Saving for retirement is the coolest thing you can do — but here’s 3 ideas for making it feel that way to more people than just me.
Hitting your CoastFIRE number makes for one of the coolest milestones on your path to FIRE. Your CoastFIRE number is the amount of money you need invested to stop investing any further money and still hit your goal retirement number.
For example, if you want $50,000/year in retirement starting at age 67, then you need ~25 times that in your retirement account — or $1.25M. While that may sound like an impossible goal, this goal is actually significantly easier the earlier you hit it — making it perhaps your most important financial goal.
With a 7% annual return on your investments , a 60-year old can stop contributing to their retirement accounts at ~$767,000, a 50-year old can stop at ~$381,500, a 30-year old can stop at ~$94,500, and a 25-year old can stop at just ~$66,500. Compute your number with this calculator 📈.
Depending on your age, this goal could be quite easy or quite daunting — although $50,000 + Social Security goes a long way with a paid off house — so you can definitely retire comfortably on much less. Either way, the next goal should give you motivation along the way to this one.
Retiring abroad can be significantly cheaper, providing for some pretty cool goals before you’re able to coast to retirement in the good ol’ US of A.
Based on purchasing power parity , retiring in the digital nomad favorite of Vietnam could require just ~1/9th what it takes to retire in the USA.
Given the same conditions in the previous goal, A 60-year old wanting to retire in Vietnam with the equivalent purchasing power to ~$63,000 in America can stop contributing to their retirement accounts at just $107,000. The 25-year old? Just $9,300.
What countries could you picture yourself retiring in? Pick out a few countries from this list (I’m looking at you Italy) and set yourself some nice milestones. Once again, adjust your numbers with this calculator.
Arguably buying individual stocks may be more risky than you need to fool with. However, for those that can’t resist this goal can be pretty cool. And even if you’re not an individual stock type — opting for the S&P500 index instead, you can still think of this goal as America 🇺🇸 buying you stuff.
Some stocks, ETFs and mutual funds literally pay you to hold onto them in the form of dividends. For those that do, it’s cool to think of it like they are giving you money to buy their products. Even if they don't, every stock reports an earnings-per-share (or EPS), and you can use that instead.
For example, at the time of this writing owning one McDonalds stock (MCD) will pay you $5.00 annually. So with just ~$200 invested you can check off a goal of McDonald’s giving you a free Big Mac every year. Starbucks (SBUX) and a free coffee? 3 shares or ~$240.
Of course some goals are harder than others. Apple (AAPL) and free wheels for the Mac Pro ($700!)? 228 shares or ~$74,100.
With a ~2% dividend yield, S&P500 indexers can calculate what it takes for America 🇺🇸 to buy you those things. So America will buy you either the Big Mac or the coffee with ~$250 invested or both with ~$500.
What things would you like to imagine companies are giving you the money to buy? Disney (DIS) and park tickets? Microsoft (MSFT) and an Xbox? Nike (NKE) and a pair of shoes? America and your water bill? I’ve found these goals very fun in addition to the other 2 goals.