After the very interesting salary level poll, I am interested about the actual status on the FIRE journey of the users here. We all know, Income is only one relevant part of FIRE but the combination of income & expenses are the real challenge to master.
For the sake of simplicity i suggest to calculate it like this:
Net worth / Yearly cost (post FIRE)* = X
X / 25 = Status in % (lets assume everybody calculates with the 4% SWR)
*The expected costs once FIREd = without income taxes and job-related costs
Do we want to share our numbers as well? I think this gives some perspective. My FU Number (I quit my regular IT employee job and do other stuff (work in an animal shelter or as FIRE coach ) is around 1-1.5M), my chill your life FIRE is about 2M+ - 3M max. I wouldnât wait any longer than 3M
Currently still under 20%
I kinda have a hard time estimating the yearly costs. Like are there any taxes or social contributions that you have to pay if you wouldnât work at all anymore?
You probably wonât have more than what you save now (meaning gross income - (taxes + savings rate) = total spending budget, except for the AHV on wealth part.
It is also a good point to describe what is your targeted family situation as FIRE.
If you are planning to remain with no child, you will need less.
Another point will be to describe your place of fire. Being retired in France or Germany will require less.
So for my part, in the past 6 years we spend on average 45 kchf with my wife.I estimate weâll need 50k chf.
My estimation will be 1,4 m chf with a safe withdrawing rate of 3,75% for a family of 3 in France (except Paris). I will keep an occupation to generate 10 keur a year or my wife will be working ( to avoid puma).
Maybe a bit more because I am including 2nd pilar and I have currently less than 50% in stock.
My FIRE number is 2.5M for a family of three in Switzerland.
For me FI is more important than RE, I plan to âretireâ from working full time somwhere between 50 and 55. Then I will probably follow some projects/interests of mine and (hopefully) still earn some money with it to support my net worth.
Same, although I aim for 35-40, but we donât know how markets will go, so I am really flexible. I also plan on doing geo arbitrage (I have multiple passports and can go almost everywhere without VISA, even RUS and CHI) maybe 6-9 months here, 3-6 months in the Balkans, Vietnam, Japan or any other country.
If Iâd be on myself, Iâd probably also be able to reach my goals somwhere in my late 30s, however my wife doesnât earn a lot and will be working only part-time for a few years once our daughter arrives.
Iâm also more about financial independence than retiring early.
Current budgeted costs in Switzerland: approximately 2500 CHF/month * 12 = 30â000 CHF/year.
Iâll probably need/want a 13th âsalaryâ to cover holidays and the occasional discretionary purchase.
If I ceased working, the lack of commuting to work, lower taxes (due to lower income) and more frequent opportunities to cook my own meals should be able to compensate for that. Though there may be AHV/AVS as an additional cost I have to bear myself? AnywaysâŠ
30â000 CHF / 4% withdrawal rate = 750â000 CHF
So somewhat surprisingly, Iâm almost halfway there. Hope Iâll manage to scrape together the remainder over the next 10 years. A million seems more comfortable though.
Personally:
AHV/AVS 1st pillar as futureadditional income.
Pension fund as part of net worth.
The money is there, and I could (factually) get it, if I more abroad to retire early (or continue holding in a vested benefits institution, probably not at 100% equity/stocks though).
The pro gamer move is to retire abroad and return after a year or two If you arenât obviously stupid, they canât do anything about that. My sister works in the ErgĂ€nzungsleistungen department in ZH and this happens frequently. People blowing their pension up and returning back to get AHV+EL.
Because you may want to invest the money on your own and leave it to your heirs + forget the 6.8% lol, when I am 50, I can only hope that my money wasnât distributed to old people lol
Not much interested in the RE part but certainly in the FI one. Fun thing is that the number pretty much increases as I get older. There were a few years where I started off on the 50% range, and after 12 months ofninvestment returns and savings had dropped - as my FI target had increased. At the Moment, I shoot for ~ 75k per Adult. That would (given different lifestyle) as well roughly support one Kid. So my share is ~ 1.9M. Make it round and call it 2M. Still some way to go haha.
) is around 1-1.5M), my chill your life FIRE is about 2M+ - 3M max. I wouldnât wait any longer than 3M
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