[34/NL] Looking for tips to get ahead

[lightlovehope]

I'm on vacation and going through my finances and trying to figure out how my family is floating and if its in line with our life ambitions. I made an overview to discuss it with my wife and dad (personal advisor). I'm torn between enjoying the fruit of my labor now while I have a young family or knuckle down and see if i can get ahead financially.

I could use advice on the following:

1. With my profile; enjoy, invest, or passive income hussle(s)?
2. Investment option for my kids education or house money (+-15 years investment window)
3. Retirement tips

Financial Summary:

• Two good jobs in fields we enjoy (Sr Manager in Consulting and Marketing Innovation team lead) about 100K+80K p.a. We both foresee continued growth opportunities
• Monthly income (incl. tax returns, bonus) about +-11.3k Net per month
• Monthly expenses (incl daycare, household, mortgage) about 10.0k Net per month
• Net Worth: 635k
  • House 1.3m w. 750k mortgage (@2.5%, 20 years) = 550
  • Crypto 25ETH + btc = 46k (ATH 120k)
  • Cash + Savings = 35k
• Un-used family loan of 40k @ 1.8% which i only need to start paying on the part i spend. This loan is meant to expand my home office and construct a outdoor lounge.
• House is in good shape (solar, new heat-pump, and insulated)

What i find notable

• We more or less cover our monthly expenses with our wage income and have 3 breaks (summer vacation, bonus season, and tax season) that top up our saving accounts
• My wife is spending 100 euro a month on sport.. but its her hobby
• Our fixed expenses are in good shape and we are not overpaying for hidden services.. looking at you life insurance)
• Kids become less expensive once they start going to school.. for a 2 (3 days) + 4 (2 days) year old I'm paying 550 Net per month (1950 - 1400 tax break)
• Investing in stocks is a pain because of my employer, its a tricky topic. I ended up selling my small managed portfolio 3 years ago (and dumped it into crypto..)

What we aspire (big to small)

• Option to retire on time or at least start working WAY less. We always say 55, but i recon 60 is more realistic with our current lifestyle.
• One day buy our dream villa in Italy, which probably costs around 3m
• We have always wanted to get into real estate, perhaps get apartments to rent. Current Dutch climate sucks
• My wife misses being charitable and loves the idea to revitalize a piece of land
• Setup a priviledge fund for our 2 kids so they can have a good start of their adult lives (education and housing)
• I want to have a 4x4 Defender or similar to drive the kids around town (

 

[emm3635]

@lightlovehope

My wife is spending 100 euro a month on sport.. but its her hobby

Keep doing that, it's only 1% of you total spending, it keeps her happy and probably also healthy (except if it's a dangerous sport or inducing a lot of injuries).

 

[danishlutheran]

@emm3635 Yeah weird comment, any decent gym in NL is already close to 50 so 100 really isn't much at all

 

[lightlovehope]

@danishlutheran This frugal financial dumbster is dumb sometimes and I just didn't know that

 

[jasonstroberts]

@emm3635 Yeah that stood out to me also. Why are you pointing out this particular expense? Nice gyms in my NL area cost between 80-125 euros a month so I don't find 100 a month excessive. At your income it's a tiny drop in a bucket. Why aren't you glad that she is investing in her health? I'm really quite puzzled by your comment and hope this is not something you complain about to your wife.

 

[lightlovehope]

@jasonstroberts I have always been rather frugal and in my head basic-fit only costs 20 euros and outdoor exercising is free. I have a mental image of our financial breakdown in my head and was surprised that we spend 150 on gym memberships. Not a complaint, just an observation which caught me offguard when making my overview.

 

[lightlovehope]

@emm3635 Dont worry I'm very supportive on this! Aside from getting our financials in order the other big ticket item is mental/physical health.

 

[njelly77]

@lightlovehope You share close to zero of your expenses and they are 10k+ a month. What do you expect people to tell you? If you want any of that stuff you need to spend less first. For the rest, how do you think you're getting passive income without any significant cash at hand?

 

[lightlovehope]

@njelly77 Good point, here is the export of my expenses:

https://i.postimg.cc/4xxj9T98/Persoonlijk-Budgetadvies-v2-EN-Page-1.png

https://i.postimg.cc/cCWb4qWB/Persoonlijk-Budgetadvies-v2-EN-Page-2.png

https://i.postimg.cc/Qt1z382M/Persoonlijk-Budgetadvies-v2-EN-Page-3.png

https://i.postimg.cc/D0cYSCyk/Persoonlijk-Budgetadvies-v2-EN-Page-4.png

https://i.postimg.cc/yNwGtgr5/Persoonlijk-Budgetadvies-v2-EN-Page-5.png

I'm sure there are some smart ways to get into passive income, such as a second mortgage on my house, or a commercial mortgage with a down payment.

 

[njelly77]

@lightlovehope You basically spend a lot on everything more or less, so yeah well, cut back on that if you want to invest because also those magic mortgages need to be paid.

For the rest, the screenshots aren't really readable on mobile.

 

[hieronymus]

@lightlovehope With 10k of expenses you will need at least 3M invested just to cover your actual lifestyle and have a very expensive list of wishes that points to at least double that. Investing 1.3k per month you will reach maybe 2M in 30 yrs if you have wind in your sails, so you definetely need to save more (at least 25% of your income) or resize your expectations. The fact you cant invest in stocks include ETF also?

 

[lightlovehope]

@hieronymus

• I can invest in stocks and ETFs, just requires some hurdles at work to figure out.
• I'm banking on my house to increase in value at a much higher pace then an Italian holiday villa. I live in a high demand location with a great house that can only appreciate in value - ceteris paribus.
• Good to note that I intend to buy a second hand car! Probably between 20-50k. It is not worth more to me then that.

 

[jimbeaux]

@lightlovehope Nobody will be able to tell you if you want to save or invest for the future. That is up to you.

 

[lightlovehope]

@jimbeaux Yup, but I hope you can agree that outside perspectives only help make the best decision! It is very possible I'm overseeing options that would push me towards a certain decision

 

[hiddenlotus]

@lightlovehope Are you planning to move to Italy if you buy a 3M Villa? If not, you can spend 3%/yearly (perpetuity) of that value (90k) and stay for 90 days in luxury hotels around Italy (cities, mountains, beaches, …) and be better off.

 

[lightlovehope]

@hiddenlotus Yeah, I would say we move to Italy if we buy that Villa. 2700 euros does not cover 90 days of luxery hotels. I just visited Frejus and we spend 250 a night. Right now I dont have 3% return on that 90k though

 

[ecker92]

@lightlovehope He's saying you can spend 3% of 3M, which is 90k, per year on hotels. 90k for sure does cover 90 days of luxury hotels.

 

[lightlovehope]

@ecker92 That.. yeah that is some sounds advice! Will take it into consideration

 

[emm3635]

@lightlovehope You are probably both also investing in retirement accounts, or your employer is. Yes? If so, how much will you two get starting at age circa 67 or so?

Try /r/geldzaken and /r/dutchfire as well.

 

[lightlovehope]

@emm3635 No special retirement investments, estimated retirement amount will be 122k per year aka 7k net per month. All things staying the same..

Sounds like a lot, but I'm fearful of the retirement scheme and inflation.

https://i.postimg.cc/FKNtHJxL/Pension-v1.png