FIRE
With Coast FIRE, enough has already been saved that compound growth alone will lift the portfolio to the FIRE number by retirement age, without any further contributions.
Coast FIRE describes an intermediate stage on the path to financial independence. Once a certain amount has been saved, compound growth alone is generally enough to lift the portfolio to the target FIRE number by retirement age. Further contributions are then, on paper, no longer required.
The appeal is that pressure eases from this point on: current income only needs to cover present living costs rather than also funding a high savings rate. Those who wish to can cut back working hours or move to a less lucrative but more fulfilling job.
Whether the calculation holds depends heavily on the assumed returns and the time horizon, however. Past performance is no guarantee, and a long investment horizon remains a precondition for compounding to do its work.
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