First of all, congratulations 🙌
I don't know if you've shared it before!
Would you like to say how you defined your goal of 4 million?
I don't know if you've shared it before!
Would you like to say how you defined your goal of 4 million?
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@Wealth-Accelerator There is actually no sophisticated calculation behind it. It's more of a rough estimate that I'm aiming for.
- Estimated cost of living (with potential future family), 100,000 euros net.
-> Approx. 150,000 euros investment income required
I reckon with approx. 4-5% inflation-adjusted return p.a.
=3.3 million euros
At the same time, I would like to continue building up assets so that I can also increase my standard of living in the long term. Even if, of course, 100,000 euros a year would be anything but the poverty line. Also, returns cannot always be planned. There can be a lean period of one or two years and you still have to live somehow. Hence the safety buffer that makes up the 4 million.
Of course, the whole thing is also based on the assumption that I and my potential partner will no longer work. That won't happen in reality either. But I would at least like to have the freedom to do so.
At least that's how I arrived at the 4 million figure. But I know this derivation is open to attack! 😉
- Estimated cost of living (with potential future family), 100,000 euros net.
-> Approx. 150,000 euros investment income required
I reckon with approx. 4-5% inflation-adjusted return p.a.
=3.3 million euros
At the same time, I would like to continue building up assets so that I can also increase my standard of living in the long term. Even if, of course, 100,000 euros a year would be anything but the poverty line. Also, returns cannot always be planned. There can be a lean period of one or two years and you still have to live somehow. Hence the safety buffer that makes up the 4 million.
Of course, the whole thing is also based on the assumption that I and my potential partner will no longer work. That won't happen in reality either. But I would at least like to have the freedom to do so.
At least that's how I arrived at the 4 million figure. But I know this derivation is open to attack! 😉
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•@Part_Time_Joe
No, I don't think that should be a point of attack at all.
I'm still struggling with what point I should push my assets to, then wait if necessary and then increase my lifestyle.
I have the 1.8 million mark in mind. From then on, I'd like to incorporate the first withdrawals (approx. 2%) into my life and then gradually increase my withdrawals depending on my overall performance, with the overall goal of having assets in the mid-single-digit millions at some point.
No, I don't think that should be a point of attack at all.
I'm still struggling with what point I should push my assets to, then wait if necessary and then increase my lifestyle.
I have the 1.8 million mark in mind. From then on, I'd like to incorporate the first withdrawals (approx. 2%) into my life and then gradually increase my withdrawals depending on my overall performance, with the overall goal of having assets in the mid-single-digit millions at some point.
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