Beth and her husband, both in their late 30s and early 40s, have $1 million invested and expect to need $100,000 per year once daycare ends in four years. They asked whether they have reached coast FIRE, the financial strategy where you stop adding to retirement accounts because existing investments will grow enough to fund retirement.
The answer is yes. Coast FIRE means you have enough in retirement accounts that you no longer need to contribute to them. With $1 million invested and assumed 8% annual returns, that money could roughly double every nine years. At their ages, the couple does not need to save for retirement anymore.
Once coast FIRE is reached, the gap between income and expenses no longer has to go into retirement accounts. That extra money can fund short-term reserves or allow one spouse to cut back hours now while the kids are young. Beth's husband works in tech and experiences burnout. Beth is an accountant who wants more flexibility and lower stress. Both seek part-time work with health insurance, which they identify as a major challenge in their fields.
Finding part-time jobs with benefits is easier in small businesses. Below roughly 25 employees, bureaucracy fades and you get a direct line to the decision-maker. Look for W-2 roles with reduced hours, contract work with a small business, or a handful of contract clients cobbled together.
On college financial aid, the CSS Profile matters more than lowering 1099 income. Many Ivy League schools cover some or all tuition for families earning under roughly $200,000 to $250,000 if assets match that income level.
For renters considering homeownership, price-to-rent ratios offer guidance. Divide a home's purchase price by its annual rent. Under 15 is a slam-dunk buy; over 25 is a slam-dunk rent; 15 to 25 is a gray zone. In Manhattan, the ratio is over 25, so renting makes sense there while owning in regions where the math pencils out.