Marriage Kids and Money: Personal Finance for Families

Why Coast FIRE is Irrational | Sam Dogen (Financial Samurai)

Jul 15, 2024

Sam Dogen, founder of Financial Samurai and author of the bestselling book 'Buy This, Not That,' dives into the complexities of Coast FIRE. He discusses how this strategy allows more freedom today but cautions about its potential pitfalls, especially with inflation and unexpected expenses. The conversation also touches on realistic investment growth expectations and the importance of educating children about finance for true generational wealth. Dogen emphasizes a balanced approach to personal finance, advocating for stability over high-risk ventures.

35:11

Episode guests

Sam Dogen

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

While Coast FIRE offers appealing flexibility, it can lead to complacency and inadequate financial preparation for future life changes.

Generational wealth should focus on education and financial independence for children, rather than merely providing large inheritances that may foster dependency.

Deep dives

The Risks of Coast Fire

The Coast Fire concept, while appealing, is viewed as a potentially dangerous early retirement strategy. It encourages individuals to remain complacent with their financial goals, assuming that a set amount will be sufficient for their future needs. This complacency often leads to insufficient savings and inadequate preparation for the inevitable expenses that come with life changes, such as raising children or handling rising costs. Staying overly relaxed about finances can create a false sense of security, ultimately jeopardizing long-term financial health.

Intro

2min

Reassessing Coast FIRE: Risks and Realities

5min

Rethinking Investment Growth Expectations

2min

Navigating Retirement Pitfalls

7min

The Balance of Generational Wealth

8min

Navigating Personal Finance

8min

I love the concept of Coast FIRE. It allows you to free up more money to enjoy life now instead of retirement.

But … just because I think Coast FIRE is great, doesn’t mean everyone does.

To help us get another perspective on this Coast FIRE concept and what could go wrong with it, I’ve invited Sam Dogen back on the show today.

GUEST BIO - Sam Dogen:

Sam is the founder of Financial Samurai, a personal finance website focused on slicing through money's mysteries. He has been featured in major publications including The Wall Street Journal, The Sydney Herald, The Chicago Tribune and The L.A. Times.

Sam is also the author of the Wall Street Journal bestselling book “Buy This, Not That: How to Spend Your Way to Wealth and Financial Freedom”.

When he’s not writing about financial independence, Sam loves spending time with his wife and two kids and playing pickleball and tennis in San Francisco.

EPISODE RESOURCES:

MKM RESOURCES:

MKM Coaching: Want 1-on-1 support with your family finance journey? Book a time with me today.
Make My Kid a Millionaire Course: Want to build generational wealth and happiness for your kid? Learn more about my course!
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SHOW INFORMATION:

Marriage Kids and Money is dedicated to helping young families build wealth and happiness. This award-winning platform helps couples and parents achieve financial independence and discover the true meaning of wealth.

To achieve these big goals, we answer questions and interview experts who uncover smart net worth building habits and tools that can help everyone find their own version of financial independence.

Learn more at https://www.marriagekidsandmoney.com

HOST BIO:

Andy Hill, AFC® is the award-winning family finance coach behind Marriage Kids and Money - a platform dedicated to helping young families build wealth and happiness.

Andy's advice and personal finance experience have been featured in major media outlets like CNBC, Forbes, MarketWatch, Kiplinger’s Personal Finance and NBC News. With millions of downloads and views, Andy’s message of family financial empowerment has resonated with listeners, readers and viewers across the world.

When he's not "talking money", Andy enjoys being a soccer Dad, singing karaoke with his wife and relaxing in his hammock.

HOW WE MAKE MONEY + DISCLAIMER:

This show may contain affiliate links or links from our advertisers where we earn a commission, direct payment or products.
Opinions are the creators alone.
Information shared on this podcast is for entertainment purposes only and should not be considered as professional advice.
Marriage Kids and Money (www.marriagekidsandmoney.com) is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

CREDITS:

Podcast Artwork: Liz Theresa
Editor: Podcast Doctors
Podcast Support: Nev Maraj

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