Im already fire but wanna move back to my own apartment
Hey everyone, I own my own apartment with an estimated value of at least €550k. €160k of mortgage is left but I’m not paying it off, only paying a little interest. I rent it out at the moment getting in €1950 a month. €450 goes to my dad who pays the interest on the mortgage and my life insurance. So €1500 is left. From that I pay off my student loan which is €100 for the next 30 years so im left with €1400 a month. Every year I can increase the rent with 4.4%.
Right now I live back with my parents which costs me barely any money since they are kind to pay for groceries. But I also move to Turkey, where I have a citizenship, once in a while where I stay at my father’s apartment. This is where I can spend some time alone. This costs me approximately €600 a month and I plan on staying for about 6 months a year. This means I can save 6 months of €800 a month and the other 6 months I can probably save like €900-€1000. Let’s say that I save €10k yearly and I put it all in WEBN (an ETF) which has generated approximately 10% of annual interest historically. And my starting point is €3000 invested.
I also have $9000 dollars in Turkish Lira’s and the bank is giving me at least 30% on that. But I leave it out of the equation for now.
Now why I’m making this post: I’m 26 atm and here in the Netherlands you get €1500 when you reach the retirement age of 68. And as you can tell I don’t spend a lot of money so let’s be conservative and say I’d need €1200-1500 when I live back in my own apartment in The Netherlands. The 4% rule says I’d need €360k-€450k. A compound interest calculator on the internet says I can reach that within 12-14 years. Let’s say I’m 40 when I reach €400k (the calculator says €480k after 14 years) and let’s say history repeats itself with its 10% on the ETF’s. It means I’d have €40k of interest annually. Which is €3.3k a month which is way more than I need. And also considering I get €1500 after I bridge from 40 years to 70 years, my question is: can you help me draw the line? How much money saved in ETF’s is realistic for my situation? I didn’t really understand how to use the 4% calculator in my situation. That’s why I’m asking you guys too. I’d love to have my own place back but I’m not going to rush it. If I have to wait 15 years I will.