FIRE Status Poll

Coffee
1

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:

  1. Net worth / Yearly cost (post FIRE)* = X
  2. X / 25 = Status in % (lets assume everybody calculates with the 4% SWR)

*The expected costs once FIREd = without income taxes and job-related costs

  • below 0%
  • 0% - 19%
  • 20 % - 39%
  • 40% - 59%
  • 60% - 79%
  • 80% - 99%
  • 100% - 119%
  • 120% - 139%
  • 140% - 159%
  • more than 160%

0 voters

1 Like
3

That could be a further interesting poll :wink:

4 Likes
4

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 wouldn’t work at all anymore?

6

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 we’ll 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.

2 Likes
8

Basically health insurance in France if you are not working.
(Oversimplified)

2 Likes
9

My FIRE number is 2.5M for a family of three in Switzerland.
For me FI is more important than RE, I plan to “retire” 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.

3 Likes
11

If I’d be on myself, I’d probably also be able to reach my goals somwhere in my late 30s, however my wife doesn’t earn a lot and will be working only part-time for a few years once our daughter arrives.

2 Likes
12

I‘m also more about financial independence than retiring early.

Current budgeted costs in Switzerland: approximately 2500 CHF/month * 12 = 30‘000 CHF/year.

I’ll probably need/want a 13th „salary“ 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? Anyways


30‘000 CHF / 4% withdrawal rate = 750‘000 CHF

So somewhat surprisingly, I‘m almost halfway there. Hope I‘ll manage to scrape together the remainder over the next 10 years. A million seems more comfortable though.

5 Likes
13

How do you count 2nd pillar? As a part of net worth or as future additional income?

14

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).

3 Likes
16


having withdrawn only the non-mandatory part of your 2nd pillar, you say?

18

Why would you want to, though, at a 6.8% conversion rate for mandatory benefits?

(that‘s obviously assuming you get a new job and become insured with a pension fund)

21

My number is quite easy to guess.

4 Likes