Coasting Financial Independence Just Got EVEN BETTER

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Coasting Financial Independence Just Got EVEN BETTER:
Today, we examine why the lessons behind the idea of coasting financial independence might be even more beneficial in an environment of economic turbulence.
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[@meddings222]

As some one who's hit coast FI. Something to consider, you can't be the type of person who saves 40% to 50% of your take home, and then one day just stop saving. But decreasing the amount you save does feel like a very nice yearly raise.

[@luckyc3926]

💯

[@NextLevelLife]

It certainly does feel like a nice yearly raise! Thanks for sharing and congrats on hitting Coast FI :)

[@mauriceling]

Yes, exactly; it is mentally challenging to save 40% to 50% of your take home, and then one day just stop saving. I had been saving 50% for the last 14 years and now suddenly ask me to stop saving, I go into panic mode.

[@dansdrumchannel9239]

I am also coasting, it feels awesome to be able to let off the gas a little!! I still work, but 10-20 hours less per week, spend time with friends, family and hobbies. I still save over 60% of my gross pay, I think the habits that got me into coasting FI are set for life!😌

[@mleet3125]

Very nice! Wish I could do the same but alas, cannot.

[@kevinhuff]

I started saving decades ago so I would have enough to live extravagantly. Funny thing happened when I paid off the mortgage. I no longer have an attraction to status symbols.

[@NextLevelLife]

That's awesome! And congratulations on getting your home paid off :)

[@AngusFowles]

not often you log on and a video is posted 1 minute ago in precisely what you were searching for!

[@NextLevelLife]

I love that feeling, rare though it may be ;)

[@theglobalnurse8066]

I love Coast FI ! I have recently achieved my Coast FI number ( & still investing). And I am now working part-time & able to create my own schedule ... please make a video about what to do after reaching Coast FI :)

[@wildfoodietours]

Always loved the idea of coasting financial independence. Here's to making FI happen regardless of the particular method used to get there.

[@NextLevelLife]

Well said!

[@nateisright]

Not a big fan of retirement in the sense that there’s an end date to working, but it makes sense to aim at saving enough to become work optional. I guess the ultimate luxury is to choose one’s miseries, so we have de-risked our portfolio as we have gotten older. My default is to keep saving at maximum possible. When we want to travel or buy something we just do it. We don’t feel as if we’ve missed out on much by being disciplined, if anything, discipline has made us free.

[@NextLevelLife]

Well said!

[@financehealthai]

wow... great way to look at it.

[@Bob-yh7ir]

We hit coast FI a couple years ago. Retiring mid to end of next year currently. Unless team or mgmt changes cause too much hassle then I will leave sooner. We will experience the retirement smile due to extensive longer term travel in early retirement. I was never a fan of the general rule of thumb concerning have 25X your expenses saved up/invested. That's a bit high at least for us. Depending on how much you will spend of course, if you are a high spender then it makes sense perhaps, but our investments and cash only need to carry us for 10 years. Once I turn on SS, all our household expenses will be covered. Once my wife turns on her SS and a small pension she will get, we really won't need to pull from the investment buckets even with healthy amounts of travel in there. Only for an emergency car replacement or house repair etc.. I think we are going to have a problem with having too much money growing in IRAs and will want to pull down on them some including eating into a bit of principle in our mid 60s before turning on the SS stream so that we do not leave a tax bomb for our daughter when we pass. Oh don't worry, we spend some money, but having everything paid for and very little expenses for managing the house and all means most our spend is discretionary and for entertainment. Cheers !

[@NextLevelLife]

That's an awesome position to be in! Well done! And, yes, there's definitely a good possibility that you'll run into the "problem" of having too much money growing in your IRA based on what you're saying. That's actually a fairly common occurrence for retirees following the FI-focused lifestyle :)

[@truthteller6743]

Dollar cost average for 8 years. Stop at the end of 2020 due to the Pandemic. Dividends reinvested continued. Now starting again in 2023. Should be coasting in a few years. Paid off my mortgage this year, so I was still destroying my debt. Looking into living in Central America. Retirement might be coming sooner than I thought. Lol.

[@samsonsoturian6013]

Just FYI, the amount of money needed to live off the proceeds of investments is more than enough to start a business in your industry of choice. Ask yourself if you really want to retire, or do you want a job you consider to be fun.

[@NextLevelLife]

That's certainly a valid question to ask... and not just after you've accumulated Coast FI money.

[@GrumpierByTheDay]

Big difference is most businesses fail, and most people don't know how to run a business. If you've saved your entire working life, would you risk losing it buy yourself another job? I think for most people the answer is, and should be, no.

[@hrhsophiathefirst4060]

I am currently in coast FI but that is not my goal, chubby FI is the plan and hoping to earn my largest salary for the next 9 years to achieve it! Thanks for these great videos!

[@NextLevelLife]

Chubby FI... I like it! Best of luck :)

[@Ray_TambaBudol_Marcos]

Thank you for the upload, both my kids are under 4 y.o so if I coast now, by the time they are 8y.o i can spend more time them, I know teenage children are expensive. And sending them to college will be less stressful. This concept is life changing.

[@70qq]

ty

[@NextLevelLife]

Sure thing!

[@bryanparry4503]

Maybe I missed it but why did it just get even better? This just seemed to be the standard summary of coasting

[@mikesurel5040]

I would add home ownership as a caveat. If you plan on going into retirement owning your home, that takes a big chunk off your inflation adjusted expenses. No rent or mortgage can cut 300k or more off the size of your required nest egg. I think that is big enough to call out all on its own.

[@NextLevelLife]

An excellent point! If you will have a bought and paid for home (and plan to keep living in it post-FI) that would make a sizable difference in the amount of cash flow (and inflation-adjustments) you'd need your nest egg to produce to make ends meet :)

[@spencervance8484]

By the time i have hit fi. And i mean really hit it, i would have my house and farm. Been dreaming of that since...ever. That will greatly reduce what i need for fi

[@shrapmetal]

Problem with coast fi is i cant think of a different job i like that i am qualified for with acceptable pay. And my current job is stressful regardless of if i work full time or part time.

[@emilyau8023]

That's not a problem with coast fi. It still gives you the ability to contribute less and use the extra to enjoy life more.

[@PH-dm8ew]

So how do i use this if i am 60 and retired 90000 a year in expenditures including Taxes. Let's say I had 1,250,000 in a standard 60/40 portfolio and needed 40000 per year. to meet the 90000. Is there a way to calculate coasting FI in this case?

[@kmot92]

I like to think CoastFi is the most important. To know you can hit a normal retirement age and be okay later in life is a weight off your shoulders. All life events will only just speed it up or now you can have so much flexibility until then.

[@NextLevelLife]

That knowledge can definitely bring you some relief :)

[@Mister_Hassan]

Algo

[@michiganabigail]

I like Coast FI!

[@Azel247]

I didn't know that's what this is called! I kept trying to explain that I will be financially independent in the future thanks to compound interest, but I'm not able to stop working just yet. One question, can I just use the inflation-adjusted SP500 returns as my estimated interest rate instead of using an inflation adjusted nest egg sum?

[@NextLevelLife]

Glad to be able to help put a name to the idea! As for your question, it depends on what you invest in I suppose as well as how aggressive/conservative you want to be with your estimations. If you were (and would continue to be throughout your accumulation phase) fully invested into an S&P 500 index fund then it would make some sense to use an estimate of the future inflation-adjusted returns of that fund as your interest rate to calculate the size of your eventual nest egg. However, as I'm sure you know, even over longer time horizons the compounded inflation-adjusted returns of the S&P 500 can vary a fair amount. So that's definitely something to keep in mind as you make your estimations. Thanks for the question!

[@anniealexander3402]

I think it's best to keep working right now. There will be a lot of money to be made in this recession.

[@mleet3125]

I have a well paying job, no debt beside mortgage, and I still feel like it wont get FI.

[@skwisgaarskwigelf331]

You do love using that bald thumbs-up drawing, don't you? Why?

[@vendogg]

First

[@jasonduboise4548]

Your so blind to what's coming. You will own nothing and they will love it.

[@josemv25]

Approximate time?

[@ellisc2]

Savings rate of 50%? What the heck are they doing with their money? How are they not saving 75% - 80%?

[@ciscoXkidX25]

Lmao, paying for housing, food and other necessities. People make different amounts of money bud