A quiet Sunday spend celebrating my father-in-law, followed a quiet 🤫 Saturday, where I was mainly home alone with the boys because wifey was at shift work, usually gets my mind wandering.
Think 🤔 it started with the realization that our combined pensions, and free portfolio 💼 is actually almost about to cross 1 MILLION USD … what a fucking moment. After a close look, it might actually only be 990k, but was a bit higher a week or two ago, and also depends a bit on DKK/USD exchange rate. I will start following it a bit closer
Also yesterday, I got to play around with one of those investment calculators on the Internet. Basically just – initial investment, monthly contributions, annual return and savings horizon. KABOOM 💥 what does it yield? Funny 😄 enough, off course I plotted our numbers in, and played around with the assumptions.
On a 20 to 30 year horizon, it adds up quite a bit, but started to slowly realize, that more and more the most “binding” condition is starting to be our annual saving. We are already saving quite a lot as you can see in an earlier blog post
2020 Savings rate update; 67% achieved so far.
so it will be hard to save more then what we are already doing. More and more I started to realize that the end-game result will increasingly depend on the % return and horizon for us.
Today I realized that as we roughly save 100.000 USD a year, then given an assumption of an average return of 10% then we are actually also at the point where our yearly return on investments will equate the savings we can make on our take home pay 💰.
That is quite a realization that I am a bit uncomfortable with. What does this mean? Should I act in any way on this information? And if so how?
I mean; I didn’t really plan to stop working right now, and playing around with the wealth calculator I really just want to keep adding chips to the table. But starting to be in a place where “the fruits 🍉 of your labour” will yield a diminishing significance to your overall net worth kinda brings a new perspective to the game. It it then really worth it. Laboring in the corporate world I mean?
What do you think? 🤔 When is it time to call it quits?
/Minimal5
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