If you approach 1 mEUR in portfolio assets, or as you say if you are talking about reaching multimillion level, so the assets will on average produce income of one or several hundreds or thousands of Euro per year. This is much more, than I can imagine is needed for consumption, or I simply do not have enough of imagination 😄. Then it means you've accumulated generational wealth, which you will pass for coming generations.
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@value_seeker_2140
I get your point about generational wealth, but for me the timing matters more than the final number. If I just wait passively, I might have 2 million in 10–12 years and maybe 4 million by the time I’m 60 — but by then a lot of life will already have happened. I might not be as fit, and suddenly having a huge pile of money doesn’t help me catch up on experiences I postponed.
That’s actually why I’ve been working through this: my wife and I have lived on about €3,000/month for years, now closer to €4,000 with our child — and that’s not extravagant, except for travel. I’ve done all the work on our houses myself. At some point I’d like the luxury of hiring tradespeople instead, which quickly pushes the number to €5,000–7,000/month.
Before we became parents, with two full-time incomes we usually earned at least €6,000/month, often significantly more. Now, having chosen to spend time with our kids, we’re sharing a single full-time position between us. And as long as our kids are under 10 and not yet in school full-time, we’ll most likely keep working part-time. That’s exactly why it makes even more sense for us to start with small withdrawals early on — to maintain the level and the life we want for our family during these years.
The way I see it, the plan has two phases: smaller withdrawals now, on top of part-time income, to bridge this family-focused period — and then, from around age 60 onward, the portfolio itself should be able to cover that full €6,000/month, inflation-adjusted, without relying on income from work anymore.
So my target isn’t “as much as possible eventually” — it’s reaching a point where I can reliably draw around €6,000/month, inflation-adjusted, indefinitely. That’s the level where I’d actually feel free, rather than just accumulated.
I get your point about generational wealth, but for me the timing matters more than the final number. If I just wait passively, I might have 2 million in 10–12 years and maybe 4 million by the time I’m 60 — but by then a lot of life will already have happened. I might not be as fit, and suddenly having a huge pile of money doesn’t help me catch up on experiences I postponed.
That’s actually why I’ve been working through this: my wife and I have lived on about €3,000/month for years, now closer to €4,000 with our child — and that’s not extravagant, except for travel. I’ve done all the work on our houses myself. At some point I’d like the luxury of hiring tradespeople instead, which quickly pushes the number to €5,000–7,000/month.
Before we became parents, with two full-time incomes we usually earned at least €6,000/month, often significantly more. Now, having chosen to spend time with our kids, we’re sharing a single full-time position between us. And as long as our kids are under 10 and not yet in school full-time, we’ll most likely keep working part-time. That’s exactly why it makes even more sense for us to start with small withdrawals early on — to maintain the level and the life we want for our family during these years.
The way I see it, the plan has two phases: smaller withdrawals now, on top of part-time income, to bridge this family-focused period — and then, from around age 60 onward, the portfolio itself should be able to cover that full €6,000/month, inflation-adjusted, without relying on income from work anymore.
So my target isn’t “as much as possible eventually” — it’s reaching a point where I can reliably draw around €6,000/month, inflation-adjusted, indefinitely. That’s the level where I’d actually feel free, rather than just accumulated.
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•@Wealth-Accelerator Living in the Baltics, I may be a bad advisor of the income levels one should use for living in Germany, but yes, the levels you are mentioning in your post sounds reasonable. Parenting is an extra challenge to your budget both on income and on cost side, so in such situations it may be wise to postpone wealth accumulation a while and even take some small sums out of the saved amount in order not to fall too low with the income.
But the choice to spend time at home is great. Every successful family spends time with their children, while they are small. The time one is spending with your children is essential for their later lives.
The wish to draw reliably around €6,000/month, means you should accumulate €1.8 m by the time you are 60 years old (€6,000x12/0.04 = €1.8 m).
I don’t say it is impossible, but it may be challenging, given the required savings rate. But your income will increase later in life, and one of you may start a business, which will help you a lot with the accumulation of wealth in later stage.
But the choice to spend time at home is great. Every successful family spends time with their children, while they are small. The time one is spending with your children is essential for their later lives.
The wish to draw reliably around €6,000/month, means you should accumulate €1.8 m by the time you are 60 years old (€6,000x12/0.04 = €1.8 m).
I don’t say it is impossible, but it may be challenging, given the required savings rate. But your income will increase later in life, and one of you may start a business, which will help you a lot with the accumulation of wealth in later stage.
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•@value_seeker_2140 thanks for your words! Seeing my kid growing and having time with it feels really Great! But I am still pretty confident to reach the mentioned amount within 26 years! What will be interesting: If I will be able to reach a Level where the amount is as high as Inflation rate was.
Let‘s see. But I am Not stressing my Self anymore with it.
Let‘s see. But I am Not stressing my Self anymore with it.
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