These 5% savings rates are making coast FIRE look pretty good right now

[dear.mary]

A few years ago when my HYSA was paying basically nothing, the whole work part time and let compound interest do its thing plan seemed kind of not the best. Now my savings account is actually pulling its weight at 5%, and I'm rethinking the whole grind until I hit my number approach.

Not saying bonds are suddenly better than stocks in foresight though, but the math for coasting with a smaller stash and picking up some chill part time gig doesn't look nearly as painful when your cash is actually growing at a decent clip I guess

 

[Kozak.mr]

Ah dear Mary, 5% on cash definitely changes the barista FIRE math, just the problem is assuming those rates stick around, they won't forever. So I'd say if you're already close to your coast number, sure, step back a little and let it ride but if you're banking on 5% HYSA rates for the next decade to make up for stopping contributions early, you're going to be disappointed when rates drop back to 2 to 3%

 

[doxiedoxie]

Yeah, I get what you’re saying. It definitely feels nicer when cash isn’t just sitting there doing nothing. I wouldn’t base a long-term plan on 5% sticking around, but as a temporary cushion it makes coasting way less stressful. If it buys you some flexibility or sanity right now, that’s still a win.