@Wealth-Accelerator A simple calculation would be: in Germany, you might need 36k per year to live on (pure consumption, without saving). Assuming a 25% KEST and a 3% withdrawal rate, you would therefore need a portfolio value of approximately 1.6 million.
Another idea is the Coast Fire approach: how much capital do you want to have by age 65? Then you work backward to today using the assumed return to figure out when you could stop saving.
Another idea is the Coast Fire approach: how much capital do you want to have by age 65? Then you work backward to today using the assumed return to figure out when you could stop saving.
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@Xander13 Thank you. I think your reasoning regarding the 1.6 million and 3% is very sound.
I’m familiar with all the calculations involved and have been looking for my own approach that fits my needs exactly. I reached the Coast Fire milestone a long time ago.
I’ve tracked all my expenses over the years and know both what life costs and what my personal goals are and how much they cost. Over the past 10 years, we’ve needed about 3,000 euros a month to live on.
Now that we have a family, it’s more like 4,000 euros, and if I want to live the life I desire, it’s definitely 5,000 euros or even a bit more.
But there are also thoughts like:
I’d love to be able to say to my wife: hey, let’s fly to East Africa in three months, climb Kilimanjaro, and stay on the coast for another 10 days afterward. That’ll definitely cost 10k. You don’t do something like that without thinking it through. But I’d love to do it without thinking twice. (That’s just an example.)
I’m familiar with all the calculations involved and have been looking for my own approach that fits my needs exactly. I reached the Coast Fire milestone a long time ago.
I’ve tracked all my expenses over the years and know both what life costs and what my personal goals are and how much they cost. Over the past 10 years, we’ve needed about 3,000 euros a month to live on.
Now that we have a family, it’s more like 4,000 euros, and if I want to live the life I desire, it’s definitely 5,000 euros or even a bit more.
But there are also thoughts like:
I’d love to be able to say to my wife: hey, let’s fly to East Africa in three months, climb Kilimanjaro, and stay on the coast for another 10 days afterward. That’ll definitely cost 10k. You don’t do something like that without thinking it through. But I’d love to do it without thinking twice. (That’s just an example.)
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