Net worth goal to retire

[alice59]

@hillpalash Lol you can live on 1000 a month in rural Spain, and most do (I used to live there).

 

[bizkidz55]

@alice59 yeah what i read here is total overkill one guy writing 3 million + own home, gives you 10k per month gross without rent, AND 3 million in savings, what the fuck 1500 and you life a comfortable life

 

[mafe]

@bizkidz55 Right now, but account for inflation

 

[bizkidz55]

@mafe yeah its still a lot

 

[dinofinney]

@hillpalash I'd say €1m excluding primary residence is enough for most people. This allows for €40k per year to live on which is nice when you are not paying rent or mortgage.

 

[bradely]

@dinofinney It is today, but would it be enough in 30-40 years that most of us will retire? From what I have seen most people here are 20-35 or so.

 

[bonin151]

@bradely Any numbers you see, assume they're in today's euros, inflation adjusted. So whenever he reaches the amount that brings the purchasing power of 40k€ in 2023.

 

[dinofinney]

@bradely Yeah that's true. If you substract inflation from the projected returns in a compound interest calculator you can see the real value of your projected net worth. I think that is more valuable than in absolute number as a goal.

 

[ayopaul]

@bradely The 5% rule asks “how much can I draw down over a long period per month, adjusted for inflation over time, tested against previous investment returns over the last 100 years”. To be honest I think if anything it is too conservative.

 

[resjudicata]

@hillpalash bells juggle historical erect doll spectacular vast license mysterious nine

This post was mass deleted and anonymized with Redact

 

[mkrist]

@resjudicata Isn't Slovenia pretty damn expensive? Is 500k really enough? :O

 

[thinkingatheist]

@mkrist Even 400k would be plenty IMO

 

[mkrist]

@thinkingatheist

Even 400k would be plenty IMO

ah ok I went to check - at 5% that would be ~20k/year or about the average salary in Slovenia. So I guess it's doable.

 

[thinkingatheist]

@mkrist It's actually (with the end years bonus for christmas) ~17.5k€. And yes it's very much doable in my opinion, however you can't really save with that kind of money so to get to 400k you need to have 2000€ net salary at the moment.

Everything is so expensive in Slovenia currently, even tourists agree and they are usualy from a wealthier countries.

 

[cbd5600]

@hillpalash What are you planning to do in rural Spain that makes you even question if it's enough money?

 

[lovelife34]

@cbd5600 buying all the ham

 

[bradely]

@hillpalash I need 2k eur a month to keep my lifestyle in Prague, and that is considering rent.

That would be 600k invested, however since I plan to retire in 25-30 years and there is also inflation, my goal is 1.5m minimum and 2m ideally. Also, I would (hopefully) have my own place.

 

[bizkidz55]

@bradely one of the few reasonable answers, 600k is totally sufficient, crazy people wanting 3 million

 

[brendaj63]

@hillpalash 5% p.a. is an aggressive withdrawal rate. I targeted 3.5% myself.

Further, it really depends on where in Spain you live. The wealth tax has basically ruined my early retirement plans in Spain although I plan to move to Cantabria now that they plan to exempt wealth tax v1.0 like Madrid and Andalucía (wealth tax v2.0 doesn't affect me yet).