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 20%.
- Minimum annual living expenses are €9,000.
- 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 3%.
- 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.
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% | 294,566.085 | 158,083.155 | 564,575.75 | 79% | 57 |
| 5% | 414,436.485 | 212,792.38100000002 | 832,017.9750000001 | 92% | 55 |
| 7% | 599,306.6699999999 | 298,993.148 | 1,273,632.6230000001 | 98% | 52 |
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
