Investment Return Comparison
Freelancer / Contractor in Romania
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual income is €19,800.
- Income grows annually at an average rate of 4%.
- An income tax rate of 10% is applied to gross income.
- The saving rate is set to 40%.
- Minimum annual living expenses are €9,000.
- Savings are invested with stochastic annual returns.
- The average annual return is 6%, with year-to-year variability.
- All values are expressed in real terms, assuming average annual inflation of 3%.
- The simulation includes stochastic life events such as 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.
Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 3% | 712,545.61 | 470,757.12299999996 | 1,077,929.145 | 100% | 48 |
| 5% | 1,008,525.2350000001 | 647,796.319 | 1,561,819.073 | 100% | 46 |
| 7% | 1,470,460.395 | 937,022.0109999999 | 2,318,879.521 | 100% | 44 |
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
