Varied parameter
Investment return (expected)
3% → 7%
Investment Return Comparison
Software engineer in Romania · The steady builder
This page compares financial outcomes for a Software engineer living in Romania, 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.
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 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% | 604,221.395 | 401,410.486 | 910,331.8929999999 | 100% | 50 |
| 5% | 848,020.225 | 549,911.1699999999 | 1,301,330.289 | 100% | 48 |
| 7% | 1,225,442.645 | 784,503.463 | 1,918,477.708 | 100% | 46 |
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
