Hi Angelo , in the Netherlands they want to implement capital gains tax which means 37% tax on any gains due to increase of shares price that would have to be paid yearly.... Which means reducing your gains by 37%. How would this affect the 4 % rule ? It does not sound Is possible anymore to retrieve safely 4 % of your portfolio
Thanks Angelo. I want to enjoy ４% interest rate as well as cheap cost to buy ETFs and BONDS (real BONDS from Government with maturity dates).. I am not interested in Bitcoins. I need to continue to invest monthly some money (for which Flatex and Trade Republic do not charge any fee, I know this much), but I want to sell whenever I want and buy with very inexpensive fee.. If Trade Republic does that, I will open the account, but since they need my ID card to be plastic version, I have to create one, which costs about 200 euro (Biometric foto taken, etc), so I was wondering if Trade Republic really charge low fee to buy ETFs and government bonds (with actual maturity date). What is your experience with Trade Republic?
Good video as always! As someone going for FIRE in Norway, it can seem overwhelming at times. But compared to US I'm only paying fractions for health insurance or other health related costs, which I think for many US citizens ends up being quite costly. No doubt reaching FIRE can be difficult (if it was easy, everyone would be FIRE!), but there are so many ways to do this.
GOOD CONTENT!!! Very engaging right from the beginning These are tough times and frankly I appreciate how you discuss global finances in such a delicate way. Business and investment are the best way to make money even under the nose of the pandemic.
At least in Finland the taxation kills your changes while being in regular work and receiving all income as salary. But by being entrepreneur totally doable if not even relatively easy.
The good thing about Finnish taxation is that accumulating ETFs are only taxed when you sell a share at profit. All unrealized gains go tax-free. There are two types of taxes related to investing: dividends are taxed at 25.5% (15% tax free 30% on gains on the other 85%, essentially 25.5%). When selling shares, you can choose among two taxation options. Either the profit is the difference between the price the share was sold at and the price it was bought at or an arbitrary purchase percentage. After a year, the arbitrary percentage is 20% of the price, and after 10 years, it's 40%. If you choose the arbitrary 40% price. You'll end up with 82% of the stock price you sold. So, if you sold shares for €10000 after owning them for 10 years, you'd be left with €8200. Effective tax rate would be 18%. If you're a long-term index investor, the capital tax regime is pretty good, but salary is taxed at quite a high rate, and you're forced to contribute 7.55% of your salary to the national retirement system and your employer contributes 17% on top of your salary to the system. For the most part, the system is works like a paycheck-to-paycheck dependent employee. -- I'm planning on funding my own retirement. If I get a five percent real return, I can retire at 65 with a 3.5% withdrawal rate. If I can get a 7% real return, I can retire at 55. It's up to the market to iron out the final number.
@@excitedaboutlearning1639 Isn't that the standard that you are taxed only when selling? Never heard of taxation on unrealised gains, unless we are talking about a wealth tax
@@bonfusgear Well, the UK and the Netherlands tax unrealized gains as far as I know. The UK has a special account that the tax doesn't apply to and the Netherlands has certain threshold that must be crossed for the taxation to begin.
Austria and Germany also tax a small percentage of unrealized profits each year with Acc. ETFs, and Denmark taxes the entire amount that's in profit at the end of each year (!).
What's often forgotten is that expenses are also much higher in the US compared to Europe. In many places in the EU you can get by as a single with € 2000 a month, which is unthinkable in most of the US.
Tbh if you wanna achieve FIRE, you have to really save aggressively and lower your expenses can only go so much. You gotta earn more to save more. If you make 60k and spend 25k, you save 35k a year. But if you make 100k and spend 50k, you save 50k. So a US paycheck really helps because the US has a lot more jobs that pay really high salary where working one year equals 3 years in Europe. FIRE is just naturally a lot more achievable.
I'm turning 29 today and I'm almost there! Probably I will leave my job by the end of this year or early next year if things go well. Living in Spain allows me to keep a somewhat lower cost of life that will help me keep a sustainable lifestyle in relation to my investments. But I plan to keep doing some occasional work as freelance when I feel like it to remain productive and to keep getting new skills. Good luck everyone!
@or123and 0 seconds ago p.s. Austria is actually rather low tax if you are doing it right. You can achieve an overall of 20-25% tax & social security in total,y if you use pre-tax money to invest and only need to actually tax the money for your living cost. Also keep in mind rental income is freed from social security payments. If you do a proper mix between rental income, capital gains, leaving money inside your limited company (which is only taxed 20% corporate tax within the next couple of years!), combined with 0% personal income tax up to approx. 12000€ per person, and only 20% above, you can achieve a total maximum of 20-25% including (!) social security payments. If you share address for company & living, you don't even need to pay the behated ORF payments, only the company needs to pay (in specific cases) *if* the address is identical and the company is paying Kommunalsteuer.
Damn, I may be doing this all wrong - 40-50% of my income is currently going to taxes and social insurance (self-employed). Thanks for providing me with some ideas to look into!
(Very) early retirement is not possible if you have children. That’s the most significant cost factor and limits your earning potential. Plus, you’re vulnerable to divorce.
Hi Angelo, thank you for the video! I was wondering, if you'd be comfortable making a video about what you do for a living? I know it's not "in line" with your channel content so I understand if not, but I am really interested :) Greetings from your southern neighbor country! :)
Also always remember that the average living expenses tend to be higher in American than European cities, necessitating the higher savings rate :) And most people that have high incomes live in Silicon Valley, New York etc. Unless they want to move to a completely different state in retirement, they are going to need a ton more savings than people living in Berlin for example. But the last point is especially important, never compare yourself to others, just live a happy life. 😉
Hi Angelo, great video again. Could you please make a video explaining the Annual Cost and Charges Statement that today IB sent us for 2023? I am very new to investments and i found it difficult to understand what's inside that statement and if i need to do something from my side. Thank you !
No, you don't need to do anything! It's simply a summary of fees you paid (eg. for buying ETFs/stocks) and also shows you a sample calculation of the ongoing ETF-internal costs (TER aka. total expense ratio -> 0,22% p.a. for the FTSE All-World for example), which have nothing to do with IB itself.
Angelo, thank you for the Video. One thing I would like to point out is: While in Austria the retirement age is 65yo, the contribution years you have to fullfill to be elligible for retiring are only 15years, which means, we can calculate the required amount for retirement by just "filling the gap" between the desired retirement age and 65 (given that we have, at least, contributed for 15y, we have enough money to live until 65 and that the "Pension" is in accordance with your current expenses).
Thanks for the video Angelo. My goal is to not retire in Europe at all after reaching my goal, sure get a sustainable portfolio which I am almost at in my 40, but why to stay in an expensive western European country for someone without kids and I am working remotely anyway ;) there are plenty of safe countries with better weather and nice people and less expenses in the world.
As a person who was born and raised in a post-Soviet country and later moved to East-Central Europe, where I stayed for the last 10 years, I now live in the Benelux. Personally, I would prefer to live here for the rest of my days and only travel to other countries, rather than live there permanently. People often confuse tourism with immigration. What many West Europeans consider default options-safety, human rights, good quality of food and air, trustworthy governmental institutions-are unachievable luxuries in many countries. People are attracted by the beautiful picture of the lifestyle they could have but often do not think about the other aspects at all.
@@alarud I agree, I live in the Netherlands (number 1 quality of life as Luxemb in 2023) and I will stll be here BUT I don't have to stay here 6 months in the terrible weather. If you have the money you can just have two addresses and rent out your place when away ^^. I am also not considering any eastern european countries. Maybe Spain, Italy or South France 😊 will see by then
Angelo, is there an equivalent to the UK's SIPP in Europe? When you retire and begin to sell off some of your portfolio, will you be subject to capital gains on each sale?
A lot of countries offer tax advantages on retirement accounts. Also, Belgium does not tax capital gains at all (but do have one of the highest income taxes in the world).
Well done on your progress and it's great to know you plan on continuing the channel even when you reach financial independence. For me, thankfully I understand crypto, and how to trade in that market and that provides a return far in excess of what the traditional markets have. A 50% compound annual growth rate would be a poor year in crypto for example. That is the only thing that will facilitate a reasonable, and timely, retirement for me because I started investing so late in life. I do that as well, and quite heavily too, but I can see from my returns in the digital asset market it is what will make the biggest difference to my retirement plans. The other important aspect is that I plan on retiring in Spain (currently in Ireland). This is much cheaper than Ireland so my income/pension will go much further. That said, if I could go back in time and talk to my 18 year old self I'd tell young me to do three things. 1) Buy Bitcoin when it's invented and just hold on to it for 10 years or more. 2) Buy as much NVidia as you can afford when it comes on to the market. 3) Start a pension as soon as possible and max out your payments.
Thank you! Having a portion of our portfolio in Bitcoin since 2017 has helped us get to our financial goal faster as well so far, so I'm not arguing against an allocation in general. However, I would not be able to sleep comfortably having my entire net worth (or even a high %) in this very high risk asset class. There's no guarantee it will perform the same going forward, even though I obviously hope it will continue being a small return boost for our portfolio. Well, we can play the "what if" game with any asset that performed well :) The reality is, most of us would have likely sold the majority of them at different points in time.
I like the approach of using your portfolio even when it hasn't reached a certain point yet to start withdrawing 4% haven't thought of it in that way. Personally i'm looking at coasting with my partner. Let the portfolio do it's thing and don't touch it whatsoever until full fire has been reached which is going to be still 10 years earlier than traditional retirement. Just the sound of being able to get a part-time job and only cover your living expenses sounds like freedom. Not the 40+ hr corporate grind..even though currently i'm quite happy where I'm at.. but will I be this happy in 10 years time!?
you can live comfortably on 1800 - 2000 euros in most of europe.. and many people have take home pays of over 3000 euros.. if you invest 1000-1200 a month you can absolutely retire early no problem
Of course! But if you were to encounter health problems, wouldn't you also be grateful to have money saved up for treatments, for loved ones to be taken care of etc.? I'm certainly not arguing for a life that's filled with mindless "hustle" only to make as much money as possible, which could certainly impact health negatively!
What do you think about adding some tilt with small cap/value ETFs, I found some from spr and gave it a go. Great video as always, thanks and good luck. :)
I'd be ok with holding global Value and Small Cap ETFs as well, but I kind of prefer keeping things this simple. Maybe I'm getting lazier as our portfolio grows 😅 Thank you, wishing you all the best as well! 🥂
I'm 5 years now in Austria, SBG and I've already managed to attain Barista stage even though I'm still working. This is to just encourage everyone out there that FIRE is still possible in EU despite the low wages and outrageous taxes. All you need is discipline and multiple sources of income.
Von den 4% muß man im AT dann noch 27.5% Kest zahlen. Dann noch die Steuern auf die jährlichen Ausschüttungsgleichen Beträge. Noch keine Rede von der Quellensteuer. Und wenn man , weil nicht mehr durch den Job an AT gebunden, wegziehen will gibt es die nette Wegzugsteuer. - abgesehen davon, daß es dann nocht Parteien gibt die zusätzliche Steuern einführen wollen.
It is more about what you do, than where you live. A lot of people in the US can not retire early, and they can't even retire when they reach their retirement age, because they have no money. Early retirement is about setting yourself up for an early retirement. That can be done in the US, and that can be done in Europe (or anywhere else for that sake).
I grew up in Austria and retired with 30 in SEA, if it doesn’t work out at one point I could just come back and live on the way too high social benefits in Austria 😂
Taxes in Austria are crazy high. Then again, there are so many government agencies, other pointless beaurocratical public institutions and seemingly quite a lot of people who don't really work but seem to receive €2k per month Arbeitslosengeld that I guess someone has to pay for it. Being an entrepreneur in Austria doesn't pay off. The harder you work, the more they take. You don't get rich in Austria you are born rich!
I know, almost half of my income is going to taxes & social insurance in Austria (I'm self-employed) and the bureaucracy apparatus just keeps growing and wasting more of our tax money. There are too many incentives to work as little as possible or for that many people to work part-time in order to pay as little as possible (in %) in taxes and SV. Hopefully some of this changes in the coming years.
@AngeloColomboFi in Tirol you even have to pay an additional "tax" to the Tourismusamt because even if you are an IT/tech entrepreneur they say the reason you can be successful there is because they made everything nice 😅
European here, Dutch. 46 years old, ready to retire early by the end of the year. No crypto YOLOs, just "regular" investments. So it's definitely possible. Americans might find it easier to accumulate a large nest egg, but they have to build in such an insane buffer for healthcare costs I think I prefer Europe in this regard. Less unknowns, so easier to plan.
Im 26, i live in Europe, by my math, i will be FI in my low 40s, but my income is 3x the nationwide average and my girlfriend is also a bit above avg at 22. Sad reality to me is, if youre not working in fields that excessively outperform in earnings potential, an early retirement in your 40s or 50s is largely impossible, without severe cuts to your lifestyle and even then at a minor benefit. In easter europe most people live paycheck to paycheck with 1000 eur take home if not less.
That's not too bad at all! It's definitely harder to achieve in Europe, but as I mentioned in the video, there are many benefits that come from pursuing FIRE in the first place, even if someone never reaches their "magical" FI number
For common folks like us, almost unachievable. After living in Europe or Germany for 10 year i'll say this, The European Dream or in my case German Dream ( in contrast to American Dream) is build yourself up thought a degree from College / University / Trades and leave for a cheaper country as soon as you can. The Hassle of high taxes is not worth, the hassle of Bureaucracy is not worth, the hassle of gov. agencies is not worth in the long term. The golden years are Over. It is taxes after taxes after taxes and people don't even care.
It's a similar story in Austria. Almost half of my income is going to taxes & social insurance (I'm self-employed) and the bureaucracy apparatus just keeps growing and wasting more of our tax money. There are too many incentives to work as little as possible or for that many people to work part-time in order to pay very little (in %) in taxes and social insurance. Hopefully some of this changes in the coming years.
Thank you Sean! Not necessarily, I think that's going to depend on a few different factors, like our portfolio value as we're older or if we're planning to buy real-estate with that money in the near future (in that case yes, we'd hold more in cash/bonds).
The problem lies on the fact that investment returns, as in compound interest calculators, aren’t linear. If in one year you may get a stellar return, the next two year you may found yourself 20% down tag initial boost.
The 4% rule was first, and mainly, studied for a maximum period of 30 years and based on historical data regarding periods when stock evaluations were considerably lower than they are today, thus with higher returns, and last, but not least considering US shareholding and bonds, not global diversification. I would say that it’s highly discussable to transport that study for early retirement (considering a period longer than 30 yrs) and based upon global stocks.
There's quite a few studies showing 4% rule does not work, as in there's a high risk your portolio will bust before you die. I'd much rather invest in dividend stocks and shoot for maybe 3% yield and live on that. Chances are dividend growth will be higher than inflation so you should never run out of your principal let alone cashflow. Also just cash right now can yield 5% or more so maybe look into that.
The probability of running out of money in retirement using the 4% rule is extremely low. You actually have an even better chance with a portfolio of global stocks (which is how we invest) compared to only US stocks: thepoorswiss.com/trinity-study-world-stocks
might be a personal question, but how much do you guy put into your etf's every month? considering the high number of your portfolio in 7 years time. im impressed but also curious (in a positive way!)
Great video Angelo! I would like to ask you if I may, can you do a video on how you came up with your retirement number, whats the full process to calculate it and which tools you used, like that website calculator you showed here? Im 42, based in Portugal, and thanks to your videos I recently started investing on VCWE on IBK. I'm a bit above 10k in but I'm being kind of messy at the moment and I understand that's not a good thing to do on a long term investment journey. Thanks man for the content.
I talked about it in more detail here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HCwoH-W25bQ.html You can use this calculator to figure out how long it could take you based on your income, expenses and what you invested so far: networthify.com
Hi Angelo. Good video as always. Can you just answer me how do I withdraw if I only invest in VWCE for example? Do I seel the shares or there is another way? Thank you!
Hi Angelo, i am looking for your advice on this one. I have started investing last year and before I found your channel and your suggestion on the ftse all world I already put money into the msci and SP500. Currently 40% of my portfolio is in the ftse 40% in the msci and 20% in the SP500. Now I wonder if it is better to switch all of it to the ftse or just keep the SP and MSCI and just focus on the ftse from now on. So should I keep all and from now on only invest in the ftse? Or sell the msci and sp and put that in the ftse ( here I am afraid of taxes and the higher buy in point) ? Best regards form Germany
There is always something to be worried about and sadly it's unlikely this will be the last war either. If there is war in the US or Europe we all have other things to worry about than the value of our portfolio
In one of your videos you introduced that Trade Republic let you buy BONDS as well. I want to buy Dundesrepublic Bonds ("BUNDS"), which is german government bonds...Is Trade Republic you can buy it with transaction fee of 1 Euro? Really? (I know Flatex charges very high charge, as it has to go through stock exchange.. and they seem to charge fees ...). I want to know before I open account... Also, Bonds normally have minimum amount you have to pay (for example, 1000 euro)... I think you introduced in your video that you can buy it a very fraction of the cost.. Are such bonds special bonds, or BUNDS (government bonds of Germany ) can be purchased such a fraction of cost as well? I appreciate your feedback..
Angelo, what’s your strategy when you finally decide to withdraw capital from the fund? Sell down a fixed % each year? Distribution funds as simpler in that sense for the periodic cash flow. I’m in VWCE too, so curious
We're simply going to sell however much we need to cover our expenses on an ongoing basis in retirement. The distributing version only has a yield of 1,8% p.a. or so, so you'll likely need to sell some shares there as well if you're working with a 3-4% withdrawal rate.
Hi Angelo, many thanks for your informative video as always. Quick question : I heared you mention that you and your wife do a joint investment strategy. As i am in the process of doing same with my partner, i am interested in how this works. I saw scalable and trade republic do not offer joint brokerage accounts. How do you achive this joint investment you mentioned. Thanks in anticipation
We don't, we each have separate accounts as there's no tax advantage in Austria (you can't file taxes together even if you're married). It would actually make our taxes more complicated to have a joint account
@angelo Most of the brokers protect money from investments up to 20k(trade republic, IB etc) How do split your ETF investments since they are above 100K mark?
Your stocks & ETFs still belong to you, no matter the amount, even if the brokers were to go bankrupt. But I talked about it in this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-U47v1DkQRQk.html
Hello, thanks once more for the video! Quick question, I was amazed on how do you only expend 20K€/year as a family of 3? Even as 2 it seems so hard.. in my case I find it really "impossible". This means you only have ~1700 € /month for expenses? I mean I have a small house in Portugal and I pay 1000€ of mortage, with 700€ I would need to pay for food (400?) + car insurance + so many other things. I think to have a +/- life in my case I would need 36K/year (x25) = 900K€. Almost double your target eheh
We're very lucky that our housing costs are so low and that we don't need a car in Vienna. Here's a breakdown of our expenses right now for the 3 of us (wife, me, 1.5 yr. old daughter): Housing: 775€ Daycare: 200€ Transportation: 61€ Gym memberships: 2 × 30€ Phone contracts: 17€ Subscriptions: 10€ Groceries, dining out, travel, clothing, extras (1 year average): 950€ - Child subsidy & family bonus in Austria: −367€ TOTAL = 1.706€/month right now Without the 367€ of child subsidy/bonus from the state, we would be spending 2.073€/month here in Vienna.
@@AngeloColomboFiYour cost list here is dreamy but less realistic depending on goals. I see no travel, leisure or personal inclusions - which are a must, especially with a babe. A child of 1.5 is great but you haven't gotten to the kindergarden part yet - cost are not liniar and there will be plenty. As time goes along, thise costs will become exponential if you choose to access private education and some extra curriculum for the little goblin. Considering the later, a car may become a necessity which will add cost and value depreciation but will fulfill a need. In 2-3 years time that 1.7-2k will likely become 3-4k ...and that's a positive model, not accounting for inflation and prices increase across all market. By guesstimate, you have a ballpark 6-7k available funds per month - unless those become 8-10 in a 2 year span, the FIre pla. will see a springbreak at best if not a minor setback. The idea is nice, the goal is constructive, the mindset is very good, presentstion of the content...nice, clean...but the essence/ the overall message is only inspiring, it's feasibility is low and potentially applicable to a small fraction of EU residents. That's just my 2 cents ..and I'm not even doing a cold math case on the overall topic 😊
Hi Angelo, thank you for another insightful video! I would find interesting and inspiring to know a bit how your monthly expenses are distributed, as I am quite impressed that your monthly expenses are only about 1.7k for a family of 3 in Viena if I calculate correctly. I live in Munich so quite close and I guess very similar in some ways 😊
My pleasure! Sure, here they are right now for the 3 of us (wife, me, 1.5 yr. old daughter): Housing: 775€ Daycare: 200€ Transportation: 61€ Gym memberships: 2 × 30€ Phone contracts: 17€ Subscriptions: 10€ Groceries, dining out, travel, clothing, extras (1 year average): 950€ - Child subsidy & family bonus in Austria: −367€ TOTAL = 1.706€/month right now Without the 367€ of child subsidy/bonus from the state, we would be spending 2.073€/month here in Vienna. Here's a video where I talked about our expenses about a year ago: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-QPwguilb4ds.html
@@AngeloColomboFi amazing thanks so much for the details! Keeping the housing cost so low is great! That's what makes a lot of difference I believe when I compare to myself, since we pay 1.2k even if we also keep rest of the expenses pretty low. Will definitely check out your other video, thank you! 🙏
Funny how calculations are done for singular personas and not families. 1k euro per month? Maybe you won't die of hunger, as long as you own your living space (as opposed to renting or mortgage). You have a spouse? Move to a place thats much cheaper so you won't starve. You have kids? Yeah, even with 300k you'll starve rather quickly. With 4% withdrawal you need at least a million euro for LEAN fire. Not fat fire. But hey, feel free to try!
Hello Angelo, Thank you for another great video. I wanted to ask your opinion about investing in real estate-specifically, taking out a mortgage and renting out the apartment. In some EU countries, like the Czech Republic, this is still possible, and the conditions are more or less the same as when you take a mortgage for your own apartment. I assume you have citizenships in Hungary and Italy, which allows you to take out mortgages there if I am not mistaken. Prices in such countries are much more affordable than here in Central and Western Europe, and I am curious if you have ever considered such an investment and what your view on this is. Many thanks.
According to my loan adviser in Hungary there you do NOT need citizenship, only a recidency which is not hard if you are an EU citizen and have some friends in HU. Then you also need a source of income accepted by the bank, preferably a job, but rental income in HU are accepted if certain conditions are met. Most banks favour that income to be in Hungary, some banks accept a job from outside of Hu. (I am living in Ger. and took a loan in Hu). Taxation of rent income goes to HUN(!), 15% of rent income minus expenses - i.e. much lower than Germany in case you have a job, too. However, dealing with utilities, authorities, and last but not least handymen, may be much more unnerving than in Western countries. I am guessing, there is a minimal portfolio size above which it is worth the hassle, especially if you are not living in Hu yourself. I decided to only buy immo in a city where I spend much time - it is a lot of work compared to stocks. Not investment advise!;)
My pleasure! Sadly I have zero experience nor interest in rental properties myself, as I consider them to be more of a side hustle (dealing with tenants, repairs etc.) than a passive investment. Thus, I'm definitely the wrong person to ask, sorry :)
@@AngeloColomboFiI do the other way around. I have investment properties in Hungary and will increase the equity part of my portfolio gradually once I have a comfortable income from property. Until then, smaller equity savings go to property. Historical returns are similar to stocks, the entry barrier is high but I prefer getting the most difficult things done first. 2 other important considerations: with ca. 20% downpayment you can use the benefits of leverage on your IRR, and it immediately starts generating income stream where half of your returns are distributed. The math is similar to your strategy and I can't wait to increase my P2P and ETF portfolio once all properties are fully repaid.
Angelo, how did you calculate 4% of these investments you can use yearly? Your etf gives max 3% of dividends and if you include inflation rate, it gives 0% or even less.
The dividend portion is irrelevant, what matters is the total performance (price appreciation + dividends) long-term, which has been >7% p.a. historically.
If you have kids, sorry but you'll never retire. No sane parrent will sit at home while they know they can provide a better future and leave a better fortune for their children if they worked. If you want FI don't have kids or you'll work untill you die. If you don't have kids you can sell whatever property you own when you're old to travel the world but now you'll try to preserve as much wealth as you can so your kids can have a better start in life.
Of course my friend! 🙏 Here's a detailed breakdown from my reply to another comment: Expenses tight now for the 3 of us (wife, me, 1.5 yr. old daughter): Housing: 775€ Daycare: 200€ Transportation: 61€ Gym memberships: 2 × 30€ Phone contracts: 17€ Subscriptions: 10€ Groceries, dining out, travel, clothing, extras (1 year average): 950€ - Child subsidy & family bonus in Austria: −367€ TOTAL = 1.706€/month right now Without the 367€ of child subsidy/bonus from the state, we would be spending 2.073€/month here in Vienna.
First of all, health insurance usually covers the basics in many European countries. Still, if you need special treatments you have to pay for out of pocket, you're in the lucky position that you have a large nest egg to draw from, even if it's more than 4% that year. You simply might have to replace what you spent over time (eg via part time work) to make up for the difference, so you don't risk running out of money. You can of course also get extra insurance if this is something you're worried about.
Great video like always, and it give me hope as i live in Vienna and we are in similar live stages (young couple with 1 baby). I have a question for you: We purchased an apartment in 2021 with 1,5% fixed interest rate for 15 years and variable for the next 15 years loan (30 year wohnkredit), right now we are going in the first option and we are on track to paying the loan off by 2033, would you consider paying it off faster and invest or paying it slower and invest more? additional info, between my wife and i are investing around 40% of your monthly income.
Do you pay any penalties on early pay off? That's important to know. It sounds to me that it'd make sense to stick with the original schedule for 15 years or so and then aggressively pay off the mortgage IF interest rates are high, then. What portion of your monthly payment goes toward interest and what portion goes towards the principal? You can most likely get much more than 1.5% on the stock market. So, from an investment point of view, it makes sense to keep investing the extra money in the stock market for the duration of the first 15 years.
At 1,5% p.a. I personally wouldn't be in a hurry to pay it off quickly. Once/if the interest rate goes up though (eg. above 3-4%), then paying it off is likely the safest approach. But again, this also depends on how you feel having some outstanding debt
Can you make a video about conservative investing when you get older? im 32 now and im like nearly a 100% in ETFs. But this isn't realistic when im 50, right? Greetings from Munich.
Thank you for the suggestion, I'll think about it! It really depends on the size of your portfolio at that point, your risk tolerance and what you're planning to do with the money. If you're simply planning to withdraw a few percent each year it shouldn't make much of a difference long-term, but if you need the entire amount to be available for a large purchase (eg. real-estate), then it's a different story and you should keep more in cash/bonds, so that a sudden crash in the market doesn't mess with your plans.
He is able to retire early commisions on new accounts from brokers aswell as making youtube videos on finance which pays a lot even for 10k views. No groundbreaking knowledge just reddit posts presented in 10min video essays.
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
That sounds like a good plan. In the past two years, working closely with a financial market specialist, I've built a six-figure diversified stock portfolio. Now, I aim to diversify even more this year.
NICOLE ANASTASIA PLUMLEE’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Angelo, please keep politics out of the channel. The GDP was similar in 2008 because the US was in a deep crysis and the US dollar was low in value, and now Europe is in a crysis because of Russia and their war.
Nothing is "free". We pay for it via very high taxes and social insurance payments, which leads many entrepreneurs to start their companies other countries
To anyone reading this: Investments mostly protect your earned money from inflation, maybe a small bonus. They don't make you rich. To FIRE, the initial prerequisite in most cases is to increase your income by all other means: upskill + career progression with higher salaries, side hustles, starting a business, etc. Whatever that gets you 3x-4x the local average salary.
Sure, but they can still make you a lot better off and more wealthy compared to the average, providing you with a lot more options and freedom. And the bonus you mentioned has still been >5% p.a. on top of inflation historically over long time periods, so it's nothing to sneeze at.
@@AngeloColomboFi Agree with every point. Even 200€/month invested for 20 years means a reasonably comfy retirement, which is much better than penny-pinching
If you're after ETFs like the ones we buy or popular stocks, then either one is a great, inexpensive option. But once you want/need to go beyond that as you're interested in stocks with less volume, you want access to all the exchanges you could ever want and use (or even hold) different currencies, then you should definitely pick IBKR.
0:23 "the policies the EU keeps pushing on everyone" - I'm curious what policies that are being "pushed" you consider as negative - please elaborate. As you have a family and take advantage of affordable housing I was surprised to hear this from you. I lived and worked in the US and a number of European countries, I can say that the American lead over Europe comes at a great cost. Student loans, healthcare, insurance, taxes etc Many of my US friends in their 30s need two jobs just to be able to cope. I keep hearing about burnout and mental health...Some have actually moved to Europe and don't plan on moving back.
This was not a critique of life in Europe, we're very happy here and have no intention of ever moving to the US. And close to 50% of our income is going to taxes & social insurance, so we're certainly paying for the privilege of affordable housing 😅 Over the last few years I've simply had the impression that the EU is over-regulating everything, pushing an extreme & expensive climate agenda, stifling innovation and investments, introducing ridiculous AML & KYC measures and making its population worse off overall financially as the years go by. Not to mention the new rules for cash payments, which are now legally limited to 10.000€. Comparatively, in the US you can buy a house in cash and it's not an issue. Oh I forgot, they recently introduced an Orwellian truth ministry that's going to decide what's allowed to be shared online. What could possibly go wrong?
