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 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, 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% | 471,978.275 | 302,260.102 | 734,228.6579999999 | 99% | 54 |
| 10% | 424,780.445 | 272,034.09599999996 | 660,805.798 | 97% | 55 |
| 20% | 377,582.62 | 241,808.08000000002 | 587,382.93 | 94% | 57 |
| 30% | 330,384.79000000004 | 211,582.073 | 513,960.061 | 88% | 58 |
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
