FIRE vs Coast FIRE vs Barista FIRE: Which Target Are You Measuring?

Three labels, three different questions

These are informal planning labels, not standardized account types. State the cash flows instead of assuming everyone uses the same definition. The FIRE calculator models accumulation while saving; the Coast FIRE calculator tests the zero-further-deposit milestone. Neither validates a retirement withdrawal strategy or employment income.

Keep one spending target and one money basis

In this original fictional USD example, portfolio-funded annual retirement spending is $40,000 in today’s purchasing power, including the taxes and healthcare allocated to it. A selected 4% initial withdrawal fraction gives $40,000 / 0.04 = $1,000,000. This is an arithmetic scenario, not a safe-rate recommendation. At 3% the same spending requires $1,333,333.33; at 5% it requires $800,000.

For the Coast comparison, choose a 5% effective annual real growth assumption, after fees. There are no new deposits or withdrawals during growth. A 7.625% effective nominal return, zero additional fee and 2.5% inflation produce exactly the same real assumption: 1.07625 / 1.025 − 1 = 5%. Actual returns will not follow a fixed path.

Why the Coast milestone depends on time

At 45, $1,000,000 / 1.05^20 = $376,889.48. Under that fixed assumption it grows to the later target. Withdrawing current living expenses from this same balance would break the no-withdrawal projection. At zero real growth the Coast threshold is the full $1 million; negative real growth can make the required starting balance greater than the later target.

Use Future Value to reconcile a growth projection only after matching nominal/real rates and contribution timing. Entering a real return and then applying inflation again would remove inflation twice.

A Barista scenario needs an earned-income end date

Suppose the same person expects $24,000 a year of spendable part-time earnings after work expenses and taxes. During that employment period, the portfolio-funded gap is $40,000 − $24,000 = $16,000. At the selected 4% fraction, $16,000 / 0.04 = $400,000. This reduced arithmetic target depends on continuing earnings and is not interchangeable with the full $1 million target.

If that work ends at 60, its $24,000 does not continue automatically. A dated plan must replace it through later benefits, lower spending, a larger portfolio or other evidenced income. Do not assume a particular employer provides health insurance or that a part-time job is guaranteed. Our two retirement calculators do not model this changing earned-income bridge.

Turn the label into a cash-flow plan

Write down the earliest withdrawal date, the last planned contribution date and when each income stream starts and stops. Separate an accessible bridge fund from assets with withdrawal restrictions. Keep emergency cash and home equity outside invested assets unless the plan explicitly and realistically uses them. Recalculate after a material change in spending, family needs, fees or time horizon.

Common mistakes

Comparing a nominal future million with a today-dollar target; treating gross wages as spendable income; subtracting a later pension from today’s bill; and withdrawing from a supposedly untouched Coast portfolio all change the question. A target can be met in an accumulation model while the withdrawal plan remains exposed to market losses. Read the withdrawal-rate and retirement-risk guide before interpreting target attainment.

Method and sources

Investor.gov’s compound-interest tool provides a public reference for principal, contributions, time and compounding. Our targets and age comparisons are original calculations. Investor.gov explains how fund expenses reduce returns. These examples use stated net-real assumptions and do not choose investments or a suitable withdrawal rate.