ChooseFI Podcast Summary: “Coast FI Masterclass | The Fioneers | Episode 538”

Release Date: March 17, 2025

In Episode 538 of the ChooseFI podcast, hosts Jonathan and Brad welcome back special guests Jess and Corey from TheFI Pioneers for an in-depth masterclass on Coast FI—a pivotal concept within the Financial Independence (FI) community. This episode delves into the nuances of Coast FI, explores Jess and Corey’s personal journey toward achieving it, and provides actionable insights for listeners aiming to optimize their path to financial independence.

1. Podcast Update and Community Announcement

Brad kicks off the episode by sharing exciting news about the launch of the new ChooseFI member site—a platform intended to replace the traditional Facebook groups. He emphasizes its features, such as daily updates from Jonathan, event notifications via email, and improved community interaction. This update underscores ChooseFI’s commitment to fostering a more robust and interactive community experience.

Brad [00:00]: “We finally built it. We've dreamed of this since 2017 and we finally have the technology.”

2. Introducing Coast FI

Brad introduces the concept of Coast FI, highlighting its significance within the FI landscape. He explains how Coast FI differentiates itself from the binary notion of being FI or not, presenting it as a flexible milestone that allows individuals to reclaim decades of their lives by optimizing their financial strategies.

Corey defines Coast FI as:

Corey [04:13]: “Coastfi is the financial milestone where saving and investing for retirement becomes optional. It's the point on your investing journey where you have enough already invested that you no longer need to contribute and you will still reach your financial independence number by the time you're aiming to retire.”

Jess adds clarity by contrasting it with traditional FI:

Jess [04:41]: “Financial independence we think of as when you reach FI, your work optional, whereas Coast FI is your savings optional.”

3. Understanding Coast FI Through Financial Calculations

Brad introduces the Rule of 72, a fundamental financial principle used to estimate the time required for an investment to double based on its annual return rate. He illustrates how this rule applies to Coast FI by demonstrating that with an 8% annual return, an investment doubles every nine years.

Brad [05:53]: “You take the number 72 and divide by your expected annual return. So 72 divided by 8 equals 9 years for your money to double.”

Jess explains the practical application of the Rule of 72 in determining Coast FI requirements:

Jess [06:36]: “You can put in 65 or 60 or traditional, you know, any traditional retirement age that you want into that calculator to see how much would I need...”

This mathematical foundation allows Jess and Corey to pinpoint their Coast FI milestones, providing listeners with a clear method to calculate their own financial thresholds.

4. Jess and Corey's Journey to Coast FI

The core of the episode focuses on Jess and Corey’s personal experiences transitioning to Coast FI over the past six years. Corey recounts their situation four and a half years prior, highlighting their combined income of around $190,000 and the catalyst of Jess’s toxic job environment and subsequent medical leave.

Corey [10:42]: “Jess was in a very toxic job... It really forced us to reevaluate our plan.”

Jess shares a pivotal moment during a vacation in Panama, inspired by Tanya Hester’s book Work Optional, which crystallized their realization that they could achieve Coast FI much earlier than initially planned.

Jess [12:56]: “What if I never had to work full time ever again at like, you know, the age of 31, 32...”

5. Lifestyle Adjustments and Experimentation

Upon achieving Coast FI, Jess and Corey explored various lifestyle changes, emphasizing the importance of experimentation. They experimented with the camper van lifestyle, which led to purchasing and customizing their own van. This experimentation allowed them to test their desires for location independence without jeopardizing their financial stability.

Jess [21:50]: “We decided to use some of that money to do a camper van experiment...”

The couple reduced their savings rate from 60% to 20% during this period, demonstrating that increased spending on meaningful experiences did not derail their Coast FI trajectory.

Jess [25:11]: “Our savings rate to about 20%. So we went from having a 60% savings rate to a 20% savings rate...”

6. Psychological Aspects and Overcoming Money Fears

A significant portion of the discussion centers on the psychological challenges associated with transitioning from a high savings rate to a state where saving becomes optional. Jess and Corey share candid reflections on their money fears and the emotional hurdles they encountered.

Corey [36:43]: “I used to assume the presence of fears was an indicator that I was either doing something wrong or that I needed to change course.”

They emphasize the importance of separating financial milestones from personal lifestyle decisions, allowing for flexibility without the pressure of adhering to rigid financial plans.

Corey [20:12]: “Coastfi gives us the option of decreasing our income...”

Jess highlights the value of maintaining a separate Runway—a cash reserve—to provide a safety net while experimenting with new lifestyle choices.

Jess [30:12]: “Two years of Runway that if we generated zero dollars for a year and a half or two years, we would still be okay.”

7. Handling Financial Uncertainties and Market Fluctuations

The episode delves into how Jess and Corey navigated financial uncertainties, such as market volatility and unexpected expenses. By maintaining a robust investment portfolio and a dedicated cash runway, they were able to absorb shocks without compromising their Coast FI status.

Jess [36:03]: “It was helpful to have that cash Runway as a separate bucket...”

They discuss their strategy for moving to a lower cost of living area, selling their Boston condo, and managing the psychological stress associated with reallocating their assets.

Jess [30:46]: “We had to withdraw from our taxable account to buy our home in cash and do some, like, necessary house projects...”

8. Practical Tools and Resources

Jess and Corey provide listeners with valuable resources to facilitate their own Coast FI journeys:

• Coast FI Calculator: An essential tool available on ChooseFI’s website that allows individuals to input their retirement age and desired financial independence number to determine their Coast FI milestone.

• Coast With Confidence Course: A forthcoming four-week course designed to help individuals gain confidence in their financial numbers and overcome money fears. Jess and Corey invite listeners to join the waitlist for upcoming cohorts.

Corey [59:04]: “We're also launching our next cohort of Coast With Confidence...”

9. Conclusion and Final Thoughts

Brad wraps up the episode by reinforcing the idea that financial independence is not a one-size-fits-all concept. He applauds Jess and Corey for their transparent and flexible approach to Coast FI, encouraging listeners to embrace their own unique paths.

Brad [57:07]: “We're all human. We have to, we have to understand that.”

Jess and Corey echo this sentiment, emphasizing the importance of intentional decision-making and continuous adaptation in one’s FI journey.

Jess [48:15]: “You could do all of these things and have more freedom, or you can make changes right now that could extend your Coast FI timeline...”

Key Takeaways:

1. Coast FI Defined: Achieving a financial milestone where active saving is optional, allowing investments to compound and reach FI automatically by the target retirement age.

2. Rule of 72 Application: A simple tool to estimate investment doubling time, crucial for planning Coast FI timelines.

3. Flexibility and Experimentation: Embracing lifestyle changes and experimenting with different living arrangements can enhance life quality without derailing financial goals.

4. Psychological Resilience: Acknowledge and navigate money fears by maintaining separate financial buffers and fostering open communication within relationships.

5. Community and Resources: Leveraging tools like Coast FI calculators and educational courses can empower individuals to tailor their FI journey effectively.

Notable Quotes:

• Corey [04:13]: “Coastfi is the financial milestone where saving and investing for retirement becomes optional.”

• Jess [04:41]: “Financial independence we think of as when you reach FI, your work optional, whereas Coast FI is your savings optional.”

• Corey [36:43]: “I used to assume the presence of fears was an indicator that I was either doing something wrong or that I needed to change course...”

• Jess [48:15]: “You could do all of these things and have more freedom...”

Further Resources:

• Coast FI Calculator: choosefi.com/calculator
• Coast With Confidence Course Waitlist: thefioneers.com/coast-with-confidence
• TheFI Pioneers Website: thefioneers.com
• ChooseFI Local Groups: choosefi.com/local

This episode serves as an insightful guide for those exploring alternative paths within the FI movement, demonstrating that achieving financial freedom is a personalized journey that can accommodate various lifestyles and preferences.