[USER]

I know this is just math but looking to see the steps
-If one is 43, $2mm invested in index funds and $500k invested in US Treasuries

-Yearly $130k spend

Is this person Coast FI right now?

If this person retired now and stopped investing any more, when would they run out of money?

Assuming $130k spend stays the same (or lowers a little but doesn’t increase).

The $2mm is invested in index funds like VTSAX and VOO, the $500k in treasuries earn about 3-4%.

[Shelley]

$11K expenses per month seems high. Does this person have an expensive mortgage? Other high debt?

[Sean]

Coast fi doesn’t mean you can retire. It means you can keep your spending the same, but continue working, but just stop saving for retirement.

Often that involves take a lower stress less pay job

[Shelley]

Coast FI: Yes, this person is likely Coast FI because their assets are expected to grow sufficiently to reach their target amount by retirement age (assuming a 7% return).

Time Until Running Out of Money: If they retired now, assuming no additional contributions and constant $130k spending, they could potentially last more than 22 years, thanks to the continued growth of their index fund investments.

The actual duration would depend on market performance, but they are financially secure for a long time.

[Tung]

Get a financial planning software to run simulation on different scenarios. It will show you the steps.

It can give you a range of when that person will run out of money depending on how stock investment performs

You’ll need to add health insurance cost if retired early

[Dave]

How are the treasuries earning under 4%?
But yes, pretty much coasting from here if you’re making $130k after tax

[Author]

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