Reaching $3 million in savings by age 45 positions an individual favorably within the FIRE (Financial Independence, Retire Early) movement. This achievement may allow for a COAST FIRE approach, where one can stop aggressive saving and rely on compound interest to continue growing their wealth passively. However, the feasibility of this depends on individual retirement goals, spending expectations, and the desired retirement timeline, with varying aspirations influencing whether $3 million is sufficient for future needs.
A popular strategy among early retirees is COAST FIRE, where substantial upfront savings allow one to ease off contributions and let compound interest build wealth.
Amassing $3 million by age 45 puts you ahead of many in terms of retirement savings, allowing for potential freedom from aggressive saving.
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