Barista FIRE
A semi-retirement approach where a smaller investment portfolio is combined with part-time work income to cover living expenses.
What is Barista FIRE?
Barista FIRE is a hybrid early retirement strategy in which an individual accumulates a portfolio smaller than required for full FIRE, then supplements investment income with part-time or seasonal work. The name originates from the idea of working as a barista — a low-stress, part-time job that often includes employer-sponsored health insurance benefits, a critical consideration for US residents who retire before Medicare eligibility at age 65. By covering a portion of expenses through earned income, Barista FIRE practitioners can leave full-time careers earlier while keeping their portfolio intact. The approach trades some leisure time for reduced portfolio requirements and continued social engagement.
Example
A 45-year-old professional with $800,000 saved cannot fully retire under the 4% rule ($32,000/year is insufficient for their expenses). Instead, they leave their high-stress career and take a 20-hour-per-week part-time role earning $25,000 annually, often with health benefits. The portfolio generates $32,000 at a 4% draw, bringing total income to $57,000 — enough to cover their lifestyle. They plan to eliminate the part-time work once Social Security and RMDs begin in their late 60s.
Source: Investopedia — Barista FIRE