[USER]

Does it make sense to Coast FI at 30 with $350K in the stock market? If you retire traditionally at 65, that $350K compounded over 35 years at an average 8% annual return would grow to ~$5M, even without adding another cent.

Using the 4% rule, this would provide $200K/year in retirement income.

Given that, wouldn’t it make sense to focus on covering your basic living expenses now, doing work you enjoy, or pursuing a less stressful lifestyle, as long as your spending doesn’t change drastically?

Would love to hear thoughts or experiences from others who’ve considered this path!

[Saif]

200k may not be worth a lot in 35 years from now. Too much uncertainty. I would continue to invest, maybe adjust the amount

[Denny]

Why would you want to retire at 65 as opposed to a much younger age? So much can happen between now and then that may change your perspective or your needs.

I’d keep investing and lower your retirement age target.

[Watson]

I don’t think your principal will continue to grow if you’re drawing 4% ($14,000.00) which a couple of bad years will erode that saving very fast.

I say do something like Barista FI but you don’t need to touch that $350k.

[David]

Pretty sure the 4% rule was based on a 30 year retirement, not a 55-60 year retirement AND your 350k would not compound to 5 mil if you retire at 30 and start drawing 4% annually from the account.

[Aaron]

Maybe look at it like a floor for your finances. Try to continue saving and investing for as long as you can to increase your odds of success. You have to consider that unexpected things could happen.

The market might not just go up 8% a year forever.

You might end up with some expensive health complications, maybe you decide to get kids and then your expenses are way higher, etc.

basically don’t plan using overly rosy assumptions that will set you up for a negative surprise.

[George]

8% return, if over inflation, would be a tad too optimistic IMHO

[Judy]

You need to factor in inflation. Redo your calcs with an 8% return – 3% inflation, so a net 5% return.

And a 3-3.5% withdrawal rate.

[Jason]

Maybe.
You forgot about inflation.
To make it easy, compound by 5.5% (your 8% total return minus 2.5% inflation).

Apply the 4% withdrawal to that number. Do you still have enough?

Also, how sure are you that you’ll be willing and able to continue working to age 65?

[Jason]

I am 36 and I have very little expenses and a lot more invested and I feel I need a lot more in the market.

[Author]

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