Financial Clarity Coaching Blog,  Investing In Retirement

BaristaFI/RE…FI/RE Strategies Part 4

In our continuing mini-series, today we’re discussing the next financial independence strategy called “BaristaFI/RE”.

Here’s what you need to know…

BaristaFI/RE is simply a strategy of the FIRE movement where you’ve “retired early” from your primary career to work in a part time job for supplemental income and health insurance. Essentially, you’ve built a significant amount of money in after-tax investments in order to generate passive income to pair with the income from part time work.

What makes BaristaFI/RE popular in the FI community…

Is the desire to possibly leave a high demand, high stress, long hours career for something simple or more enjoyable on a part time basis. Ideally most who pursue this strategy…

1. Are at least 40 years of age, which is the general recommendation.
2. Have at least 1 million (or more) saved in after tax investments that generate passive income between $30k-$40k.
3. A Married couple where one works fulltime and the other part time.
4. Couples who don’t have kids.
5. Individuals who wish to pursue going into business for themselves.

BaristaFI/RE is also commonly known as “CoastFI/RE”. Both operate the same and are intended to help you “coast” through early ‘retirement’ from your primary career until you land at age 59 1/2 to withdraw from retirement without penalty.

But how did it get the name “Barista”?

Yep, just as you thought, by working part-time as a barista at a coffee shop, Mostly due to Starbucks offering part time employees health insurance. But Barista could mean any kind of job on a part time basis. Maybe even your primary career, but instead of fulltime hours, you only work part time. The one thing every FIRE strategy has in common is the struggle with healthcare costs and coverages. BaristaFIRE helps cover this concern, which makes it’s a very enticing Avenue to pursue.

How does BaristaFIRE (CoastFIRE). sound to you?

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