Barista-Coast FIRE: How We Plan to Semi-Retire in 10 Years

Barista-Coast FIRE is the strategy we’re using to semi-retire in 10 years while still reaching full financial independence later in life.

After exploring different paths to financial independence, this approach turned out to be the most realistic and family-friendly fit for us. We haven’t worked full-time in our corporate jobs since starting our FIRE journey — and along the way, we’ve welcomed our three little girls.

In this article, I’ll show the real numbers behind our plan, our withdrawal strategy, and how we’re approaching semi-retirement while raising three young kids, year by year.

What Barista-Coast FIRE Is All About

Barista-Coast FIRE combines two well-known FIRE ideas: Coast FIRE and Barista FIRE.

Together they create a strategy where you reduce your working hours once your portfolio reaches a certain size, while still allowing your long-term investments to compound toward full financial independence.

The key idea is simple: one portfolio grows for the future and traditional retirement, while the other supports semi-retirement today.

You do this by splitting your investments into two parts:

• a Coast FIRE portfolio
• a Barista FIRE portfolio

First, you save and invest until you reach your Coast FIRE number. This portfolio is then left untouched so it can compound over the next 20–30 years and fund traditional retirement.

Then you build a Barista FIRE portfolio, which acts as a temporary bridge between semi-retirement and full retirement.

Once the Barista portfolio is fully funded, you can enter semi-retirement, reduce your working hours, and begin withdrawing income from that portfolio. In some cases, the Barista portfolio may even be gradually drawn down until traditional retirement begins.

One important advantage of this approach is that your long-term portfolio remains protected from withdrawals, allowing compounding to continue working in the background, so that you’re not sacrificing long-term financial independence.

Barista-Coast FIRE also has another even more niche strategy that relies only on partial draw-downs. In this full guide, I break down all 13 types of FIRE — including both Barista-Coast FIRE approaches.

The Coast FIRE Portfolio

Coast FIRE means building an investment portfolio large enough that — even if you stopped contributing new money — it could continue growing through compound interest and eventually reach full financial independence (FI) by the time traditional retirement begins.

Of course, you’ll need to continue monitoring your progress and adjusting your FI number if your circumstances change. If needed, you may also resume investing in that portfolio.

Our Coast FIRE Number and Withdrawal Plan

Key Numbers Behind Our Coast FIRE Plan

• Current Coast FIRE portfolio: 126,000
• Projected Coast FIRE portfolio at retirement (age 67): ~760,000
• Time horizon: 26 years of compound growth (age 41 → 67)
• Assumed average annual return: 10%
• Assumed long-term inflation: 2.5%
• Safe withdrawal rate (SAFEMAX): 4.7%
• Estimated passive income from portfolio:
  • ~€36,000 per year
  • ~€3,000 per month (before taxes, so the net amount will be lower)
• Estimated state pension at age 67: ~3,020 per month
• Estimated monthly retirement expenses: ~6,000

This combination of portfolio withdrawals and state pension would already cover most of our expected retirement expenses.

The Coast FIRE Plan in Detail

In our case, the Coast FIRE portfolio is as low as 126,000 at this moment (which is actually less than what we already have invested today).

With 26 years of compound growth until the official retirement age of 67, that portfolio could grow to around 760,000, assuming an average annual return of 10% and long-term inflation of 2.5%.

According to the 4% rule, or the updated 4.7% “SAFEMAX” rule (see below), this portfolio could provide roughly 36,000 per year in passive income (almost 3,000 per month before taxes) for about 20–30 years of retirement.

The idea behind the 4% rule is that withdrawing around 4% of your portfolio annually makes it very likely that your investments will last for roughly 30 years of retirement.

The rule was originally developed by William P. Bengen (Bill Bengen) in the early 1990s and later supported by the Trinity Study in 1998. In recent years, Bengen himself suggested that under current market conditions the safe withdrawal rate could be 4.7%, referred to as the “SAFEMAX” rule.

The Barista FIRE Portfolio

The Barista FIRE portfolio serves a different purpose.

Barista FIRE means earning a smaller income through flexible or part-time work while supplementing it with withdrawals from your investments.

The size of the Barista FIRE portfolio depends entirely on how much passive income you need during semi-retirement.

The beauty of this strategy is that you can use a higher withdrawal rate, as the portfolio only needs to last for about 20–25 years between semi-retirement in your 40s and traditional retirement in your 60s.

Conversely, a higher withdrawal rate means that a smaller portfolio is required to generate the same income, which can make semi-retirement achievable much earlier.

Once you reach traditional retirement age, you would then begin relying on your Coast FIRE portfolio.

Our Barista FIRE Number and Withdrawal Plan

About Our Barista FIRE Plan

We modeled two different Barista-Coast FIRE scenarios that we currently consider for our Barista FIRE phase.

One would allow us to reach semi-retirement in a total of 10 years. Since we’re already six years into our financial independence journey, that means we would have only four more years to go.

The second scenario would delay our semi-retirement timeline by about three years, but it could add an element that might be very attractive for our family. Ultimately, we’ll decide which path feels right when we get closer to that point in about four years.

Key Numbers Behind Our Barista FIRE Plan

• Our Barista portfolio today: 36,000
• Monthly investment (on average): 2,800
• Monthly expense today: 6,400
• Monthly income (on average): 9,200
• Expected Barista income: 4,800

Our current Barista portfolio will continue growing over the next few years at an average monthly investment rate of about 2,800. Some months we invest very little, while in others we invest several thousands.

Our monthly expenses currently average around 6,400, although we expect them to change and likely increase as our children grow older.

Our average monthly household income is about 9,200, but it fluctuates quite a bit. Some months we earn around 6,500, while others exceed 10,000, depending on bonuses, tax refunds, and employment benefits.

During semi-retirement, we estimate our Barista income at around 4,800 per month, potentially increasing to 5,200. This includes 800 in state benefits, while Marc and I each expect to earn 2,000–2,200 per month through flexible work.

That would leave an income gap of roughly 1,200–1,600 per month, which we plan to cover through withdrawals from our Barista portfolio.

Of course, these numbers will likely change by the time we actually reach Semi-FI, but they give us a realistic framework for planning our transition into semi-retirement.

Barista FIRE Scenario 1: Larger Barista Portfolio (More Conservative)

This scenario is the more conservative option. In this case, we would reach semi-retirement at age 48 with a much larger Barista FIRE portfolio, resulting in a more sustainable withdrawal rate and slower portfolio drawdown. Compared to the other scenario, withdrawals are relatively low. This allows the portfolio to continue growing while still providing income during semi-retirement.

Key numbers during Barista FIRE:

• Barista portfolio at semi-retirement start: 336,000
• Average withdrawal rate during the Barista phase: ~2.5%
• Initial withdrawal rate: ~4.7% (about 16,000 annual passive income, or 1,300 per month before taxes)
• Barista portfolio at semi-retirement end: 786,000

Key numbers after Barista FIRE ends:

• Traditional retirement target (Coast portfolio): 760,000
• Projected total portfolio at retirement: 760,000 (Coast) + 786,000 (remaining Barista) = 1.55M
• Annual passive income at retirement (4.7%): 72,850
• Monthly passive income at retirement: 6,070

The goal here is to reach Semi-FI in a sustainable way, balancing withdrawals and timeline while maximizing the wealth accumulated for traditional retirement.

Barista FIRE Scenario 2: Smaller Barista Portfolio (Higher Drawdown)

This scenario relies on much higher withdrawals, which means most of the Barista portfolio would be consumed before traditional retirement begins. In this case, we would reach semi-retirement at age 45 with a smaller Barista FIRE portfolio that we would gradually draw down almost completely. This results in faster portfolio consumption and higher withdrawal rates.

Overall, this is a strategy I personally would not recommend for most people, as it carries a higher risk of early portfolio depletion and requires careful monitoring and ongoing adjustments.

Key numbers during Barista FIRE:

• Barista portfolio at semi-retirement start: 180,000
• Average withdrawal rate during the Barista phase: ~9.3%
• Initial withdrawal rate: ~11.7% (about 21,000 annual passive income, or 1,750 per month before taxes)
• Barista portfolio at semi-retirement end: 98,000

Key numbers after Barista FIRE ends:

• Traditional retirement target (Coast portfolio): 760,000
• Projected total portfolio at retirement: 760,000 (Coast) + 98,000 (remaining Barista) = 860,000
• Annual passive income at retirement (4.7%): 40,420
• Monthly passive income at retirement: 3,368

The goal here would be to reach Semi-FI as soon as possible and maximize time freedom earlier in life.

Comparing both Barista FIRE Scenarios

This contrast clearly shows the trade-off between retiring earlier and building long-term wealth — and how much of a difference just three more years can make.

However, the combination of portfolio withdrawals (~3,368 or ~6,070) and state pension (~3,020 per month) would already cover all of our expected retirement expenses, and eventually exceed them.

Barista-Coast FIRE: Our Exact 10-Year Plan — Year by Year

Lastly, I want to walk you through our 10-year plan — year by year, with six years already behind us.

A few details before we dive in: we’re about to turn 41 this summer, and could enter the Barista phase as early as age 45, which gives us just four more years to reach our semi-retirement goal as outlined above.

This is our current plan, knowing that we’ll happily adjust it if our priorities or circumstances change. But as of now, this is our status quo:

Year 1 (2020): Going All In

This was the year we started and were fully committed to our FIRE journey. We focused on working, saving, and investing as much as possible while raising our first baby girl. Although both Marc and I were technically working part-time, our overall workload felt close to full-time. This year laid the foundation for everything that followed.

Year 2 (2021): Staying the Course

In the second year, we essentially repeated our strategy: high savings rate and consistent investing. With one child and a clear goal in mind, we were able to maintain strong momentum and continue building our portfolio.

Year 3 (2022): Growth and Transition

This year looked similar on the financial side, but life changed significantly as we welcomed our second baby girl in December.

Year 4 (2023): Slowing Down Financially

During this year, I stepped away from my corporate job to enter parental leave — going all-in on the blog — and we became a one-income family, partly supported by parental allowance. Despite the reduced income, we continued to save and invest wherever possible, even though progress naturally slowed.

Year 5 (2024): Continuing Through Constraints

This year followed a similar pattern. With limited income, we focused on maintaining our financial habits rather than maximizing them. Even small contributions mattered, and consistency remained key.

Year 6 (2025): Another Family Shift

In 2025, I returned to part-time work for a few months before entering parental leave again after welcoming our third baby girl. Once again, we became a one-income household with a small parental allowance. This phase reinforced our belief that FIRE with kids requires flexibility and adaptation.

Year 7 (2026): Returning to Work

In the current year, I plan to return to part-time work, while balancing family life and continuing to grow this blog. The focus will be on regaining momentum and increasing our investment contributions again.

Year 8 (2027): Increasing Capacity

By this point, we expect to move toward near full-time work (still officially part-time). This will allow us to intentionally save and invest at a higher level again.

Year 9 (2028): Building Momentum

This year will be about consistency and execution. With higher income and a stable setup, we aim to continue investing strategically and moving closer to our semi-retirement target.

Year 10 (2029): Final Stretch

In the final year of our plan, we expect to stay the course and prepare for the transition into semi-retirement. By then, we should have a clear picture of whether we’re ready — financially and emotionally — to make the shift.

What Comes Next (2030): Entering Semi-Retirement?

If everything goes according to plan, we aim to enter semi-retirement in 2030. However, this decision will ultimately depend on where we stand financially and how we feel about our situation at that point.

Frequently Asked Questions About Barista-Coast FIRE

Do I need to work full-time until the Barista FIRE phase?

No. In our case, we haven’t worked full-time in our corporate jobs since starting our FIRE journey. However, if we include the time we spend on this blog, our total working hours likely exceed a traditional full-time job. Yet it doesn’t feel that way because it’s a passion project we enjoy.

What is a good age to semi retire using Barista-Coast FIRE?

There is no universal answer to what is a good age to semi retire, as it depends on your savings, investments, and lifestyle. However, for many families, semi-retirement becomes realistic once investments can cover a part of their expenses. In our case, that age range is between 45 and 50.

How much do you need for Barista FIRE?

The amount depends on how much income you want your investments to provide. A common rule of thumb is to cover at least 20% of your expenses through withdrawals, while the rest is supported by part-time or flexible income.

What happens after the Barista FIRE phase?

After the Barista phase, your Coast FIRE portfolio should have grown enough to support traditional retirement. At that point, you can transition fully into financial independence without relying on work income.

Is Barista-Coast FIRE risky?

Barista-Coast FIRE can be less risky than traditional early retirement because your long-term portfolio continues compounding. However, higher withdrawal rates during the Barista phase can increase the risk of early portfolio depletion of your Barista bucket and require ongoing monitoring.

Want to explore your own path to financial independence today? Start here with our “Financial Freedom Pathfinder” to compare different Semi-FI paths side by side. And to track your actual progress year by year — income, portfolio growth, debt paydown, net worth — try our free Financial Ledger.