The Freedom of CoastFI: How to Leverage Your Savings to Pursue What Matters Most
Imagine reaching a point in your career where you've saved enough that your money is on autopilot toward your retirement goals. At that point, the pressure to keep aggressively saving or investing starts to fade. Instead, you can relax and let your savings "coast" into the future, hitting your retirement target without needing to work harder or longer.
This is the power of CoastFI, a concept that, when applied correctly, can give you incredible freedom. Once you’ve saved enough early in your career, you can shift your focus from accumulating wealth to pursuing what matters most to you—whether that’s taking more time off, transitioning to a passion project, or making a career change without the fear of financial instability.
CoastFI is more than just a financial milestone. It’s a mental shift, a new way of thinking about work, life, and money. The question becomes less about how much you need to save and more about how you want to live.
What is CoastFI, and What Can It Do for You?
CoastFI stands for "Coast Financial Independence," and it refers to reaching a point where the money you've already saved and invested is on track to meet your retirement goals—without needing to add significantly more. Essentially, you've saved enough that your investments can grow on their own, thanks to compound interest, allowing you to “coast” into retirement.
Here’s what that means in practice:
You can stop saving as much: Once you hit your coast point, you don’t need to contribute as aggressively to your retirement accounts.
You can reduce your income needs: Without the pressure to save large portions of your income, you have the flexibility to reduce your work hours or take a lower-paying but more fulfilling job.
You can spend more freely: Knowing your retirement is already secure, you might choose to enjoy more of your money now, whether that’s through travel, hobbies, or simply more time with family.
The key idea here is flexibility. CoastFI gives you options. You can continue working if you want, but without the constant stress of maximizing your savings or meeting retirement contribution targets. Whether you decide to take a risk in your career, cut back on work, or explore new passions, CoastFI gives you the peace of mind that your future is secure.
The Mental Shift: Why CoastFI is So Powerful
What makes CoastFI so compelling is the psychological relief it offers. For many professionals, financial independence is synonymous with freedom, but the journey to full financial independence can feel overwhelming. CoastFI gives you a taste of that freedom much earlier in life.
Less financial pressure: When you no longer have to save aggressively, you free yourself from the stress that comes with every paycheck. Your hard work has already put you on track, so you can focus more on the present.
Flexibility in career choices: Whether you’ve been thinking about switching industries, going part-time, or even starting a business, CoastFI lets you make that move without the looming pressure of retirement savings.
Living life on your terms: CoastFI is about creating the life you want without waiting for full financial independence. It’s the freedom to take risks, pursue passions, and live with more balance—right now, not decades from now.
How CoastFI Changed My Life
Personally, CoastFI gave me the confidence to make a significant change in my career. I spent years as an engineer, diligently saving and investing with a clear goal in mind: financial independence. Once I hit my "coast point," I realized I didn’t need to save as aggressively anymore. That realization opened up a world of possibilities for me.
With my retirement savings on autopilot, I no longer felt tied to a job that didn’t fulfill me. I wanted to start my own financial advisory firm, where I could combine my love of helping others with my experience in financial planning and investing. CoastFI gave me the flexibility and confidence to make that leap. I knew my retirement was secure, so I could focus on building my business on my own terms, without financial stress weighing me down.
This shift didn’t just affect my career; it changed my entire outlook on life. I had the freedom to pursue something meaningful, knowing that my long-term financial goals were covered. That’s what CoastFI can do—it opens doors and gives you the freedom to live life on your terms, not your paycheck's terms.
What Would You Do with More Flexibility?
Imagine knowing that your future is secure and you can focus on what excites you today.
What would that kind of freedom look like for you?
Start a passion project: Whether it's starting a small business, diving into a creative endeavor, or contributing more to your community, CoastFI gives you the breathing room to pursue what excites you.
Switch to a more fulfilling career: Perhaps you’ve thought about switching industries or taking a lower-paying role that aligns with your values. CoastFI gives you the financial cushion to make that transition.
Spend more time with loved ones: Work can often take up so much time that it leaves little room for family, friends, or hobbies. CoastFI gives you the option to scale back your work life and dedicate more time to what truly matters.
Take a risk: Want to move across the country? Travel the world? CoastFI can provide the flexibility to make those bold decisions without the financial anxiety that often holds people back.
For many mid-career architects and engineers, CoastFI offers the freedom to take risks without the stress of wondering whether your retirement is secure. It gives you options to create a better balance between your work, passions, and personal life.
How to Reach Your Coast Point: The Key Steps
Achieving CoastFI doesn’t happen overnight. It requires thoughtful planning, disciplined saving, and a long-term perspective. But once you understand the mechanics behind it, the path becomes much clearer.
Here’s how you can get started on your journey to CoastFI:
Understand your retirement goals: The first step to reaching CoastFI is to determine how much you’ll need to retire comfortably. This number will depend on your desired lifestyle, retirement age, and current financial situation.
Maximize retirement savings early: CoastFI works best when you start saving aggressively early in your career. This gives your investments plenty of time to grow through compound interest. Take full advantage of retirement accounts like your 401(k), IRA, or other tax-advantaged accounts.
Invest in a diversified portfolio: Let your money work for you by investing in a diversified portfolio. Focus on long-term growth and consider working with a financial advisor to tailor your investments to your risk tolerance and retirement timeline.
Track your progress: CoastFI isn’t just a set-it-and-forget-it strategy. Regularly check in on your financial progress to ensure your investments are on track to meet your retirement goals. This can give you peace of mind as you move toward your coast point.
Celebrate reaching your coast point: Once you’ve built a large enough nest egg, celebrate the fact that your retirement is already secured! You can now choose to slow down on saving and focus on the areas of your life that matter most to you.
How Do You Know If You've Hit Your Coast Point?
So, how do you know when you've hit that sweet spot where your money can "coast"?
Here’s how to calculate your Coast to Freedom Number:
Coast to Freedom Number Today = Financial Freedom Number x (1+rate of return)^(current age-financial freedom age)
Financial Freedom Number = Monthly Expenses x 300
There are a few other things to consider:
You are estimating your future monthly expenses this could change based on life factors, changes in priorities, inflation, etc.
You have a solid investment plan that’s aligned with your risk tolerance and projected returns.
You’re comfortable scaling back your savings and confident that your existing investments will grow enough to meet your retirement timeline.
If you're unsure whether you've reached your coast point—or want to know how close you are—now is the perfect time to take stock of your finances and work with a financial advisor.
Find Out If You’ve Hit Your Coast Point
Curious if you’re at the stage where you can let your money coast? Or do you want to know how to get there faster?
Let’s talk. I can help you figure out whether you’ve reached your coast point and build a plan that offers more flexibility in your career and life. With a clear strategy, you can feel secure in your future and empowered to pursue what really matters.
