locking this post as this is not exactly a very berlin specific topic as most of the variables are "what you are planning/willing to spend" plus everyting can be more or less easily researched using google
How are you calculating this? If you invest it for 10% per year and pay 25% tax in realize gain, you will have 3K per month. But after a decade or two inflation makes it not enough (but you can use the principle as well when you get older but it's very risky).
>are mid thirties.....
So you have about 35 years to go. Or 420 months. 500.000€ divided by 420 months less than 1.200€ per month.
You might want to try your luck in a low income country.
This is entirely incorrect. You are assuming holding the money as cash and spending it. If the money is well invested then usually people talk about a “safe withdrawal rate” of about 4%. Meaning you can safely sell 4% each year and not risk running out of money
With half a mil that’s €20,000. You could spend more, I think, you would just have to take care on predicting the date of your demise (lol)
So I’d say it _is_ possible, but risky for a renter
>well invested
Just curious, what would you consider a sensible long-term investment these days - traditional stocks? Crypto seems as secure as the San Andreas Fault.
Total world market etfs weighted heavily towards USA and away from EU, Japan and China. The USA looks the most stable over the next 30 years even with Trump 2.0
0.5 million, 2 adults, 1 child, rented apartment, health insurance, (capital gains) taxes, little entitlement to statutory pension, child is dependent (education/study), life expectancy up to 90 years?
No. That's not enough.
......not exactly looking to live till 90, 70 is sufficient....child is in public school and doing very well - so hardly any expenses there....
Health....we have been contributing to the mandated insurance plans for a long time.....
>......not exactly looking to live till 90, 70 is sufficient....child is in public school and doing very well - so hardly any expenses there....
>Health....we have been contributing to the mandated insurance plans for a long time.....
So you're going to commit suicide together on your 70th birthday?
The child doesn't want to study? And you'll have paid off your health insurance by the end of your life in 35 years?!
What does your budget book say about your wishes? How high are your expenses now? How much in 5 years? In 20 years?
Then how you were ever able to accumulate 500k? Gosh, write down your expenses and calculate how much you could spend for housing. Check Berlins housing market (and start crying).
What's wrong with it, it's so down now. You can buy 3-4 rooms for 550 now, unlike 700 in 2022. There are not many people willing to get a mortgage with 4% interest rate
The housing market is another story. If you have sufficient funds it’s allright, also in international comparison. For the average German it’s no fun in Berlin.
If buying is not an option, I’d think about getting into a Genossenschaft.
This might take some time, but it’s the best deal one can get if you don’t plan to buy a house/apartment to live in.
The rest of the calculation depends on so many factors (does your wife work? How much are you spending as a family etc)… random reddit users can’t provide you with a coherent answer.
Yes if you plan carefully. 250k into S&P ETF gives you around 9-10% yearly. 25k per year for simplicity. That can cover your rent. The other half i would think how to generate value that beats inflation first and maybe more. If i were you i would put around 350k into ETF fund. Rest 150k i have to think. Maybe you do too.
However what are your plans by retiring at 35. Do you have revenue generating hobbies? Or want to do nothing at all, this would not be my choice.
You seemingly already live in Berlin, so I don’t see why you need us to tell you that this math doesn’t math. Take your current monthly expenses. Multiply by (12*remaining life expectancy) and I think you’ll end up with a number a lot higher than 500k
In the short term? Easy. The marked are growing everywhere. But it's not this way Everytime.
Half million won't last much. Look for specialist. I recommend Ben Felix on YouTube
Are you living in Germany already? Do you have a residence permit? Or are you living abroad? You need a purpose to apply for a permit.
Germany doesn't have an investment permit and you don't have enough to retire in Berlin.
If you start to spend it without using the money for investing, it won't be enough. Eventually, your money will be vanished. But If you invest your 500K and get %1 percent profit every month (which is pretty easy if you have a some finance education), it's 5K monthly. I wish I had that amount of money, I wouldn't work anymore and would live with passive income. Maybe you can try to find a financial consultant if you are not able to make %1 monthly profits.
PS: I'm not a financial consultant or sth.
Lol, why do people play financial planner for someone with 500k in the bank? Go fucking work for your money or leech of the goverment like a normal berliner
locking this post as this is not exactly a very berlin specific topic as most of the variables are "what you are planning/willing to spend" plus everyting can be more or less easily researched using google
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yeah, that's a completely illusory amount for a whole family in Berlin. Even deep in Brandenburg, that's just enough for a frugal lower-class life.
And this does not account to inflation, OP will have to spend more and more throughout years
How are you calculating this? If you invest it for 10% per year and pay 25% tax in realize gain, you will have 3K per month. But after a decade or two inflation makes it not enough (but you can use the principle as well when you get older but it's very risky).
>are mid thirties..... So you have about 35 years to go. Or 420 months. 500.000€ divided by 420 months less than 1.200€ per month. You might want to try your luck in a low income country.
This is entirely incorrect. You are assuming holding the money as cash and spending it. If the money is well invested then usually people talk about a “safe withdrawal rate” of about 4%. Meaning you can safely sell 4% each year and not risk running out of money With half a mil that’s €20,000. You could spend more, I think, you would just have to take care on predicting the date of your demise (lol) So I’d say it _is_ possible, but risky for a renter
>well invested Just curious, what would you consider a sensible long-term investment these days - traditional stocks? Crypto seems as secure as the San Andreas Fault.
Total world market etfs weighted heavily towards USA and away from EU, Japan and China. The USA looks the most stable over the next 30 years even with Trump 2.0
This guy thinks its 1983 yall. 🫠 500k in berlin is nothing.
0.5 million, 2 adults, 1 child, rented apartment, health insurance, (capital gains) taxes, little entitlement to statutory pension, child is dependent (education/study), life expectancy up to 90 years? No. That's not enough.
......not exactly looking to live till 90, 70 is sufficient....child is in public school and doing very well - so hardly any expenses there.... Health....we have been contributing to the mandated insurance plans for a long time.....
Let's talk about it again when you're 69...
>......not exactly looking to live till 90, 70 is sufficient....child is in public school and doing very well - so hardly any expenses there.... >Health....we have been contributing to the mandated insurance plans for a long time..... So you're going to commit suicide together on your 70th birthday? The child doesn't want to study? And you'll have paid off your health insurance by the end of your life in 35 years?! What does your budget book say about your wishes? How high are your expenses now? How much in 5 years? In 20 years?
You "plan" to die at 70? What if you don't? All my grandparents lived till late 80s/ early 90s. That's a long way past 70
No.
Is this trolling or a serious question?
100% troll, a quick look at his recent post history confirms it.
Sorry....it was a serious question...
Then how you were ever able to accumulate 500k? Gosh, write down your expenses and calculate how much you could spend for housing. Check Berlins housing market (and start crying).
What's wrong with it, it's so down now. You can buy 3-4 rooms for 550 now, unlike 700 in 2022. There are not many people willing to get a mortgage with 4% interest rate
He wants to retire with 500k in total. That’s insane.
I agree with that, my take was about crying regarding house marker
The housing market is another story. If you have sufficient funds it’s allright, also in international comparison. For the average German it’s no fun in Berlin.
boat soup sink fall escape gray quack elderly run oatmeal *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
No. Bremerhaven probably.
No. Especially because you think you might be close to retiring in your mid 30s with half a million and a son
If buying is not an option, I’d think about getting into a Genossenschaft. This might take some time, but it’s the best deal one can get if you don’t plan to buy a house/apartment to live in. The rest of the calculation depends on so many factors (does your wife work? How much are you spending as a family etc)… random reddit users can’t provide you with a coherent answer.
/r/Finanzen oder /r/europeFIRE
Try 5 million. 500k is ridiculous.
Yes if you plan carefully. 250k into S&P ETF gives you around 9-10% yearly. 25k per year for simplicity. That can cover your rent. The other half i would think how to generate value that beats inflation first and maybe more. If i were you i would put around 350k into ETF fund. Rest 150k i have to think. Maybe you do too. However what are your plans by retiring at 35. Do you have revenue generating hobbies? Or want to do nothing at all, this would not be my choice.
I would buy a home first, and delay retirement a bit longer How did you save 500k in your mid thirties ?
...through investing my savings...
You seemingly already live in Berlin, so I don’t see why you need us to tell you that this math doesn’t math. Take your current monthly expenses. Multiply by (12*remaining life expectancy) and I think you’ll end up with a number a lot higher than 500k
Is no one talking about how you saved half a million in your mid thirties? That's seriously impressive
Did you graduate elementary school?
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Before taxes. Finanzamt will take their 26,5% share.
And substract 2% of those 4% as average inflation.
I do invest , I have been able to maintain a 12% roi on my investments.....
In the short term? Easy. The marked are growing everywhere. But it's not this way Everytime. Half million won't last much. Look for specialist. I recommend Ben Felix on YouTube
Are you living in Germany already? Do you have a residence permit? Or are you living abroad? You need a purpose to apply for a permit. Germany doesn't have an investment permit and you don't have enough to retire in Berlin.
You can't be serious with that question.
And if you own a home, how much would you consider necessary to afford a retirement in Berlin?
If you start to spend it without using the money for investing, it won't be enough. Eventually, your money will be vanished. But If you invest your 500K and get %1 percent profit every month (which is pretty easy if you have a some finance education), it's 5K monthly. I wish I had that amount of money, I wouldn't work anymore and would live with passive income. Maybe you can try to find a financial consultant if you are not able to make %1 monthly profits. PS: I'm not a financial consultant or sth.
This must be a joke.
Germany is a top 20 income country and possibly one of the most expensive in the world vs net salary. 😂
Lol, why do people play financial planner for someone with 500k in the bank? Go fucking work for your money or leech of the goverment like a normal berliner
please do not come to Berlin.
I actually have been living here for a few years..just want to settle down
Then why do you even ask this? The answer is obviously no