These days, most of your personal finances are probably online. You probably have access to your bank through an online banking platform. Also, you are likely to access your broker through your browser or your phone. If someone is getting access to your online personal finances, he can do a lot of harm! You need to protect yourself!
If you want to reach Financial Independence and be able to retire, you need to know how much you are going to spend while retired. If you are retiring next year, it is straightforward to know how much you are going to spend. However, if you are going to retire in a long time, it is not trivial to estimate how much you will spend in retirement.
I have already talked about the different ways tor each Financial Independence (FI). Regardless of which way you choose to reach FI, you will need an accurate estimation of your retirement expenses. Without this, you will not be able to know how much of the road remains.
You have probably heard a lot about Financial Independence. A lot of things on this blog are about my path to Financial Independence (FI). But why would you want to be financially independent? There are many reasons for wanting to be financially independent. And as you will see, retiring may not be the most significant reason.
In this post, I am going to list the main reasons people want to be Financially Independent. Of course, the reasons may not be the same for everybody. Some reasons will appeal to you more than others. It is fine. Not everybody has the same motivations in trying to reach FI. And not even everybody wants to reach FI!
You may have some reasons to reach FI that I did not even think about! Please let me know in the comments if that is the case! I would like to know why you want to be Financially Independent.
Neon and Revolut are both digital banks. However, they are very different banks. Until recently, they both were very complimentary. But then, something changed!
In January 2020, Neon announced that they removed the fees for payment abroad with their cards. It means that they are now a direct concurrent of Revolut, which everybody is using to save on currency exchange fees.
And in June 2020, Revolut reduced the amount of free currency exchanges you can do!
This new information makes it interesting to compare the two. Do you need Revolut now if you have a Neon account?
We have already covered many investments on this blog. But we have not yet covered gold as an investment! Most people know Gold as a metal, and a lot of people have some at home in the form of jewelry.
But not many people know that we can invest in Gold. There are several different ways of investing in Gold.
But should you invest in Gold? And how can you invest in Gold?
In Switzerland, you can make a voluntary contribution to your second pillar. These contributions come with some tax advantages since you can deduct that from your income. Therefore, you have a return equal to your marginal tax rate. And this return is almost instant.
However, the money is then blocked into the second pillar. And the returns on that blocked money have been very low in recent years. Finally, you can only withdraw the money from your second pillar if you retire, if you buy a house or if you start a company.
One question many people ask is whether they should contribute money to their second pillar or continue investing in stocks.
When you are trying to reach Financial Independence (FI), the best way to reach FI faster is to increase your savings rate. Your savings rate is the amount of your net income that you can save.
For increasing your savings rate, you have two options. You can either spend less or grow your income. These two options will directly increase your savings rate. And as a result, they will speed up your road to Financial Independence and make you reach FI faster.
The current crisis is not a good thing. However, it is not the end of the world. And it can teach us some things about being socially isolated. Let’s stay positive and try to learn from this unprecedented isolation.
During this crisis, we have been learning many things. Some of these things we were already doing, and we only realize their importance now. But for other things, we understand that we can improve some things in our life. That way, the next time we will have to deal with such a crisis, we will be more prepared.
Typically, when we do retirement simulations, we want to take as many years back as possible. For my previous Retirement simulations, this meant using about 150 years of data to do the simulation.
However, there is potentially an issue with that simulation. What if we are not in the same situation now anymore? What if the chances of success in recent years are significantly different from before?
I thought it would be an interesting analysis to focus on the last 50 years instead of taking the full 150 years of data. For instance, this would mean there would be no Great Depression in the analysis.
So, let’s see if the 4 percent rule would have worked in the last 50 years. And of course, we are going to test many more withdrawal rates!
2019 is now well over! It means it is time to set ourselves new goals for 2020. I liked having yearly goals since we started. So, it is now time to set our 2020 Goals.
Earlier, we reviewed our 2019 Goals. We checked every goal to see what could be improved. Some of the goals were not perfect. But some of the goals were great. On some of the goals, we did not do enough to reach them.
Our 2019 goals were already much better than our 2018 goals. I am going to try to make our 2020 goals even better. Of course, I will not know how good they are until the end of the year. But I am confident this is the best set of goals yet.
So, we are going to build on that to make even better goals for 2020. Without further ado, let’s go over all the goals we set ourselves for 2020.