Section 5 of 7

Retirement Planning

Retirement feels distant when you are 25, but that distance is your greatest financial advantage. Every year you delay costs you more than the year before. Use these tools to find your financial independence number, build toward it, and understand when compound growth alone can carry you to the finish line.

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Your Financial Independence Number

How much do you actually need to be financially independent? Pick your withdrawal rate and get a clear, defensible target.

Your financial independence number is the portfolio size that, when you apply a sustainable withdrawal rate, fully covers your living expenses — indefinitely. The classic 4% rule (from the Trinity Study) says you can withdraw 4% of your portfolio per year without running out of money over a 30+ year horizon. Flip the math: your annual expenses divided by your chosen withdrawal rate gives you your financial independence number. Use the dropdown below to see how the target shifts based on how conservative or aggressive you want to be.

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Picking the right withdrawal rate: The 4% rule was designed for a 30-year retirement starting around age 65. If you plan to retire early, use 3.5% — a longer runway requires a larger cushion. A rate of 4.5–5% may work if you expect meaningful supplemental income (rental income, part-time work, etc.) in your early retirement years.
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CoastFI Calculator

Find the point where you can stop contributing, and let compound growth do the rest.

CoastFI is the amount of money you need saved right now so that, with no additional contributions, it will grow to your financial independence number by the time you want to retire. Once you reach your CoastFI number, every dollar you earn only needs to cover current living expenses. Retirement contributions become optional, not required. For most young investors, CoastFI is the first major retirement milestone worth targeting specifically.

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Why CoastFI matters early: At age 25 with a 65 retirement target, your CoastFI number is roughly half of what it is at 35, because compounding has 40 years to work instead of 30. Every year earlier you hit this milestone translates directly into decades of financial flexibility. You still need income to live, but the retirement problem is solved.
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Watch the Tutorial
What Is Coast FI and How Do You Calculate It? ↗