Aim to retire with 1M, how should I distribute my monthly savings?
Hi everyone,
27F, Finnish through naturalization (no kid), no inheritance and I’m looking for financial investment advice to FIRE ASAP barely based on 9-5 jobs.
My after-tax income is €2,900 per month. Apart from being a full-time worker, I’m also a student now, so I get the benefit from low rent. My monthly expenses are around €600 - €800, which I think is relatively low. Assuming that 2000 free cash every month (Saving rate 68.9%)
At the moment, I have €35,000 in savings. The distribution is as below:
- I have €15,000 in a flexible savings account for 3 months with 1.55% annual interest. The advantage is that I can withdraw the money anytime, but if I do, I lose the interest. I mainly use this as an emergency fund.
- I also have €10,000 in fixed rate account for 10 month with 3% annual interest, which I also keep for emergencies.
- I also have €10,000 in fixed rate account for 3 month with 2.5% annual interest, which I also keep for emergencies.
Context: A bit more context, Finland unemployment rate is soooo high and I am not confident for the immigrant like me can find a job within 1 year if I am unemployed, so I keep my buffer very high to feel more secured. But willing to loosen it down a bit if things make sense.
And for Investment Portfolio (worth €24,000):
I have €5,500 invested in Bitcoin and I don’t include it in my main financial planning because I consider it a high-risk investment and assume I could lose it all. I plan to hold Bitcoin until it at least approaches my purchase price of €29k per coin, which I don’t expect to happen soon.
On Nordnet, my current portfolio are:
- €8,000 in an S&P 500 ETF
- €6,000 in a technology-focused S&P 500 ETF
- €4,000 in a gold ETF (currently down)
- €2,000 in an oil ETF (currently down)
For the monthly investment, I setup:
- €50 per month in commodities through my bank (AUAG)
- €100 per month in medium-risk assets (bond, yield A)
- €300 per month in emerging market
- €300 per month in ETF US tech
- €1100 per month in World ETF / IWDA
- Do you think I should increase my monthly ETF investment to max €2,000? or lower it down?
- Should I consider investing in other types of funds? I’m asking because I would really like to retire early. Considering the world is crazy at the moment, I don't know should I be more cautious or ambitious!
- I set the target as 1M, though with 4% withdrawal I think 500k is also feasible to FIRE but the inflation is uncertain so I keep 1M, how do you think?
Any advice would be greatly appreciated. Thanks!