OraA present-value question
First calculate the future portfolio target from the investment-funded spending gap and chosen withdrawal fraction. Then discount that target over the years to the selected retirement age. Required today = target ÷ (1 + g)n, where g is the annual growth assumption and n is the number of years.
This model assumes no further contributions to those invested assets during the coast period. It does not mean living expenses are funded before retirement: work or another source may still be needed to cover them.
A target 25 years away
Suppose the target is 750,000.00 in today's money, retirement is 25 years away and the chosen annual real growth assumption is 5%. Required now = 750,000 ÷ 1.0525 = 221,477.078773….
Rounded upward to a whole cent, the model requires 221,477.08 invested today. This is a deterministic scenario, not evidence that a 5% real return will occur or that the target will support a particular retirement.
Time and return carry the projection
A shorter coast period or a lower growth assumption raises the amount needed now. Fees and taxes that reduce growth can also move the result. Assets spent during the coast period cannot simultaneously remain invested in the calculation.
Use a return consistent with the target's money basis: a today-money target requires real growth after inflation. Review Investor.gov: managing lifetime income for lifetime-income context and Investor.gov: investment and inflation risk for uncertainty in investing.
The FIRE assumptions guide distinguishes a discounted Coast target from a withdrawal safety test. If future contributions are part of your scenario, use the FIRE accumulation calculator rather than treating this no-contribution calculation as the same plan.
Coast does not mean financially independent today
Coast FIRE differs from immediate financial independence because the projected portfolio is not yet available at its future value. It also differs from a FIRE timeline that continues regular saving. Consider access restrictions and emergency funds separately; the discounted target is not a suggested allocation.
Common questions
Can I stop working after reaching Coast FIRE?
The model does not fund current living costs. It assumes investments are left untouched to grow until the chosen future date.
Are future contributions included?
The coast requirement assumes no additional investment contributions. Use the FIRE timeline for a continued-saving scenario.
Should I use nominal or real growth?
Use growth consistent with the target. If the target is in today’s purchasing power, use an assumption after inflation and fees.
Educational estimate using the stated assumptions. Fees, taxes, changing rates and individual circumstances can change an outcome. This is not personalized financial advice. Read the estimates disclaimer.