Coast FIRE w/ $600k at 42 | Nina from Michigan

Summary

Nina Robinson, who reached the CoastFire milestone in her late 30s, shares her inspiring journey toward financial independence. By starting her 401k early and following a disciplined savings strategy, Nina has accumulated over $600,000 for retirement, setting her up for a comfortable future. In this interview, she explains her strategy, the importance of planning for the future, and how the CoastFire realization has brought her peace of mind. Nina's approach involves maximizing contributions, sticking to the 50/30/20 rule, and balancing life enjoyment with long-term financial goals. She encourages others to start investing early to achieve financial freedom.

Takeaways

• 😀 Nina Robinson achieved the Coastfire milestone by investing over $600,000 for retirement, aiming for financial independence in her 40s.
• 😀 The Coastfire concept allows individuals to stop contributing to retirement savings once they reach a certain amount, relying on compound interest to reach retirement goals.
• 😀 Nina started investing in her early 20s with a 401(k) and company match, following the advice of her parents who were both committed to long-term retirement savings.
• 😀 Nina's parents influenced her investing habits: her mom retired early as a teacher in her 50s, and her dad worked long into his career as an attorney.
• 😀 At age 42, Nina expects to have $1.4 million by retirement, with an annual income of $48,000, which is the same amount she currently needs to live comfortably.
• 😀 Nina follows the 50/30/20 rule for budgeting: 50% for needs, 30% for wants, and 20% for savings. She flipped the percentages over time to accelerate her savings.
• 😀 By consistently saving 30% for savings and 20% for wants, Nina has been able to decrease her work years and potentially retire earlier than planned.
• 😀 80% of Nina’s retirement savings are in her 401(k), while the remaining 20% is invested in a Roth IRA to take advantage of tax benefits.
• 😀 Nina has kept her investing process simple by using target date funds for her 401(k), allowing her retirement investments to adjust automatically based on her desired retirement date.
• 😀 With $1.4 million projected in retirement, Nina plans to continue maximizing her 401(k) and Roth IRA contributions, aiming for a retirement portfolio that could exceed $2 million if she sticks to her plan.
• 😀 Nina encourages others, especially those in their 20s, to start early by taking advantage of employer 401(k) matches, which is a small but significant step toward financial independence.

Q & A

What is CoastFire?

CoastFire refers to a financial milestone where an individual has invested enough for retirement that, with time and compound interest, they no longer need to contribute further to meet their retirement goals.

What was Nina Robinson's investment portfolio when she achieved CoastFire?

Nina Robinson currently has over $600,000 invested for retirement.

How much will Nina have in retirement if she doesn't contribute any more money?

Nina's investments will amount to approximately $1.4 million by retirement, without any further contributions.

What was Nina's annual income target for retirement?

Nina's goal is to have an annual income of $48,000 in retirement, which aligns with her current living expenses.

How did Nina start investing for retirement?

Nina started investing in her early 20s, taking advantage of her employer's 401(k) plan, which included a company match. Her parents were influential in encouraging her to invest early.

What is the 50/30/20 rule Nina follows for budgeting?

The 50/30/20 rule divides income into three categories: 50% for needs (housing, utilities, etc.), 30% for wants (travel, luxury purchases), and 20% for savings. Nina has adjusted the percentages to save more and spend less on wants.

How did Nina simplify the investment process?

Nina simplified her investment process by selecting a target date fund for her 401(k), which automatically adjusts the investments as she approaches retirement age.

What does CoastFire mean to Nina in terms of future planning?

CoastFire gives Nina peace of mind, knowing that she has already secured her retirement future. She can now focus on enjoying life while continuing to build wealth, with the option to retire earlier or with a larger nest egg.

What is Nina's long-term retirement target?

Nina's target retirement age is 65, but she is open to the possibility of retiring as early as 59 or 60, depending on her progress and the growth of her investments.

How can people in their 20s start their retirement journey?

Nina recommends that people in their 20s maximize their 401(k) contributions through their employer. It's a simple step that can significantly impact future financial security.