d-xo.html And financial infidelity: th-cam.com/video/Syb5Z84y7OQ/w-d-xo.html
I have 180k in retirement accounts at 35, planning on needing 36k a year in retirement so I think I have enough for these accounts to coast so for the next 10 years I'll be focusing on building my gap account to pay for early retirement if needed (I'll probably will be making some income) I have 14 in brokerage account hoping for atleast 200k to 300k by then.
I believe you made a massive mistake here. Most of the fire community does so it’s not just you. But saying you need 1.85M at retirement does not account for inflation devaluing your purchasing power. 1.85M 32 years from now will only have a purchasing power equivalent of about 840K which would equal 34K annually (assuming 4% withdrawal) in annual withdrawals. This 840k figure is assuming about a 3% interest rate devaluing your money over time.
It does include inflation - 1:53 but it's not perfect for sure. I'll agree with you there. Definitely seek out a professional real-life financial advisor before making any investment decisions.
@@MarriageKidsandMoney you didn’t include it in the right part of the equation tho. That’s not how inflation impacts your retirement number. You can’t just subtract it from your interest. Inflation is important because it shows you what the value of your money will be at retirement, so instead of subtracting it from interest, you need to use it to determine the purchasing power of your money at your time of retirement, it has nothing to do with the interest calculation
@@astrahl you are right that it is not exact or perfect but it is pretty close. Here's another fun calculator to play with to show you the math isn't THAT far off: smartasset.com/investing/inflation-calculator The goal isn't perfect math. The goal is a realization that investing doesn't need to be a forever thing. I wish you the best on your journey!
@@MarriageKidsandMoney I mean to be fair it’s not even close is my point. That calculator says that in 32 years the equivalent of 1.85M is 4.1M so your off by a ton just so your aware!
Nice work! We could all use a little bit of love from the stock market. Also, don't forget to include your social security income and any other income from pensions or the like.
The real rate of return of the US stock market over the last 100 years has been around 7%. This includes inflation and assumes dividends are reinvested. Will everyone earn this amount? No. Does past market performance predict future market performance? No. Investing involves risk and you could lose money.
i've got a question. How does family size calculate into Coast Fire and other retirement calculations? or are the savings/returns the same for a various people: single, DINK, married 1 kid, married 6 kids, divorced, etc? i myself have 6 kids and wonder if that changes savings goals at all?
Great question! A lot of this boils down to annual spending now and then in retirement. Will your spending with 6 kids today be massively different than your retirement years? Check out our free Coast FIRE calculator to play around with your numbers: th-cam.com/video/MKQH02dc_Kg/w-d-xo.htmlsi=TKEjrYl7hS4BvXQ-
@@kimwieczorek1879 Excellent! At this point, enjoying your money, using it to spend time with the ones you love and giving back are the best uses of it, in my opinion. What goals or dreams do you have in retirement?
Ive reached coastfire, but living expenses where I live is high, requires i make at least $4500 cad/mo 🥲 with annual expenses up to $65k/ yr after tax with property taxes and things. Pre-tax annual would need to be at least $90k cad/year, i dont consider that being able to enjoy life the way i want considering thats the average pay for the field I'm in so I cant technically enjoy "coastfi" 😢
I feel what you're saying! Inflation has been rough over the past few years. Check out our updated version of this video from 2024: th-cam.com/video/j1yJMkx6qZo/w-d-xo.htmlsi=rrTAESP8YMdT-V5d
I'm glad you enjoyed the content and it was helpful for you. I appreciate the feedback on the jump cuts. Editing plays a big part in these videos. As for my voice, you'll have to take that up with God or my parent's genetic code.
@@MarriageKidsandMoneysorry, I didn’t mean it as a personal attack re your voice. I thought you were putting on a voice. I’m sorry. Anyway, I’ve watched some other videos of your so thanks. They’re good.
@@MarriageKidsandMoney Well maybe all depends on conditions. I have noticed those with good conditions don't say well my conditions were X which makes not sense since there are just some things we can't do much about. I always say I got to 39K cash due to luck and conditions because hard work alone would not have ever been enough. Too much of my present outcome(s) came down to luck and not hard work.
@@donaldlyons17 That makes sense. I would say becoming a millionaire or hitting Coast FIRE becomes A LOT easier when you make a lot of money. No doubt. During our millionaire family journey, we averaged around $190k per year in income. That helped A LOT!
@@MarriageKidsandMoney Yeah the only reason I even write is because other TH-camrs like "Our Rich Journey" keep talking about making average government incomes so lack of honesty is super problematic because it gives the wrong impression. THANK YOU FOR BEING HONEST!!!!👍
Check out our NEW and UPDATED Coast FIRE by Age 30, 40 and 50 video here: th-cam.com/video/j1yJMkx6qZo/w-d-xo.htmlsi=rrTAESP8YMdT-V5d
The reason I didnt invest more earlier is because I didn't know about investing until much later in life.
I hear this! I didn’t start seriously investing until almost 30
Same for me.
I found out about index funds from a close friend at age 34.
I am now 35 and already have my portfolio at £120k
I know I will make it.
I don’t need the £1.8m stated.
More like £1-1.2m.
I am investing at least £25k per year which will at 7% get me coast fire.
@@Leeandemma88 Wow, you're growing fast!
The true crime of society. And here we are with a divided country and nobody is talking about survivial skills like these. I wish this was mainstream. Oh well. I'll hide in my bunker.
@@ckg145 Thanks for watching! Please share and get the word out there. Life is for living!
I don’t understand how people need so much money for retirement. I can live very well off of around $3000 per month. My SS should be around $2500 per month. If I have enough in my 401k to withdraw $500-$1000 per month for 20-25 years that should be enough for me.
That's great to hear!
Ultimately, it depends on your comfortable cost of living. We have people who listen or watch from high cost of living areas like Northern California or NY and they often need a lot more than others in the US.
Wow, according to this video/chart I am like 150k ahead of being coast fire!
Guess I can pull back a bit & invest in stuff I can use before retirement
It’s a big decision and something to think about!
@@MarriageKidsandMoney upon further inquiry I realized that a good chunk of IRA came from an inheritance when my dad passed 5yrs ago.
I hope to talk to my financial advisor soon on what I can do with it. B/c I have seen stuff saying I have to take the $ out but I also saw I can transfer into a new IRA....
This is confusing stuff lol
@@demontank76 Yes, I think talking with a financial advisor could be a smart move.
I suggest a fee-only CFP that you pay for their time and not for ongoing portfolio management.
This was such an encouraging video. We are close to hitting coast fire. As long as things go as planned, we should hit it in 2 to 3 years. I am not sure that we are going to change our lifestyle much, BUT I am expecting it to help me better mentally handle my 9 to 5
That’s awesome! Please stay in touch as I’d love to celebrate your Coast FIRE win
@@MarriageKidsandMoney I definitely will!
@@thesytchmake sure you don’t follow his math tho because it’s very incorrect. Be careful listening to TH-camrs who got a their knowledge from other TH-camrs!
still doing #coastfire the best i can.
It’s been tough lately!!
So, when you say have this much invested you are including all types of investments? From HYSA to HSA to CD, to Brokarage accounts?
Great question! Personally, I'm including assets that are invested in the stock market. For us, that is IRAs, brokerage accounts and the amounts invested in our HSA.
We're not including cash savings in our HYSA, HSA or things like CDs.
I hope that helps!
We hit the coastfire number but lost 100k in the past 1 year. May lose another 50k this year with the current market condition.
I feel this so much!
What a rough year we’ve had.
I’m hopeful that things will pick up later this year or early next.
Market drops are factored into the 7% annual average return
When calculating my Coast FIRE number: should I take into consideration social security money I will receive when retiring?
Great question! Currently, I do not (as a buffer for taxes, the status of the social security system in 20 years, etc), but you can definitely count it.
Check out how much you are projected to receive on SSA.gov
The numbers are very high. I thought "oh, I'm Coast fire" until it hit me that they think about individuals, not couples.
I will have to work for a long time to achieve anything like that. Probably until 55 or longer.
These numbers are just for educational fun. I'd recommend meeting with an "advice-only financial advisor" to discuss your specific situation. You may be better off than you think!
Are these numbers for people earning 100,000 a year? Because in uk it’s about 35000 on average!
I would venture to say that these numbers would also be difficult for most Americans.
I make 70k yearly and will receive a gov pension of 3500 monthly after tax. How much more do I need to reach coast fire?
Quick math, you could probably slice all the numbers I shared in half.
It sounds like if you had about $1-1.5 million when you retire you’d be in a good spot then.
($1-1.5 million x 4% withdrawal rate = $40k-$60k/yr)
(Pension = $42k per year)
Consider taxes, etc if your retirement funds are pre-tax.
How much do you have invested so far?
@@MarriageKidsandMoney I have 400K in 401k and Roth.
@@ms.budgetmom8472 How many years until your retirement?
@@MarriageKidsandMoney 5 yrs.
You're already there
I just recently learned about Coast Fire. I think I’ve already reached the coast fire number at 35 years old but how should I value real estate?
I own a property that is fully paid off that’s worth around 250k. Currently it cash flows about $1500 a month. How would I value that when looking at Coast Fire?
Most of Fire number was based on diversified stock portfolio. If you go with property, there are a lot of other moving part you need to consider. Property is only have land value going up, the house is depreciated by time, need maintenance and big renovation in some stage. Cash flow performance is limited to location and circle of that suburb market pocket. Also, no study or research can tell you how your 1 property can consistently perpetuate like stock market. If you fund your retirement with property, you would need multiple property in different locations to reduce the risk. Hope it help, cheer
If I’m 36 with $4m invested am I coast fire?
First of all, way to go!
Second, it all depends on how much you spend and how your money is invested but I would venture to say yes.
Check out our free Coast FIRE Calculator to check it out with your specific numbers: th-cam.com/video/MKQH02dc_Kg/w-d-xo.htmlsi=4eWEjgDMUTHkcbD2
Does this video account for social security?
It does not.
Also, I would recommend checking out our updated version of this video in our pinned comment.
th-cam.com/video/j1yJMkx6qZo/w-d-xo.htmlsi=rrTAESP8YMdT-V5d
@@MarriageKidsandMoney thank you!
I wonder if i am considered COAST FIRE. I plan on going hard for the next 5 years to get to 1 mil, then im going to just work part-time and enjoy hobbies in my 40s.
It's fun to think about! Life can be improved with intentionality and planning
@@MarriageKidsandMoney yeah. I just realized I hit my coast number 3 years ago and never noticed. Now I just want to double down so I can work when I feel like it.
@@NomadicLifer Way to go!
Please help. I am 64. We started investing really late. Looking to divorce. No debt, I have been a SAHM. 1/2 of Pension $22,015 per year and will have SS around $1,800 per month. Middle of building house and it went south. Do I sell the house as is? House is worth around $500,000 unfinished. Not much in savings. Around $200k
How do I go from here?
Carol, you sound like you’re going through a very difficult time right now. If you are looking to divorce, I would highly recommend seeking a trusted divorce lawyer as soon as possible.
The process can be lengthy and emotionally draining so it’s good to have someone on your side.
I’ve done a few episodes on divorce that may help you: th-cam.com/video/SPN3CsBcQ9Q/w-d-xo.html
And financial infidelity: th-cam.com/video/Syb5Z84y7OQ/w-d-xo.html
I have 180k in retirement accounts at 35, planning on needing 36k a year in retirement so I think I have enough for these accounts to coast so for the next 10 years I'll be focusing on building my gap account to pay for early retirement if needed (I'll probably will be making some income) I have 14 in brokerage account hoping for atleast 200k to 300k by then.
I believe you made a massive mistake here. Most of the fire community does so it’s not just you. But saying you need 1.85M at retirement does not account for inflation devaluing your purchasing power. 1.85M 32 years from now will only have a purchasing power equivalent of about 840K which would equal 34K annually (assuming 4% withdrawal) in annual withdrawals. This 840k figure is assuming about a 3% interest rate devaluing your money over time.
It does include inflation - 1:53
but it's not perfect for sure. I'll agree with you there.
Definitely seek out a professional real-life financial advisor before making any investment decisions.
@@MarriageKidsandMoney you didn’t include it in the right part of the equation tho. That’s not how inflation impacts your retirement number. You can’t just subtract it from your interest. Inflation is important because it shows you what the value of your money will be at retirement, so instead of subtracting it from interest, you need to use it to determine the purchasing power of your money at your time of retirement, it has nothing to do with the interest calculation
@@astrahl you are right that it is not exact or perfect but it is pretty close.
Here's another fun calculator to play with to show you the math isn't THAT far off: smartasset.com/investing/inflation-calculator
The goal isn't perfect math. The goal is a realization that investing doesn't need to be a forever thing.
I wish you the best on your journey!
@@MarriageKidsandMoney I mean to be fair it’s not even close is my point. That calculator says that in 32 years the equivalent of 1.85M is 4.1M so your off by a ton just so your aware!
37, with $262k invested… little behind… if the market turns around soon that’ll help haha
Nice work! We could all use a little bit of love from the stock market. Also, don't forget to include your social security income and any other income from pensions or the like.
You are doing great! Any addition is bonus.
Are these aggregate numbers or individual? 220k per person or per household
Per household, that being said, I'm working on a new video right now with updated numbers. The 2022 inflation was brutal for this calculation!
Hi..nice video..I have one question in mind...how coast fire calculation account for inflation? Thanks...🙂
Is it in the "adjusted inflation" return?
The real rate of return of the US stock market over the last 100 years has been around 7%.
This includes inflation and assumes dividends are reinvested.
Will everyone earn this amount? No.
Does past market performance predict future market performance? No.
Investing involves risk and you could lose money.
HA!! ha ha ha... I'm basically 48yo and there is no WAY I'm near $730K saved... OMG, that's crazy... I'll be working until 90yo.. Ugh!
i've got a question. How does family size calculate into Coast Fire and other retirement calculations? or are the savings/returns the same for a various people: single, DINK, married 1 kid, married 6 kids, divorced, etc? i myself have 6 kids and wonder if that changes savings goals at all?
Great question! A lot of this boils down to annual spending now and then in retirement.
Will your spending with 6 kids today be massively different than your retirement years?
Check out our free Coast FIRE calculator to play around with your numbers: th-cam.com/video/MKQH02dc_Kg/w-d-xo.htmlsi=TKEjrYl7hS4BvXQ-
Hubby and I are 65, 58 and retired/disabled. Our mortgage is paid off, have no car or ccard bills, have 20k in EFund. What do we do next?? Ty
Congratulations on all of your efforts!
What is your income source in retirement?
SS, SSDI, PT job= 45k a yr.
@@kimwieczorek1879 Excellent!
At this point, enjoying your money, using it to spend time with the ones you love and giving back are the best uses of it, in my opinion.
What goals or dreams do you have in retirement?
Great video! Thanks.
Ive reached coastfire, but living expenses where I live is high, requires i make at least $4500 cad/mo 🥲 with annual expenses up to $65k/ yr after tax with property taxes and things. Pre-tax annual would need to be at least $90k cad/year, i dont consider that being able to enjoy life the way i want considering thats the average pay for the field I'm in so I cant technically enjoy "coastfi" 😢
I feel what you're saying! Inflation has been rough over the past few years. Check out our updated version of this video from 2024: th-cam.com/video/j1yJMkx6qZo/w-d-xo.htmlsi=rrTAESP8YMdT-V5d
@@MarriageKidsandMoney Ty!! will have a watch ☺️
Good content but IMO drop the silly voice / jump cuts
I'm glad you enjoyed the content and it was helpful for you.
I appreciate the feedback on the jump cuts. Editing plays a big part in these videos.
As for my voice, you'll have to take that up with God or my parent's genetic code.
@@MarriageKidsandMoneysorry, I didn’t mean it as a personal attack re your voice. I thought you were putting on a voice. I’m sorry. Anyway, I’ve watched some other videos of your so thanks. They’re good.
100K by 25 suggest a good income compared to expenses. How many people have 100K in 10 to 15 years they don't need over that time frame?
I would venture that would be difficult for most people!
@@MarriageKidsandMoney Well maybe all depends on conditions. I have noticed those with good conditions don't say well my conditions were X which makes not sense since there are just some things we can't do much about. I always say I got to 39K cash due to luck and conditions because hard work alone would not have ever been enough. Too much of my present outcome(s) came down to luck and not hard work.
@@donaldlyons17 That makes sense. I would say becoming a millionaire or hitting Coast FIRE becomes A LOT easier when you make a lot of money. No doubt.
During our millionaire family journey, we averaged around $190k per year in income. That helped A LOT!
@@MarriageKidsandMoney Yeah the only reason I even write is because other TH-camrs like "Our Rich Journey" keep talking about making average government incomes so lack of honesty is super problematic because it gives the wrong impression. THANK YOU FOR BEING HONEST!!!!👍