Greetings to everyone in this forum board, I hope to find many like-minded people and useful info to read and share!
First I introduce myself, I am a 32 years old IT engineer who was lucky enough to land a job two years ago in one of the big IT companies out there, though I am based in Europe, more specifically in the Netherlands. Although I'm not originally from here the relocation was a no-brainer for me as I esentially doubled my salary taking into account perks like bonus comp and stock units.
I have always been very careful and conscious about my expenses since the moment I flew away from my parents house, keeping rent, food and transportation costs as low as possible without leaving a miserable life. I had my fair degree of travel and social joy but being mostly introverted and finding pleasure in learning new things and optimizing my finances I was drawn to the world of investments and the stock market.
After winning and losing money trading with some bad european companies, due to misleading online opinions, I found my way to a solid portfolio foundation following the buy & hold strategy focused on dividend income. So far I have found a community of people interested in financial independence through stock market investments for the long term which has been of great help, I also took advantange of every drop (specially in 2016) to construct a winning portfolio.
Going down to numbers, which I have been diligently typing into spreadsheets since my very first paycheck, I take home 52k euros yearly of after tax income + around 3k in dividend income. Currently, I'm living with my girlfriend in a small rented apartment paying 600 euros monthly (internet + utilities included), transportation amounts to aprox. 250 a month for an 11 year old car (gas, insurance and road tax), 250 euros for food and all the rest of expenses are optional. Insurance and pension plan are automatically deducted from my paycheck so I don't add them into the equation and also don't take into the account the nice cushion the stock units provide in the background.
We don't have children and not expect to have them in the near future so we are perfectly fine living for less than 20k a year and saving and investing the 35k left over. My current portfolio is worth around 105k and yielding around 3k after tax, my goal is to grow it to 1 million euros in 12 years or less time if possible, and receive 36k after tax yearly dividend income to be able to retire. This will happen in 2029 according to my calculations and the simulators I've been using. I'm taking inflation into account in the sense that the companies that form my portfolio raise dividends every year over the inflation rate we are having in Europe.
A small amount of my savings are in a well-managed mutual fund with track record proven managers which I trust, though I would like to allocate a portion in index funds whenever the market goes down and gives me a chance.
Summarizing:
110k in defensive dividend yielding stocks + mutual fund
15k non-dividend stock cushion
14k cash
That is:
90% stocks
10% cash
52K net income
3k dividend income
Goal to retire in 2029 with 1 million that yields 36k net dividend income
Not particularly interested in buying a house, more pro-rent anywhere I travel to but of course I may consider buying something cheap and adequate with cash (around 100k price) at some point. Also not interested in bonds as right now the yields are very low, maybe will consider it in the future.
I would like the experts here to find flaws and errors in my FI plan as I'm totally commited to it.
Thank you!
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