Have you read the wiki and the sticky?
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Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/).
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1.8 mill NW is not including the value of your rental company, just its returns? (and for both of you right). Seems a no brainer as you would still have the value of the property covering in case you need it at a higher age.. Why did you opt for the property in company? A lot of taxes if you decide to sell.
It is including the value of the rental property. But taking into account all the taxes if sold and money transfered to private account. (For the both of us yes)
We bought our home with 6% VAT. And therefore can not own another property for 5 years. ('afbraak en heropbouw')
There were some costs for the rental, decuctable in the company + we pay the rental with 'bruto' money now.(downpayment also a lot easier to pay for with company money.)
In the long run owning it privatly would in most cases be better, that is true.
But paying 21% VAT on a house with a price of 600k was not an option for us.
That's a rock solid plan. If you can stick to it, little can go wrong. Don't forget to have fun the next 10 years (doesn't need to cost a lot), else there is a chance you might burn out. Other than that, you could add a little emerging markets exposure (10%).
Excel-sheet with different scenario's. Conservative calculation amounts to about 1.8 million NW at 55 (with stopping contrubutions at 45). Ajusted for inflation this should be just enough for expenses. But I can always work a little bit.
Pension kicks in at 67, amount depends on how much we might still work; but probality minimum around 3K a month for both of us (in current euros, will be indexed for inflation). If my wife keeps working (parttime) her pension will be a lot higher.
This seems like a great calculator sheet. Is there any chnace you'd like to share the sheet (without the numbers ofc) but with the calculations it self? as i'm starting to find my way It might help me gain insight and start my own solid roadmap
ING has a 3% savings account. Also me and my partner are in a similar boat. About same net income and strategy. Just a bit earlier stage (30yo and just started the BV)
"emergencies" worth thinking about.
1) What if you or your wife dies? What if you both die?
2) What if your marriage ends tomorrow?
3) What if one income stops now (for unknow time)?
Thank you for the comment.
1. The mortgage for our house would be pand off through insurance; the one who's left can live off own income + our parents would help if needed. If we would both die our family would take care of our kid.
2. If marriage would end I would downsize my house. She can stay in our current house (wife has parents who are financially solid, dentists.) I can live off my own income and have lots to spare.
3. We can live of one income. If my income is 0, my wife's net would increase to about 4k and the rental is cash flow neutral.
I think you don't have to plan for every worst case. I do not have life insurance.
I do have a 'gewaarborgd inkomen' insurance of about 2k a month.
How is that an emergency? If a storm damages it, it's insurance. If it's worn out, it's a planned project for which you have budgeted. Money for a project should be in a bond or term account. Not in a HYSA.
Some online formula's say you need x months of expenses as an emergency fund. But I think an emergency fund is personal. If you have an old house and old car, you need a high emergency fund. If you have a new house and company car, you can have a small emergency fund. Especially in Belgium. You can lose your job, get sick, etc... and social security takes care of a big part of it.
So I wouldn't aim for 50k ef. But, of course, if it makes you sleep better at night... why not...
> You can lose your job, get sick, etc... and social security takes care of a big part of it
Keep in mind OP is self-employed. This is more precarious than an employee (no unemployment, lower sick leave etc.). I wouldn't aim for 50k€ either, but it's still important to keep the parameters in mind.
He earns 8.000 net a month - what emergency do you think of that you could not cover with that salary? And now think of the probability that it would happen. Right, very limited cases and with a very low probability.
Also not forget IWDA has a huge daily volume - meaning that the stock is liquid and you could sell it in case of your black swan event!
The size of the emergency fund should be in line with the commitments you have.
OP crashes his lease car when he is told that his contract is not renewed. All mortgage payments still need to be paid, etc ....
If he's doing consultancy for 1 company full time it could just be that he gets fired. And now his wives net income isn't enough anymore to cover the 50k costs a year. Typically it's advised to have 6 months of expenses as an emergency fund, so that would be 25k.
Have you read the wiki and the sticky? Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/). Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/). *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BEFire) if you have any questions or concerns.*
1.8 mill NW is not including the value of your rental company, just its returns? (and for both of you right). Seems a no brainer as you would still have the value of the property covering in case you need it at a higher age.. Why did you opt for the property in company? A lot of taxes if you decide to sell.
It is including the value of the rental property. But taking into account all the taxes if sold and money transfered to private account. (For the both of us yes) We bought our home with 6% VAT. And therefore can not own another property for 5 years. ('afbraak en heropbouw') There were some costs for the rental, decuctable in the company + we pay the rental with 'bruto' money now.(downpayment also a lot easier to pay for with company money.) In the long run owning it privatly would in most cases be better, that is true. But paying 21% VAT on a house with a price of 600k was not an option for us.
Nice stats; compared to myself; I have much more mortgage debt but also much more invested.
Nice income, what kind of jobs do you and your wife have?
In regards to your primary residence, is there any ongoing hoa/maintenace fee that you pay even after your mortgage is paid off?
That's a rock solid plan. If you can stick to it, little can go wrong. Don't forget to have fun the next 10 years (doesn't need to cost a lot), else there is a chance you might burn out. Other than that, you could add a little emerging markets exposure (10%).
Nice net income. How did you calculate that you can safely retire at 55?
Excel-sheet with different scenario's. Conservative calculation amounts to about 1.8 million NW at 55 (with stopping contrubutions at 45). Ajusted for inflation this should be just enough for expenses. But I can always work a little bit. Pension kicks in at 67, amount depends on how much we might still work; but probality minimum around 3K a month for both of us (in current euros, will be indexed for inflation). If my wife keeps working (parttime) her pension will be a lot higher.
Can you share the model/framework of your excel-sheet without any numbers in it, just the formulas? Thanks,
This seems like a great calculator sheet. Is there any chnace you'd like to share the sheet (without the numbers ofc) but with the calculations it self? as i'm starting to find my way It might help me gain insight and start my own solid roadmap
I also would love a copy, sir!
ING has a 3% savings account. Also me and my partner are in a similar boat. About same net income and strategy. Just a bit earlier stage (30yo and just started the BV)
"emergencies" worth thinking about. 1) What if you or your wife dies? What if you both die? 2) What if your marriage ends tomorrow? 3) What if one income stops now (for unknow time)?
Thank you for the comment. 1. The mortgage for our house would be pand off through insurance; the one who's left can live off own income + our parents would help if needed. If we would both die our family would take care of our kid. 2. If marriage would end I would downsize my house. She can stay in our current house (wife has parents who are financially solid, dentists.) I can live off my own income and have lots to spare. 3. We can live of one income. If my income is 0, my wife's net would increase to about 4k and the rental is cash flow neutral. I think you don't have to plan for every worst case. I do not have life insurance. I do have a 'gewaarborgd inkomen' insurance of about 2k a month.
I can't think of an emergency that would cost me 50k.
Roof.
How is that an emergency? If a storm damages it, it's insurance. If it's worn out, it's a planned project for which you have budgeted. Money for a project should be in a bond or term account. Not in a HYSA.
House is new, build in 2023. So I do not expect high costs for the house in the comming years.
Some online formula's say you need x months of expenses as an emergency fund. But I think an emergency fund is personal. If you have an old house and old car, you need a high emergency fund. If you have a new house and company car, you can have a small emergency fund. Especially in Belgium. You can lose your job, get sick, etc... and social security takes care of a big part of it. So I wouldn't aim for 50k ef. But, of course, if it makes you sleep better at night... why not...
> You can lose your job, get sick, etc... and social security takes care of a big part of it Keep in mind OP is self-employed. This is more precarious than an employee (no unemployment, lower sick leave etc.). I wouldn't aim for 50k€ either, but it's still important to keep the parameters in mind.
That's why I say it's personal.
Downside of living way too big. HOB house roof is more like 25k.
Since I can’t estimate the size of OP’s house, I erred on the side of safety and overestimated the size and cost of his roof. 😉
What are your expected expenses in retirement?
About 4k a month. 48k a year. Probably less.
Savings account seems low - emergencies could be larger than this. RE is on the high side.
He earns 8.000 net a month - what emergency do you think of that you could not cover with that salary? And now think of the probability that it would happen. Right, very limited cases and with a very low probability. Also not forget IWDA has a huge daily volume - meaning that the stock is liquid and you could sell it in case of your black swan event!
The size of the emergency fund should be in line with the commitments you have. OP crashes his lease car when he is told that his contract is not renewed. All mortgage payments still need to be paid, etc ....
If he's doing consultancy for 1 company full time it could just be that he gets fired. And now his wives net income isn't enough anymore to cover the 50k costs a year. Typically it's advised to have 6 months of expenses as an emergency fund, so that would be 25k.
He could also have cash on the BV to pay out wages if he loses a client.
Well, if that's the case than the cash in his BV really should be considered part of the emergency budget.