Her retirement account hit $300,000 when she was 31 — she says she'll never add another dime. Is this a smart plan?

At age 31, Jessica Fick discovered she and her husband had saved a sum of $300,000. Together, they decided to quit their jobs and have not contributed any more money to their investments since 2023. This strategy, known as Coast Fi, is based on the belief that their retirement account will grow enough over time to sustain them in retirement without requiring additional contributions.

The formula for reaching this goal is to divide the desired retirement savings target by the compound growth rate of their investment portfolio. While proponents of Coast Fi argue that compound interest will take care of the growth, financial experts caution that it doesn't account for economic and personal circumstances like inflation, market volatility, and unexpected expenses.

They warn that while Coast Fi can provide financial freedom, it is not without potential pitfalls and requires careful planning and adjustments as life circumstances change.