Varied parameter
Investment return (expected)
3% → 7%
Investment Return Comparison
Software engineer in Munich · The steady builder
This page compares financial outcomes for a Software engineer living in Munich, Germany, following the The steady builder life scenario.
A balanced financial life built on predictable income growth, consistent saving, and long-term market participation. Progress comes from patience, stability, and compounding over time.
Munich offers very strong income potential in high-skill sectors, along with some of the highest living costs in Germany.
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 €33,040.
- 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 20%.
- Minimum annual living expenses are €19,500.
- 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% | 426,372 | 287,229 | 645,772 | 37% | 62 |
| 5% | 591,700 | 389,404 | 913,612 | 74% | 60 |
| 7% | 838,218 | 537,998 | 1,324,720 | 96% | 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
