fwiw, I like saving and compounding! I'm not Josh, and I don't spend 90% of my income. But I do think it's freeing knowing once you've hit coast FIRE that you can enjoy yourself and worry about saving a little bit less :). 👋 Add me on Instagram and say hi - instagram.com/meyersonjoel/
Hey Joel, I love your videos. I also had a doubt. Are you supposed to invest he cash that you put aside into mutual funds or something? And what do you mean by Current Invested Assets in the Calculator?
Our goal is to hit CoastFIRE in five years (~$750,000) in our mid thirties. We have a very good income but stressful work for my wife. Ideally we will scale back then and ideally only hit our TFSA contributions each year (equivalent to the Roth IRA). LOVE the idea of CoastFIRE!
That’s such an amazing concept! I’ve always seen people saying save, save, save. But this seems a lot more manageable and enjoyable than that! Thanks for sharing Joel :)
A couple of years ago I realized that I have enough saved that I can reach my retirement target even if I don't contribute another dollar towards investments. I did not know this had a name and that so many others are doing it too!
Yep Coast fire is awesome, easiest fire and the best. Some people might only need 500k to retire on while others might need 5 million. Everyone has their number. Its all about not "having" to work again. Also most people will continue to invest a little its just too addictive but its so much more freeing knowing at the end of day your retirement is secure. Compound interest is truly something special.
Loved your videos . Thank you for so much for the videos. I learned way more in past 2 days binge watching your channel than I learned from my dentist husband practicing in northern Ontario for 3 years. Thanks for being so candid and so open in your conversations. Being a personal finance nerd myself with soon to be licenced dentist in Canada - I truely appreciate the knowledge you shared .
Would love to see a video on what specifically we could invest in that has compound interest. E.g. If we are saving 3k a month, where can we put it? What options are out there and what are the pros/cons of each. Keep it up!!
Coast Fire is a helpful strategy but keep in mind its back of the napkin planning. I use much more conservative rates and numbers to make sure I am successful in reaching my goals. I will reach the coast FIRE goal then continue to save at least 15% so I will reach my goal and still have more to spend along the way than I would saving 20% or more.
This is an awesome concept that I hadn't thought about before. Can you tell us more about how/where in the stock market you are investing to have safe returns of 10.5%? (Mutual funds or ETFs or real estate ect...) I do have exprence investing in the stock market and can say it can be quite risky at times. For the coast FIRE method I think it's even more important to invest in safe opertunities because we are relying on future returns to contribute to our FIRE numbers compared to already having the total FIRE number saved before hand.
The thing I find troublesome with these fire plans is that they all seem to assume that the American stock market will continue to grow indefinitely long term, which if you think about it, might be too good to be true. Even if you use the past data for a hundred year, the future century may very well be very different from the previous one. I would lower that expected investment gain a lot more to like a 5 to 7% to be on the safe side.
I'd actually say that's a strength of Coast FIRE - you're not retiring, so if investment returns don't end up being as expected, or there's a crash right when you plan to actually retire, you're still working. Overall though, I'd say over a long enough period of time, I'm not too concerned about the future being drastically different than the past. Don't bet against America.
@@jmey That I would agree. This is a better strategy than the traditional fire plans. And I'm not betting against America, I'm saying that 10.5% annual return is too optimistic. It's not impossible, but it would require a good knowledge of economics and finance and active planning and managing. Simply buying ETFs likely wouldn't cut it.
Hey Joel, I love your videos. I also had a doubt. Are you supposed to invest he cash that you put aside into mutual funds or something? And what do you mean by Current Invested Assets in the Calculator?
invested assets is the current value of your assets you have invested. that would be mutual funds, equities, etfs, crypto, real estate, or whatever else you do. you then put in your expected risk adjusted return (investment growth rate) and how much your adding to your assets each month to calculate. good luck!
