28yo Swiss aiming for FIRE in ~25 years

Dear community

I’m 28 years old and live with my girlfriend close to Aarau. I’m working as a client advisor in a Swiss bank (yes I know, I’m not able to recommend Mustachian investment solutions, but you have to live from something). My goal is to reach FIRE in about 25 years. I don’t have a specific sum, but something like 2.5 Mio CHF for 100k/year inflation-adjusted would be pretty nice.

My current net salary is 5350CHF/month (+ variable bonus in Q1 each year, probably around 12-16k). This will probably increase substantially as I’m underpaid right now. Offers are there, just waiting for the right moment to switch. However, under the current circumstances my expenses are:

Standing orders:

1350 CHF to the joint account covering (total costs):

  • Rent: 1000 CHF
  • Food: 700 CHF
  • Gas: 350 CHF
  • Cats: 150 CHF
  • Internet: 55 CHF
  • Electricity: 55 CHF
  • Serafe: 30 CHF

800 CHF taxes
500 CHF vacation
300 CHF yearly expenses (clothes, gym membership, public transport, insurance/tax for car, insurance for private liability and household)

Other bills:

55 CHF for Wingo Mobile (network coverage from Swisscom and roaming is important for me)
335 CHF for Swica health insurance (300 CHF franchise, I need that because I do a lot of physio therapy)
20 CHF for Visana additional health insurance (getting 20 0CHF/year for the gym and up to 200 CHF for glasses all 3 years)
35 CHF for Netflix & Spotify

Total expenses: 3’400 CHF
Left: 1’950 CHF

I keep roughly 250 CHF per month for activies and going out, the other 1’700 CHF are going to VIAC and IBKR. Bonus payment goes directly to IBKR (subtracting the part for taxes). So all in all I’m able to invest ~2’500 CHF per month (or more, depending on the bonus).

To get to 2.5 Mio CHF inflation-adjusted within 25 years, assuming I get a real return of 5%/year on VT and VIAC, I either need to increase my monthly investments to ~4’200 CHF or hope for a better market outcome in the next 25 years. Or include some leveraged ETFs into the portfolio like SSO or UPRO. Or bump it up to ~3’700 CHF, keep assuming 5%/year and taking the pension fund into it.

Appreciate any feedback, thanks.

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Why are you aiming to spend 100k/y if you are happy with ~40k/y now?

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Health insurance and taxes. Especially health insurance might increase extremely in the coming years. I fully expect to pay 15-20k/year in 25 years (inflation adjusted).

And I don’t want to live frugal my whole life.

Why not just move to a country with socialized healthcare like France or Belgium?

I might become a digital nomad. Or maybe my lifestyle will change as soon as I’m retired.

But like I said, it’s just a number.

Do like the map your are creating for yourself. Remember, especially in banking you have chances to increase your salary > as a investment adviser (salary 140k-200k pa). Focus on your personal and business development (e.g. AZEK, CFA) and invest money into yourself! It will pay out in a long term many times. When I read your statement, I to think that your realistic way to get to your goals (25y) is to push up your income. And there are ways and strategies for that.

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Yeah that’s also my idea. I don’t have a Bsc yet, so I need to do something. I was thinking about Bsc in Banking & Finance from Kalaidos: https://www.kalaidos-fh.ch/de-CH/Prorektorat-Lehre/Bachelor-of-Science-FH-in-Banking-und-Finance-integrativ I could do that while working 90%.

Never heard of AZEK, thanks. Still not sure where to go. I’m really interested in investments, so a higher paid job in that field would be great.

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