Varied parameter
Investment return (expected)
3% → 7%
Investment Return Comparison
Software engineer in Romania · Starting late
This page compares financial outcomes for a Software engineer living in Romania, following the Starting late life scenario.
A financial life that begins later, leaving fewer years for compounding to work. Success relies on disciplined saving, steady income, and sustained focus over a shorter horizon.
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 40 and runs until age 65.
- The initial annual income is €30,800.
- 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, 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.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 3% | 305,553.44 | 214,358.968 | 433,298.80600000004 | 89% | 60 |
| 5% | 391,682.44 | 270,871.584 | 565,645.804 | 99% | 58 |
| 7% | 508,380.805 | 351,151.85199999996 | 746,980.599 | 99% | 56 |
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
