Six digits in four letters

As of today we have over 100k invested in the low-cost index fund VWRL. Arguably divided between my pension and our private investment account. That does not stop me from being proud and happy we made it this far on our FI journey! But what can reaching this 6-digit milestone bring to our financial future? Let's look at some scenarios.

FU money

100k is over 4 years of net median income. If one of us looses a job here or there, we will be fine. And that is even ignoring social security we would be entitled to the first stretch of time. Seems like we are getting close to the point we don't have to put up with BS in case we start to dislike our job. And no big worries in future economic downturns, our jobs might not be save but we are!

Let's start withdrawing!

Maybe we should just give up on this whole FI idea. Let's spend the money! Well, maybe stick to the 4% rule, we don't want to loose it all. As off today, we can start paying ourselves 333 euro every month. We'll throw in an inflation correction as well each year, no problem we are loaded!

And you know what is really cool? Without saving another euro of our income in the 30 years ahead, and while spending an inflation corrected 333 euro each month from our current stack, the median outcome is that our portfolio will grow to just over 1 million. That is a handsome bonus by the time I reach my traditional retirement age!

How much can you spend anyway?

One problem in the above scenario is that I would not have a clue what to spend all our income plus the bonus 333 euro on. So a more realistic scenario is that we just continue saving and acquiring even more VWRL. Compounding will mean that the second 100k will come faster than the first one! 

One thing to consider is diversification into real estate. This is an option that does not come cheap. Substantial investments are required but are becoming realistic.

The future looks bright. I feel like a bank, too big to fail! 😊