Varied parameter
Investment return (expected)
3% → 7%
Investment Return Comparison
Freelancer / Contractor in Munich · A volatile financial ride
This page compares financial outcomes for a Freelancer / Contractor living in Munich, Germany, following the A volatile financial ride life scenario.
A highly unstable financial path combining income uncertainty, market swings, and repeated adverse events. Outcomes range widely, from recovery and growth to prolonged stagnation.
Munich offers very strong income potential in high-skill sectors, along with some of the highest living costs in Germany.
The comparison focuses on how changing the Investment return (expected) influences long-term results, while all other assumptions remain constant.
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual labor income is €24,662.
- Labor income grows annually at an average rate of 4%.
- A labor income tax rate of 35% is applied to gross earnings.
- The saving rate is set to 20%.
- Minimum annual living expenses are €19,500.
- Savings are invested with stochastic annual returns.
- The average annual return is 5%, with year-to-year variability.
- All values are expressed in real terms, assuming average annual inflation of 2%.
- The simulation includes stochastic life events such as unemployment, health issue, unemployment, and health issue.
- These events may temporarily affect income, expenses, or net worth.
- Financial independence is defined as having net worth equal to 25 times annual expenses.
- Bankruptcy is triggered if net worth remains below €0 for 2 consecutive years.
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Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome. Most simulations fall between these two values.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 3% | 66,792 | 7,105 | 148,232 | 0% | — |
| 5% | 75,181 | 7,315 | 177,035 | 0% | 62 |
| 7% | 83,933 | 7,561 | 211,702 | 1% | 63 |
How Your Financial Life Evolves
These charts show how each scenario affects long-term outcomes, including expected wealth, downside risk, and the likelihood of achieving financial independence.
Net Worth Median
Net Worth Range
Fi Probability
Fi Median Age
