Varied parameter
Investment return (expected)
3% → 7%
Investment Return Comparison
Software engineer in Hamburg · Independent and uneven
This page compares financial outcomes for a Software engineer living in Hamburg, Germany, following the Independent and uneven life scenario.
A non-linear income path shaped by project-based work, variability, and self-managed risk. Flexibility is high, but consistency must be actively created rather than assumed.
Hamburg has a strong professional services and logistics economy, with above-average costs and solid income potential.
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 €31,080.
- 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 15%.
- Minimum annual living expenses are €18,300.
- 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, 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% | 301,604 | 201,114 | 457,538 | 12% | 63 |
| 5% | 418,466 | 273,015 | 649,647 | 41% | 62 |
| 7% | 590,285 | 378,265 | 949,571 | 79% | 60 |
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
