Check out my new blog dealing with early retirement in Europe at earlyretirementineurope.com.
Early Retirement in Europe
Fantastic to hear! I have always missed the European angle to much of the discussion here. You are starting really early, good for you.
Just read through your first three posts, if I may ask:
- how does one get an income of 2.4k euros for doing a PhD? Is that a student grant or something? Is that pre or post tax?
- 5% yield increase every year sounds pretty steep, considering the effect of compounding. I assume you are doing that to beat inflation? Speaking of which, 2% sounds safe for now within the EU. Let's hope it stays low.
- here in Finland, banks charge outrageous fees for mutual funds. And the "#%&* have got together to NOT offer any index/low-cost fund options. I've held an an emerging markets fund for 4+ years now and the only one making money is my bank. Year after year nearly all of the returns get taken by then as fees. I absolutely hate it and am just waiting it out for a better bank after I have moved next. So all info you can reveal on the best deals and lowest fees you are able to find would be of immense interest. If I can find a country with competitive pricing like in USA I'd love to move there if possible (luckily I work in IT and am not averse to living the consultant life, so only national language tends to be a barrier).
- man, I so miss the tax-free bonds they used to have in California. If you ever hear of something similar, let us know!
- I like your plan to rebalance using fresh money. Given your plan to retire in your 30s, I suppose a stage-of-life rebalancing can wait for later.
Good luck on your blogging and more importantly.. for the ER Plan!
Just read through your first three posts, if I may ask:
- how does one get an income of 2.4k euros for doing a PhD? Is that a student grant or something? Is that pre or post tax?
- 5% yield increase every year sounds pretty steep, considering the effect of compounding. I assume you are doing that to beat inflation? Speaking of which, 2% sounds safe for now within the EU. Let's hope it stays low.
- here in Finland, banks charge outrageous fees for mutual funds. And the "#%&* have got together to NOT offer any index/low-cost fund options. I've held an an emerging markets fund for 4+ years now and the only one making money is my bank. Year after year nearly all of the returns get taken by then as fees. I absolutely hate it and am just waiting it out for a better bank after I have moved next. So all info you can reveal on the best deals and lowest fees you are able to find would be of immense interest. If I can find a country with competitive pricing like in USA I'd love to move there if possible (luckily I work in IT and am not averse to living the consultant life, so only national language tends to be a barrier).
- man, I so miss the tax-free bonds they used to have in California. If you ever hear of something similar, let us know!
- I like your plan to rebalance using fresh money. Given your plan to retire in your 30s, I suppose a stage-of-life rebalancing can wait for later.
Good luck on your blogging and more importantly.. for the ER Plan!
Hi ktn, thanks for your post. I have answered at http://www.earlyretirementineurope.com/ ... l#comments (like to have some traffic at my blog, too 
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jacob
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I think most countries have something akin to the 401k and the IRA. They just have other names. Denmark for instance has the tax advantaged Kapital Pension (asset retirement plan). It's hard to believe that similar tax advantaged savings accounts don't exist elsewhere.
Incidentally, I've kept the book "international" in that regard---it even has temperatures in Celcius as well (also Fahrenheit for those backward countries west of the pond ).
Incidentally, I've kept the book "international" in that regard---it even has temperatures in Celcius as well (also Fahrenheit for those backward countries west of the pond
).@ Don Emanuel:
I only know that these capital refundings by Deutsche Telekom are free of tax in Germany and Austria. (same is true for some other German stocks such as Deutsche Post)
But I think this might also be the case in other EU countries, depends completely on how capital refundings are taxed there.
@ Jacob:
In Austria there is a tax advantaged pension plan as well (called "Zukunftsvorsorge"). But it's very inflexible, does not allow early retirement and limits yearly savings to approx. 2,300 EUR per year. It was more designed to supplement governmental pension schemes which I rather doubt I could rely on when reaching regular retirement age (in Austria: 65).
I think the situation in Germany is pretty similar with the "Riester Rente".
I only know that these capital refundings by Deutsche Telekom are free of tax in Germany and Austria. (same is true for some other German stocks such as Deutsche Post)
But I think this might also be the case in other EU countries, depends completely on how capital refundings are taxed there.
@ Jacob:
In Austria there is a tax advantaged pension plan as well (called "Zukunftsvorsorge"). But it's very inflexible, does not allow early retirement and limits yearly savings to approx. 2,300 EUR per year. It was more designed to supplement governmental pension schemes which I rather doubt I could rely on when reaching regular retirement age (in Austria: 65).
I think the situation in Germany is pretty similar with the "Riester Rente".