Should You Quit Your Job to Travel: Maybe This Is The Answer?

Should You Quit Your Job to Travel: Maybe This Is The Answer?

Personal Finance
Does the Math Work for you?

The Answer? Coast Fire & What Exactly is Coast Fire?

I want to quit my job to travel the world, that’s not a secret. But one of my biggest fears that keeps me up at night, is my future. I know, I know, I should live for the moment, but I don’t want to be 60+ and have little or no money in my retirement accounts- So what exactly is this Coast Fire that I’m claiming could be the answer?

Let Me Explain how Coast Fire Could Help You Make The Decision To Quit your Job & Travel

I find this super interesting, especially to people around my age (Closing in on 40), but this could be a great motivator for anyone younger as well. If you’re like me, and contributed to your 401K and/or Post Tax Retirement funds for any amount of years, and have a decent amount in these accounts Coast Fire may be an option for you to quit your job & escape the rat race, and travel the world right now!

Ok, so back to Coast Fire. The concept is to have a certain amount invested in your retirement accounts right now, where even if you do not add another penny, & with the power of compounding interest you can be financially independent at retirement.

Wait, what? Ok let’s use me as an example: Let’s say my goal is to get my retirement accounts up to 200K by age 40, and I achieve this goal, Coast Fire will give me the peace of mind, that when I’m 62, I will have enough money in my accounts to live the rest of my life without worrying about money (Thanks to compounding Interest).

Of course, I will still need a way to generate income from 40 to 62, but Coast Fire gives me the ability to quit my job, escape the rate race, travel the world, and find meaningful work in the interim & hopefully with a lot less stress and hours.

Example Time!

The example below represents these values:

  • Initial Investment: 200K
  • Monthly Contribution: $0
  • Length of Time in Years: 22 (From age 40-62)
  • Est. Annual Interest Rate: 7% (Which is below the 10% S&P 10Y AVG)
Quit your JOb to Travel
Coast Fire Returns with $200K Initial Investment

Ok, so what this is telling me, is that if I have $200K invested in the S&P 500 right now, and NEVER touch it until I’m 62 I will have just over $886K in my accounts!! Wow, it just shows you the power of compounding interest.

But Wait! There’s More

The example above showed you an example of Coast Fire, without adding any additional money into any retirement accounts, but I’m sure over the next 22 years, we will find a way to generate income right? I mean we’re going to quit our job to travel, but not never work again right?

What If We Add a Small Contribution Each Month?

Let’s say, we find a way to generate income, because we’re smart, and goal-oriented, and we will find a way to generate income. Let’s say we find a way to invest just $100 a month, what happens?

The example below represents these values:

  • Initial Investment: 200K
  • Monthly Contribution: $100
  • Length of Time in Years: 22 (From age 40-62)
  • Est. Annual Interest Rate: 8.5% (Which is still below the 10% S&P 10Y AVG)
Quit your JOb to Travel
An Additional $100/Month Investment on top of our $200K Initial

Wow! See the difference? If we find a way to just contribute an extra $100 a month, our retirement “nest egg” will just be under $1.3 Million! I don’t know about you, but this gives me total peace of mind that when we quit our job & escape the rat race, we will have money to fall back on when we’re older.

Conclusion- Can I really quit my Job to Travel right now?

Coast Fire may be the answer we’re looking for to quit our jobs & travel. This path will give you a goal to strive for, and the younger you are, the easier it will be to achieve your goal (Thanks to Compounding Interest). Check out the calculator click here & plug in your own numbers.

Is Coast Fire an option for you? What are your thoughts on this potential answer and path to quitting your job to travel & escaping the rat race? Comment below, let me know what your plans are.

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