Greetings From Denmark

[herp]

Hello everyone!

Having just discovered this great forum yesterday, I was excited to sign up. I'm especially interested in reading about progress made by other danes as I find it very helpful to fully take advantage of the options available.

A few years ago, I got serious about my personal finances. I've always been frugal, but I never really got into investing until that point.

I'm in my early 30's and working full time. Single and renting for now since the rent is quite reasonable for my area. I'm open to buying an apartment or a small house down the road, but probably not in the immediate future.

At work, I have a retirement plan which on its own just about maxes out the tax-advantaged space in "ratepension". I max out the other retirement account available to us danes ("aldersopsparing") as well, and in addition to that I save a big chunk of my salary in normal taxable accounts at Nordnet + Degiro where I invest in bonds and stocks. I'm not sure exactly what my savings rate is, but it's at least 35%.

My goal is to fully retire no later than two decades down the road. If things go really well, I might consider getting a part time job before that point, but that's a decision to be made far into the future.

FWIW, my net worth is currently about 17% of where I would like to end up and it has more than doubled in a few years, so I think I'm well on track.

My asset allocation across all of my accounts roughly looks as follows:

58% stocks
10% bonds
32% cash

I hold a lot of cash as investment grade bond yields are so low right now that savings accounts paying close to 1% are just more attractive - no interest rate risk or credit risk for similar yield.

The stocks are mostly held in low cost index funds with a small chunk of hand picked value stocks. The stock picks make up just over 10% of my current net worth. I plan to invest much more heavily in value stocks in the near future, but my overall allocations to stocks/bonds/cash won't change too much as my investment policy statement has defined how much risk I am going to take.

That's about all I can think of for now. Looking forward to interacting with you all!

[wolf]

Hello Herp,

nice to have you here on the ERE Forum. Welcome.

May I ask you what your current and planned withdrawal rate is?

[Eureka]

Welcome herp,

The more Danes, the merrier!

I guess, (one of) the best opportunities to make passive income in Denmark is to buy an apartment you are living in - at least for some period of time - and then sell it again when value is up as the profit is tax free.

Looking forward to following your journey.

[herp]

@MDFFIRE2024,

Thanks! I haven't actually calculated my current withdrawal rate, but at my desired retirement spending (incl. taxes) it would account for 23% of my current net worth.

My planned withdrawal rate is in the region of 3-3.5%.

@Eureka,

Thanks for the welcome!

Buying an apartment is one of the big financial decisions that I often ponder, but at the moment I just can't see the math working in my favor. The mortgage alone would be higher than my current rent and then we haven't even considered property taxes and maintenance. It's definitely something to keep in mind, though.