I don't think the figures quite fit. You mention a savings rate of €1,200 in your profile, but say that it's currently €20k / year (€1,666 / month).
What about the dividends? Are they reinvested? If not, these are withdrawals from the custody account.
Otherwise: you did everything right to invest so heavily at such an early stage. I only started at 28 and had to work really hard to have a satisfactory portfolio (for me) for my age.
If I were you, I would think about where exactly you want to go. "Building up assets" is not very specific. You're probably not saving for the sake of saving.
What about the dividends? Are they reinvested? If not, these are withdrawals from the custody account.
Otherwise: you did everything right to invest so heavily at such an early stage. I only started at 28 and had to work really hard to have a satisfactory portfolio (for me) for my age.
If I were you, I would think about where exactly you want to go. "Building up assets" is not very specific. You're probably not saving for the sake of saving.
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@KevinC You're right, I'm currently saving around €1000 via a savings plan. On top of that, I reinvest around €200 per month in dividends. I get to the 20k because I save a large proportion of my bonus and Christmas bonus etc.. That's usually between 5-10k a year.
Where do I want to go?
I want to have the freedom to decide for myself how much and where I want to work from around the age of 55. So it doesn't have to be early retirement, but I don't want to be dependent on a salary either. I find it difficult to give a fixed figure, as I don't know how some factors such as inflation will affect me, but 1.5 million would be the target by 55 (as things stand now).
Where do I want to go?
I want to have the freedom to decide for myself how much and where I want to work from around the age of 55. So it doesn't have to be early retirement, but I don't want to be dependent on a salary either. I find it difficult to give a fixed figure, as I don't know how some factors such as inflation will affect me, but 1.5 million would be the target by 55 (as things stand now).
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•@MoKi28 You could use this - as a very rough guide - to calculate your required savings rate. Personally, I always calculate conservatively with a 5% return after inflation in the long term.
Let's quickly unpack the calculator: €1,500 savings rate (better safe than sorry), 27-year investment horizon, 5% return = €1.524 million. Goes exactly to 🤷♂️
Let's quickly unpack the calculator: €1,500 savings rate (better safe than sorry), 27-year investment horizon, 5% return = €1.524 million. Goes exactly to 🤷♂️
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@KevinC Buffer: Salary increases > inflation rate not taken into account, return may be higher.
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@KevinC yes, that's exactly the 5% I was expecting ;)
Exactly, I expect a decent salary increase in the near future, which of course comes on top.
Exactly, I expect a decent salary increase in the near future, which of course comes on top.
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