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Posted On: 01/21/2024 7:25:25 AM
Post# of 27263
Semi-retirement
Someone could theoretically “coast” all the way to their retirement, but if you continue to contribute to retirement accounts and live below your means, you may find yourself with the ability to live in semi-retirement — a state some FIRE adherents have nicknamed “Barista FI.”
At this stage, you can work less, or accept lower-paying work you find enjoyable — say, making cappuccinos at your favorite local cafe — while supplementing your living expenses with withdrawals from your investment accounts.
“You might withdraw 1% or 2%, but you’re still covering the rest with active income,” says Jessica. “And even with the withdrawing, your investments will still grow to provide you with the traditional retirement number that you’ll need at a later point in time.”
Someone could theoretically “coast” all the way to their retirement, but if you continue to contribute to retirement accounts and live below your means, you may find yourself with the ability to live in semi-retirement — a state some FIRE adherents have nicknamed “Barista FI.”
At this stage, you can work less, or accept lower-paying work you find enjoyable — say, making cappuccinos at your favorite local cafe — while supplementing your living expenses with withdrawals from your investment accounts.
“You might withdraw 1% or 2%, but you’re still covering the rest with active income,” says Jessica. “And even with the withdrawing, your investments will still grow to provide you with the traditional retirement number that you’ll need at a later point in time.”
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