1Año·

Guys, it's done!

I'm in six figures at the age of 30. Today, for the first time, the 100.000€ was displayed in the Trade Republic custody account for the first time.

Without any further incoming payments, I'll reach the million mark by the time I'm 60 if I earn 8% p.a.. can be brought in. This means that from now on, my primary task is no longer to continue to save strictly or to earn some pittance through overtime, but rather not to mess it up and actually make the 8%.

Only 1% deviation from the target return corresponds to a sum of €250,000 over this investment horizon, for which I would either have to work 10 years longer or wait 5 years longer for compound interest. So from now on I am already in the diminishing marginal utility of my gainful employment. Or as John D. Rockefeller put it: "Better to spend an hour thinking about money than an hour working for money"

It will remain important never to lose money (cf. Buffet) and never to make withdrawals from deposits, i.e. to be cash flow positive. However, I could also invest my future savings installments in a property or something similar.

Nevertheless, I will continue to transfer as much net income as possible to the custody account each month and gradually invest the cash in shares. I'm not counting on an inheritance.

My next interim goals are

170,000€ at the age of 35

250,000€ at the age of 40

500,000€ at the age of 50

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77 Comentarios

Harald@Madhatter5566

1Año

With the amount of cash, one half of the money has to work much harder 😅

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Soprano@Soprano

1Año

@Madhatter5566 That's right, as the cash position only pays 4% interest, the portfolio should generate a return of around 10% this year. However, I am currently reducing the cash at an accelerated rate and have already invested €7,000 in 2024.

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Nebenbeitrading@Nebenbeitrading

1Año

Congratulations, I like that. I also reached the milestone at 30. It took me around 12 years in my professional life. However, I would reconsider the attitude of focusing less on the savings rate. It only took me 3 years to reach the second €100,000. Reaching the million at 60 with performance alone is nice, but you can do it much faster with additional deposits 💪🏻 keep going

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Soprano@Soprano

1Año

@Nebenbeitrading Thank you. Well, I didn't say I wanted to stop saving, I just said that I COULD. For now, I'll carry on as before.

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Floriano@FlorianoPerlini

1Año

@Nebenbeitrading Had 100k full in July 2023. Hope to reach 200k by the end of 2025 🚀

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TheGuardian@TheGuardian

1Año

Optimism aside, one has to still take into account tax (capital gains), inflation over the next 30 years and see if that is „today’s“ one million when time comes. Message is don‘t relax 👍🏼

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Soprano@Soprano

1Año

@jaykaymunich Yeah, that's actually true. There is inflation and taxes. However I currently only plan to become millonaire to retire at my terms not to actually reach a certain millionaires lifestyle. I am happy if I actually own my own lifetime (not selling it to a employer) and being able to leave more to my future children than I had when I was their age.

I neither feel the desire to die being a millionaire nor to afford any other luxuries than I afford today.

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TheGuardian@TheGuardian

1Año

@Soprano Absolutely, Being on own terms and if that is achievable with or without potential 8% gross a year (on today’s rate), I toast for you.

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Gerit@Gerit

1Año

Glückwunsch! 🥂🍾

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Soprano@Soprano

1Año

@Gerit Danke!

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PietAT@Petzi-Port

1Año

Have you ever thought about simply putting half of the 40k into an ETF?

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Soprano@Soprano

1Año

@Petzi-Port Yes, but I'm absolutely not convinced. Firstly, I enjoy individual shares more and secondly, I don't see any advantages in them. What's the point?

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Harald@Madhatter5566

1Año

@Soprano Msci World actually yields more than 4 percent. So it brings you more than interest. If it sails, then the individual stocks will sail too

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PietAT@Petzi-Port

1Año

@Madhatter5566 more than 4% return in principle, you can continue to invest in individual stocks as well

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Yannick@einyannick

1Año

far too much cash. 60k must be more than 10%, especially since the 4% on the 40k is no longer paid for the whole year.

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Soprano@Soprano

1Año

@einyannick Then, logically, I will also have less cash 🤓

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Yannick@einyannick

1Año

@Soprano But if the money is invested for the long term, I don't understand the cash strategy at all. Historically, shares always make more.
But if the cash serves as a nest egg, then it's ok :)

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Soprano@Soprano

1Año

@einyannick But it is specifically a short-term investment

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Reppi@Reppi

1Año

I'll be happy if I have 15-20k invested by the time I'm 30, without a nest egg. 😂
Congratulations

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Soprano@Soprano

1Año

@Reppi Thank you! I'm sure there's still room for improvement. Have you ever looked to see if you have any monthly costs that you can get rid of? In my case, at least, it was low key costs and not a high income.

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Reppi@Reppi

1Año

@Soprano I've actually already cut back quite a bit to keep the fixed costs low.
I'd like to save on the GEZ, but unfortunately that's not what I want 😂😂😂

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Soprano@Soprano

1Año

@Reppi That would actually be an extremely sensible cost reduction, I'm right there with you.

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Joris@Joris

1Año

Congratulations. Beautiful execution.

What are you investing the 40k in?
How long did you need for the 100k and at what savings rate?
I'm 35 and unfortunately have "only" 27k (call money and deposit together) and have a savings rate of € 2200 (€ 1100 deposit and € 1100 call money). The daily allowance was a compromise with my wife 😅 I hope to have 100k in total assets in 2 years.
Is it even possible to calculate like this, i.e. overnight money and custody account together? Compound interest is only in the custody account, but it's still my total assets. Worth considering.
Best regards

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giraffinvesting@giraffidae

1Año

@Joris Strange compromise. Why?
Is the call money at least at a high interest rate or at 0% at the local savings bank?

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Joris@Joris

1Año

@giraffidae My wife likes security and learned from her father that shares are stupid. Savings accounts are safe. Maybe it used to be where there was still interest on it, back then 😅 compromise. Yes, it's 3.75% on the call money

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Soprano@Soprano

1Año

@Joris I will continue to add to the quality stocks in my portfolio. This includes Microsoft, Visa, John Deere, Stryker, Linde, etc. I mainly invest in software and healthcare. I am also investing in a few growth-oriented stocks via a savings plan.

Savings rate is hard to say. I opened the custody account in 2020 and since then have always invested an average of €1000 per month in shares (48 months x €1000). However, I started looking at shares in theory back in 2012 and have already started saving since then. So you could say that I built up the cash from 2012-2020 (96 months x €500) and the equity portfolio from 2020-2024.

So if you want to make a direct comparison, you now have a savings rate twice as high as mine and four times as high as mine in my early 20s.

And yes, you can definitely calculate overnight money and your custody account together in this way. Of course, the call money also generates compound interest, and that's not just in the custody account. However, we'll have to see how things look after the interest rate cuts.

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Kevin E.@KevinE

1Año

@Joris What is the long-term plan with the call money? Is at least one expense (property?) planned? On the one hand, only 100k is secured in the account, and on the other hand, it makes no sense at all to leave more than 6-8 months' worth in the account.

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Soprano@Soprano

1Año

@KevinC Yes, there is. And that is risk management. You can either fill your portfolio with defensive assets or do what I do with cash and build up a riskier portfolio. The nest egg is simply the nest egg. But you also need a little bit of powder to shoot if the market takes a significant dive.

But overall, I agree with you. You shouldn't put too much money in call money in the long term. Especially not if interest rates fall again soon.

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Joris@Joris

1Año

@KevinC The €1100 in overnight money is a nest egg, for vacations, possibly a new car at some point and we'll save up equity. We'll either finance it ourselves at some point or take over a house from my parents or my wife's father. So hopefully it will take a little longer, but I have 2 siblings and my wife has a sister. We want to save up enough so that we can pay off the "inheritance" no matter which house we take over. So if we don't buy a house ourselves, which is very difficult at the moment, we'll take one of them over. My wife's sister doesn't want a house and my siblings have houses and they are happy to have new money.
That's why it's so high, because we don't want to go into the deposit and we have to pump a lot of money into it.
If interest rates drop, I'll have to look around for alternatives.

Or I could just pay for everything with Bitcoin.

So one of two scenarios. 😂

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Joris@Joris

1Año

@Soprano sounds good. Good luck for the future.
Do you think there will be no more interest on call money at some point?
When that happens, interest rates on building loans will have to go down again and then we'll have equity for it. We will see.

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Kevin E.@KevinE

1Año

@Soprano is definitely one way of doing it. Personally, I'm almost always fully invested - apart from my nest egg, which doesn't count as an asset for me either.

I now have a solid cash flow from distributions. If I don't see any options (it's difficult at the moment), I either invest in ETFs (in addition to the savings plan) or wait a few months until opportunities arise again. That's also a few euros. But I probably won't invest more than 10% of my portfolio value (with a downward trend).
However, I also tend to invest defensively and do very well with it. Where I once took a higher risk (MPT), I'm 60% behind in the share price, so the dividend doesn't save anything 😬

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Michael@Punkt84

1Año

@Joris why should you only benefit from the interest rate in the custody account, please explain that

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Michael@Punkt84

1Año

@KevinC at 3.75 %, overnight money is just as good as any dividend-paying share

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Dividende > Zinsen@GoDividend

1Año

Nice to look at 👍

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Soprano@Soprano

1Año

@GoDividend I agree, it really gives you a bit of peace of mind.

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Dividende > Zinsen@GoDividend

1Año

@Soprano I think I'll be ready in the next few days. We'll see

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Soprano@Soprano

1Año

@GoDividend I'm looking forward to it, you can do it!

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Dividende > Zinsen@GoDividend

1Año

@Soprano the savings plans take care of that. Just sit next to it and watch

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Soprano@Soprano

1Año

@GoDividend Well, the shares also have to rise. Last month I was also only at €90k

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Dividende > Zinsen@GoDividend

1Año

@Soprano then I'll watch a little longer 😉

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Dunning-Kruger@Dunning-Kruger

1Año

Congratulations! A big step that you can be proud of.
(Edit because of Tipo:)

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Soprano@Soprano

1Año

@Dipsy I am too. It's often said that the first 100k is the hardest and that's true. In my 20s, I really focused on what was essential for me without a car loan, frequent travel or always having the latest iPhone.

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TheRealRaeffelBaeffel@TheRealRaeffelBaeffel

1Año

Stark👍👏👏

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Felix@Investor_in_Jogginghose

1Año

Life is a snowball and it will go much, much faster.

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Ilseboss@Ilseboss

1Año

Glückwunsch!

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Charlyfirpo@Charlyfirpo

1Año

Now just invest the second part🙃
Congratulations, strong performance. I don't think the average person can do that

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Peter@profit_mogul_43

1Año

Congratulations, I am at 90k

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Dieter@My1stMio

1Año

Your estimate is too conservative, you can reach the million much earlier! You have too much cash, capital has to be invested to make money!

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user022271d654414d45@user022271d654414d45

1Año

With the right investment (gold and silver mines), the goal should be achieved much faster!

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getused@getused

1Año

Gratuliere 🥳

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HSG2213@GSG3111

1Año

I wish you every success.

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Rene@Rene1507

1Año

Absolut 💣

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Aktienmasseur@Aktienmasseur

1Año

Well, from a purely factual point of view, your portfolio is only 60k in size. Why is there 40k lying around at only 4%? That's a pretty big nest egg. Full power or leave it alone, but like this ... well, there's more to it.

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Floriano@FlorianoPerlini

1Año

Unnecessarily high cash sum. In 30 years, 1 million euros will be worth much, much less. If I were you, I would increase the savings rate.

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WarrenMunger@WarrenMunger

1Año

My Gratulation👏🏻 and Respekt🙌🏻 for your achievement!🤙🏻

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Maksym@wealth_architect_177

1Año

Congratulations

Did you diligently save around €500-700 a month at the age of 18? Probably lived with your parents until 30?

Greetings

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tims92@tims92

1Año

My portfolio looks almost the same, I'm only 2 years older than you. I invest 1k a month in my custody account and 1k a month in my call money account. I also have just under 40k in my call money account, which is safer for me in case I need to make a purchase or something else. But I also own two cars worth 40k...., one of which I want to sell and then invest the money in my custody account. I just don't know where yet.....

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Moritz@leveragegrinding

1Año

I have calculated that I need 440k to be able to pay myself 1k a month without the money decreasing in the long term. Since then, I've been optimistic about my future, because it's achievable.

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