Mustachians, introduce yourselves!

Share your story
234

Hi Forum,

Frank here:

  • IT professional
  • Just moved to Zurich
  • Net worth: CHF150k
  • Investments: 100% in VT
  • Salary: CHF155k/y
  • Target saving rate: 85%

Looking forward to learn more and more :smiley:
Frank

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235

hi everyone and thanks to MP for his blog & forum :slight_smile:

Babyjag here:

  • married, 2 kids, double income, full time workers, in our fourties
  • moved to Switzerland 11 years ago
  • Net worth: CHF 1.5 M
  • Investments: 40% real-estate (including rental investment. Evaluated at buying value, not current market value), 40% bonds (2nd & 3rd pillars), 15% cash, 5% stocks (ETF’s, shares, VIAC)
  • current saving rate: 40% on net income (ie after income tax, and after 2nd pilar deductions)

currently thinking about rebalancing portfolio in order to accelerate to FI target

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236

What’s your FI target in CH?

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Around 5 M CHF when we both want to retire, 3 M CHF if only one of us wants to retire. Wish me good luck :rofl:

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238

Hello guys !

Very glad to have found this community since I am very mustachian newbie.

  • Late 30’s Chilean native but raised in Switzerland.
  • Currently living in the countryside of canton de vaud with girlfriend and 2 young children.
  • Homeowner with some rental properties in Switzerland and Latin America.
  • No stocks at the moment and we save around 40% of our income.

Since I am a very new mustachian, I am really happy to learn from all of you guys.

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239

Dear Mustachians

First of all thank you for the very informative forum, I have found a lot of good and useful information here. So far I have been a silent fellow reader and would like to take the opportunity to introduce myself today.

I am 46 years old, born in Italy, grew up in Germany. Since 2002 I live and work work in Switzerland. Currently I live in the Winterthur area where I work as an IT project manager. I live with my partner in a rented apartment we have no children.
I heard about the FIRE concept a few years ago, since then I’ve been a fan and try to align my lifestyle with these principles. In 2018, I took a closer look to my financial situation and created an ETF portfolio. My medium-term goal is to build up a wealth that makes me more independent, so that I no longer have to take on every job, for example. Another goal would be to be able to get out of the job as early as possible before regular retirement. This goal would have been achieved for me with a net worth of approx. 1,500k.

My financial situation

Net worth approx. 470k

  • Cash: 75k
  • Pilar 2: 200k
  • Pilar 3: 22k (VIAC 60)

ETFs: 150k

  • MSCI World (53%)
  • MSCI Emerging Markets (22%)
  • SPI (25%)

P2P: 22k

  • Bondora
  • Mintos
  • Peerberry
  • EstateGuru
  • Robocash

Income: 100k (80% workload due to burnout a few years ago)
Current savings rate: approx. 30%

Looking forward to lots of learnings and an exciting journey with all of you!

Cheers

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240

Is the 100K income the combined one (including your partner)? Independently of that, the 30% can be improved (since you have no kids and live in Winterthur). How much is the rent of the apartment?

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Hi Zerte

Thanks for getting back to me. 100k is my income, my partner’s income is arround 65k (so cobined arround 165k).
In terms of fire, I’m currently more focused on my own finances. My partner is showing increasing interest in the FIRE concept, but there is still an opinion that it is a certain risk to make to much sacrifies for the future … do you know that? how do you convey that to your partners?

Rent is 2800 p.m. (3.5 Rooms, 100 sm, parking incl.)…I think there is some potential for improvement with the living costs…unfortunately apartment prices in Winterthur are almost like in ZH City this days ;-(

Cheers

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242

85%? That’s incredibly ambitious. 155k net or gross? Anyway, thanks for sharing and good luck!

With a safe withdrawal rate of 3.6-4.8% that’s 15’000-20’000 CHF of monthly expenses. Even for 2 people that’s quite a lot. If I may ask, what do you think will be the biggest chunk of your spending once you retire?

Welcome and thanks for sharing! May I ask, is that the salary, taxable income or net income? I thought that a 100% FTE project manager would get a salary of 150-180k. But maybe that only applies to UBS / CS.

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243

that’s a rough calculation considering a super conservative 3% withdrawal rate, considering retirement in Switzerland

5 M would be the FU number if we still need to finance our kids for a long time, shall they wish to study abroad or in an expensive school. By the way they’ll have to work - at least a bit - as well, such as I did!. Without studies to finance we would be OK with 3.2 M.
I also need to consider financing the retirement of one of my family member who will basically get peanuts when retiring. I will have to finance up to 2000 EUR/month when this person will become dependant.
And I know I need a lot of security - I do not want to feel on the edge

Will do the math again, maybe with less conservative figures

Silly question: you mention 3.6 to 4.8% withdrawal rate → is this amount considering the 2nd and 3rd pillars ? Because our net worth excluding 2nd and 3rd pillars is barely 0.9 M, so still a long way to go…

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244

I guess AHV and pension fund.

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It’s 100k gross income. I know, there should be room for improvement. It’s because I changed from IT engineer to project management just a few years ago. Of course CS/UBS are paying more…but you have to be able to work in this kind of structures. I worked several years in this environments, in my experience no fun at all :face_vomiting:

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Not silly at all. I would say it’s better to include them, for completeness. For the 2. pillar the current “Umwandlungssatz” is even 6.8%, so much higher than a typical withdrawal rate you see on FIRE articles/forums. But of course, for a number of years, you will not have access to that money. Thus, I’d say it’s not easy to just set a single FIRE amount as a goal. I guess, due to pillar 1, 2 & 3, many of us will not have to be worried about survival once they reach the age of 65 (unless you will still have to support your kids or parents, but hopefully the kids will be already independent by then, and parents, well sadly, have passed away).

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247

Some bad news:

On the other side:
At the end of 2019, the SNB had built up more than CHF804 billion in foreign currency investments.
So there is money somewhere in case of issues-

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Careful: it is not like the Norvegian sovereign fund (similar size) which sells real oil and owns the investments. In order to weaken the Franc, the SNB creates CHF’s out of nothing, sells them against EUR’s or USD’s, and buys Facebook shares (among others) with those foreign currencies. But this could be reversed. If international investors suddenly find it dumb to pile CHF’s, the SNB may have to buy them back and make them disappear. If they are lucky, the whole process (creation and destruction) would be neutral and those hundreds of billions could just vanish cleanly.

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249

2 kids = 1 M each to study?

250

The figures are rough and strongly depend on the day we fire. For now we still need to pay full daycare/school costs (around 50k per year) for the next 6 years minimum, until the kids are more or less independant
Studies can be quite expensive too ; of course it will depend on a lot of factors, so we will need to adjust our figures
And as mentioned above, I might have to finance a dependant somewhen, ca. 30k per year.
If you add these numbers, we might indeed not be at 2 M, but we are not that far…

251

babyjag

1m

The figures are rough and strongly depend on the day we fire. For now we still need to pay full daycare/school costs (around 50k per year) for the next 6 years minimum, until the kids are more or less independant
Studies can be quite expensive too ; of course it will depend on a lot of factors, so we will need to adjust our figures
And as mentioned above, I might have to finance a dependant somewhen, ca. 30k per year.
If you add these numbers, we might indeed not be at 2 M, but we are not that far…

253

~500k…congrats! Can you disclose at least in which domain it is possible to earn that much?

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Thanks! IT. Fixed is ~250K, the rest is bonus + RSUs.

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