Income Tax Comparison
Lawyer in Romania
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual income is €18,000.
- Income grows annually at an average rate of 3%.
- The income tax rate varies between 0% and 30%.
- The saving rate is set to 30%.
- 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 |
|---|---|---|---|---|---|
| 0% | 854,996.4199999999 | 544,710.179 | 1,344,515.955 | 100% | 48 |
| 10% | 769,496.7749999999 | 490,239.16000000003 | 1,210,064.3590000002 | 100% | 49 |
| 20% | 683,997.135 | 435,768.141 | 1,075,612.7640000002 | 100% | 50 |
| 30% | 598,497.49 | 381,297.123 | 941,161.1680000001 | 99% | 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
