Money Guy Show – "Her Coast FIRE Plan Has Some MAJOR Holes | Making a Millionaire"

Hosts: Brian Preston & Bo Hanson
Guest: Danielle, age 33
Date: January 5, 2026

Episode Overview

This episode features Danielle, a 33-year-old self-employed sign language interpreter earning over $100,000 annually, who wants to pursue a “Coast FIRE” plan—a financial independence strategy where she works hard now, amasses enough assets early, and then “coasts” with minimal further savings while working less. Danielle seeks input from Brian and Bo on whether her current “take the foot off the gas” approach is sustainable, and how she might optimize her path to financial independence. The conversation dives deep into her income, spending, savings rates through different stages, life goals, and the crucial question: is it too early for her to coast?

Key Discussion Points and Insights

1. Danielle's Career and Earning Power

• Career: Self-employed sign language interpreter in the DC-Maryland-Virginia (DMV) area, working mainly for federal agencies due to high demand.
• Income Details:
  • Earns $105k–$120k/year—higher in this field due to her location.
  • She receives “200 emails a day” for available jobs, reflecting strong demand for her niche skills (01:27).
• Unique Dynamics:
  • Demand outstrips supply; highly niche field; work can be tailored (e.g., science, legal, medical).
  • Danielle: “I don’t think you can make this kind of money anywhere else in the country.” (05:47)

2. Financial Snapshot and Mindset

• Age: 33
• Net Worth: ~$181,000 (majority in investments—$165,000 saved since 2021)
• Spending:
  • Spends ~$4,000/month (though barebones, excluding optional expenses, would be $3,000).
  • Sets aside 36% of income for taxes due to self-employment (08:27, 35:05).
  • Budget includes reserves for taxes, health expenses, car savings, and travel.
• Savings Journey:
  • Dramatic increase in savings after 2021, driven by COVID-19 lockdown (invested $30k/year at her peak).
  • "I was putting aside like over $30,000 a year. And then I think the stock market probably helped a little bit..." (07:29)

3. Coast FIRE Plan and Life Philosophy

• Goals:
  • Pursue Coast FIRE: Save aggressively now to reach a threshold, then work less while only minimally adding to savings.
  • Inspired by “Die with Zero” philosophy—prefers enjoying wealth earlier since she doesn’t plan to have children.
• Target:
  • By 37, shift from 5 to 4 workdays/week and gradually work less over time.
  • Full retirement goal at 60, but flexible on when to scale down work.
  • "I'd say by 37 to 40, I would like to do [coast fire]." (14:57)
  • “I just want to do more of my living when I’m younger...” (14:15)
• Current Savings Rate:
  • Dramatic drop from saving 60% (peak) to 8%–15% now (including cash savings).
  • “I think I just got a little tired and I developed a lot of anxiety around it. Am I not going to have enough? But am I also just not doing anything in my life but hyper focus?” (32:23)

4. Holes in the Current Plan: Critical Analysis

• Too Early to Coast?
  • Brian & Bo challenge Danielle's assumptions:
    • Her projection of having ~$1.7M by 60 may be overestimated due to inflation and market uncertainties.
    • Using 7% returns without adjusting for inflation may distort future purchasing power—$1.7M could mean $757k in today’s dollars, which at a 4% withdrawal looks like just $2,500/month.
    • Her anticipated living expenses (~$4,000/month) could far outpace this.
      • “You're setting yourself up to basically live off of, in today's dollars, $2,500 a month... it was closer to $4,000.” (19:37)
  • Die with Zero critique:
    • Danielle’s assumption of being able to precisely “spend down to zero” is risky since no one can predict longevity or expenses.
    • “Dying at zero is a wonderful concept if you know when your exit is... The unfortunate part is none of us really know.” (18:09)
• Risk of Burnout and Gaps in Asset Growth:
  • Early burnout from “sprinting” with high savings, then slamming brakes to minimal savings.
  • Brian: “If you sprinted on a 26.2 marathon and you sprinted like it was 100 yard dash, it makes sense that you burned out.” (41:07)
  • Missing out on the power of compounding if she reduces savings too soon.
• Tax Optimization Missed:
  • Currently putting Solo 401k savings into Roth, but possibly better off (given current high effective tax rate) prioritizing pre-tax 401k for tax savings.
  • “With you being in that tax situation, it might be an interesting thing...to pre-tax. And in doing that, does that actually create a mechanism for me to save more money?” (37:16)
  • Danielle: “...I just have to click a different button...”

5. Customized Homework and Recommendations

Save More, But Find Balance:

• Do not drop to 8% savings yet:
  • Instead, target 15%–25% until assets reach the “tipping point” (~age 40).
  • Brian: “You leave knowing...there needs to be a base level. It’s more than 8%, but doesn’t have to be hog wild 60% either.” (33:03)
• Adjust for tax efficiency:
  • Max out pre-tax Solo 401k contributions (reduces marginal tax rate ~30%); use savings to still fund Roth IRA.
• Emergency Fund:
  • Beef up from $10k to $18k–$24k, matching 6 months’ real living expenses (12:09, 54:31).
• Healthy margin/flexibility:
  • Stick to 25% savings of gross income until age 40; then can confidently drop savings to “coast” at ~5%.

Future Projections:

• If she saves 15% to 37, then 12.5% after, she’ll reach FI but with little margin (~$4M target, 50:15).
• If she saves 25% of gross income through 40, then less than 5% after, she’ll build substantial assets and true flexibility ($624k at 40, leads to $4M+ at 60).
  • “She could reduce her savings rate to 4.6%. That is coast fire.” (51:42)
• Using the Financial Order of Operations and creating three tax buckets (pre-tax, Roth, taxable) gives control, tax flexibility, and resilience against life changes.

Notable Quotes & Memorable Moments

• On choosing her path:
  • Danielle: “I think I would just rather spend more time when I’m younger just not having to work as much.” (14:15)
• On burnout and balance:
  • Danielle: “I just got a little bit burnt out... I think that’s why I just kind of...was just a little tired.” (34:39)
• On the illusion of early coasting:
  • Brian: “The most powerful thing I have, which is compounding growth and the wealth multiplier, I was wrong. I wish I would have...taken a little bit of deferred gratification...” (24:00)
• On setting targets:
  • Brian: “If your monthly burn rate’s 3,000, you’re a single individual, single income coming in, I would think it’d be somewhere around that $18,000.” (11:55)
• On investing personality:
  • Brian: “Are you just hot or cold?”
  • Danielle: “Maybe a little bit. Like I said, I think I just got a little tired and I developed a lot of anxiety around it.” (32:19)
• On savings rates and compromise:
  • Brian: “What I would love is at the end of the day today is that you leave knowing you know what? There needs to be a base level. It’s more than 8%, but it doesn’t have to be hog wild 60% either.” (33:03)
• On the risk of over-optimism:
  • Brian: "Die with zero is a wonderful concept if you know when your exit is... None of us really know." (18:09)
• On powerful financial flexibility:
  • Bo: "If she can do that, just save 25% from now until 40...she could reduce her savings rate to 4.6%. That is coast fire." (51:28)

Timestamps for Key Segments

• [02:41] – Education and certification for sign language interpreting
• [05:47] – Earnings potential unique to DMV area
• [06:09] – Detailed net worth, income, and background
• [07:29] – Investment growth during COVID years
• [09:04 & 10:53] – Monthly savings goals and building emergency fund
• [13:02] – What are Danielle’s true long-term goals?
• [14:15 & 14:57] – Coast FIRE ambition and timing
• [18:09] – Uncertainty of DIE with Zero; withdrawal rate risks
• [19:37] – Future value of assets: inflation & purchasing power math
• [25:11] – Comparing Die with Zero and traditional FI projections
• [35:05] & [36:21] – Tax burden and implications of self-employment
• [37:16] – Roth vs Traditional contributions and tax optimization
• [41:07] – Sprinter’s burnout analogy
• [51:28] – The ideal savings pathway: 25% to 40, then coast

Final Action Steps & Takeaways

For Danielle (and listeners with similar aspirations):

• Don’t “coast” too early—reach the asset tipping point before scaling back savings.
• Keep savings rate higher (ideally 25%) through the “make wealth” years, then reduce to a true coast level (~5%) only when securely established.
• Max out pre-tax 401k versus Roth while in a high tax bracket.
• Build a robust emergency fund to bridge self-employment unpredictability.
• Continue scenario-testing and revisit targets as life circumstances change.

Money Guy Summary: Danielle is a disciplined, high-earning young professional with ambitious plans to buy herself flexibility and joy through Coast FIRE. But Brian and Bo’s deep dive exposes crucial timing and structural flaws in her plan—especially concerning savings rate, compounding time, tax strategy, and assumptions about future needs. With tailored recommendations, they help her recalibrate for a truly sustainable, flexible, and empowered financial life.

End of Summary