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The Local _ Miscellaneous _ How much do you need to retire

Posted by: rorre 16.Jan.2018, 10:59 PM

Hi,
would you retire and never have to do a normal job again without any second thoughts, if you have 10 million swedish sek, or would 20 million sek enough (after tax) to have a very comforting family life with decent life style?
In your honest opinion, At what amount, would you consider quitting your job in sweden, and never having to do the routine job from 8 to 5 and do something fun, social service, etc
are there any statistics of number of millionaires in sweden , like the one below for billionaires, http://www.wikiwand.com/en/List_of_Swedes_by_net_worth
Any opinions are welcome! smile.gif
Thanks in advance.

Posted by: Savage 17.Jan.2018, 12:13 AM

Just want to point out, that many of the millionaires in the list don't live in Sweden. With many like the Tetrapak heirs living abroad, because of the cost of living in Sweden being too high

Posted by: Bsmith 17.Jan.2018, 12:27 AM

Be enough for me. Please PM me for the details of who to make the check out to.

Posted by: Gjeebes 17.Jan.2018, 06:59 AM

"millionaires in sweden"

Are you talking SEK? 1 million SEK is essentially just 100,000 units in any other currency worthy of comparison.

You need at least 10 million SEK, to be a "real" millionaire.

Posted by: Essingen55 17.Jan.2018, 09:49 AM

Most people could manage comfortably on the current break-even point for 50% tax in Sweden...around SEK 450,000. This would give you about SEK 30,000 a month in income...about SEK 1,000 a day for everything. Given that the average life length is around 88 years, deduct the age you want to retire from 88 and multiply by 450,000.

e.g. Retire at 65 means needing 88-65 = 23 x 450,000 = SEK 10,350,000
Retire at 40 means needing 88-40 = 48 x 450,000 = SEK 21,600,000

These are the amounts of GROSS income. This is the bad news...now the even worse news is that you can easily see how much you have to date by looking in your orange pension envelope at the amount of your pot so far. You can deduct this amount and that is the amount of gross income left to find.

Posted by: Bsmith 17.Jan.2018, 11:28 AM

Face it, we're going to be working until our 70's.

Posted by: rorre 17.Jan.2018, 08:08 PM

Thank you guys for the replies.
@ Savage Ok so they stay out of sweden to avoid high taxes and high cost of living. do they have dual citizenships?
@ Gjeebes Yes, i was talking about 1 million SEK
@ BSmith lol..I am pretty sure mate, I aint going to work after 50s, that would be max.

@Essingen55 That is exactly the Calculation or figures i am looking for.

As a swedish citizen,what would be the smart move like few of the billionairs above,for a person who is going to get, say 30 million sek(from assets) and needs to pay 50 percent tax once it gets into the swedish bank account? would you pay the tax and stay in sweden(no special love or obligations to stay in sweden) or would you consider move to different country(which one?), to avoid the 50 percent cut.

Cheers!

Posted by: Bsmith 18.Jan.2018, 02:38 AM

If you can retire in your 50's good for you. I retired after 35 years of teaching at age 57 1/2 but after a year off I was a bit bored so I went back to work. Only 3 days a week, though. Not too bad.

Posted by: Cheeseroller 18.Jan.2018, 07:39 AM

The calculations above do not consider inflation over 88 years :-)

Posted by: Gjeebes 18.Jan.2018, 07:44 AM

Find the way to take "your" money, and run.

Do you really think "your" 15 million sek, the Nanny-state will claim, will be put to good use?

If so, pay it. If not, run for it!

Posted by: Essingen55 18.Jan.2018, 09:19 AM

QUOTE
The calculations above do not consider inflation over 88 years :-)


Assuming that you have the amounts stated at the ages stated, you should be able to invest the amounts in equities to deal with the inflation issue.

Posted by: rorre 18.Jan.2018, 09:15 PM

@ Bsmith Teaching since 22 yrs old of age and for 35 years Damn!! sure you liked your job and good at it. Not too many professions might leave as much vacuum after retiring such as teaching.
3 days a week work sounds perfect:) Perhaps that would be the future working hours in sweden after a decade, 5 hour work days or 3 day work week.
I get your point. I want to quit the normal 8-5 office job but still do some other work i enjoy more and is satisfying.

@ Gjeebes I am trying to find out that way. Havent figured it out yet.

Posted by: Bsmith 1.Jul.2018, 07:55 PM

QUOTE (rorre @ 18.Jan.2018, 08:15 PM) *
@ Bsmith Teaching since 22 yrs old of age and for 35 years Damn!! sure you liked your job and good at it. Not too many professions might leave as much vacuum after retiring such as teaching.
3 days a week work sounds perfect:) Perhaps that would be the future working hours in sweden after a decade, 5 hour work days or 3 day work week.
I get your point. I want to quit the normal 8-5 office job but still do some other work i enjoy more and is satisfying.

@ Gjeebes I am trying to find out that way. Havent figured it out yet.


I don't know your age but I cannot recommend strongly enough to save, save, save. Also, take advantage of any program your company offers that matches funds, or offers discounted stock, etc. If I had half the money I blew when I was young and had invested it...I would be a rich, rich man.


Did have fun though...

Posted by: john.boy 1.Jul.2018, 09:08 PM

Remember that pensions are taxable income. The best option right now, if you are a high income earner, is to aim to keep the final monthly pension below the State income tax level, place other monies into regular savings to build up funds there, if you place funds above the tax deduction level (reduced by the government) then remember it is taxed twice, once at payroll time and again when paid as pension. This is why it is better right now to just place into regular savings.

Better still, at pension age move to Portugal so you don't get taxed as heavily on your Swedish sourced pension rolleyes.gif

Posted by: Bsmith 2.Jul.2018, 11:39 AM

The problem is that no one knows what the future holds and how the rules might change in the intervening time. Better to have too much money than not enough.

Posted by: Mib 2.Jul.2018, 11:51 AM

It of course depends on your spending habits, but I think 20 million + would be the minimum, assuming you have no mortgage. Whatever your situation, I recommend (if possible) to save minimum 20% of your net income every month and invest those savings into index funds. Use the funds that have the lowest commission fees as research has shown that high commission fees can make a big dent in your investment. Also, they tend not to perform any better than the lower commission funds. As always DYOR smile.gif

One of the best investments you can make, is to be careful who you choose as a life partner. As separating/divorce is a big cost financially as well as emotionally. You should share a commonality in your attitude to money and sharing it with each other, if one earns more than another. I always recommend to keep separate accounts, as just psychologically, it can seem to be YOUR money to spend if you see just one account. You'll notice that when you save 20% each month, that it curtails your spending as you see less cash available after transferring it out to another account.

Finally, wherever possible, buy rather than rent. Over a lifetime, it's shown to more expensive to rent than buy. Plus if you're lucky, your property will be worth a lot more than you had anticipated.

Posted by: Bsmith 2.Jul.2018, 06:39 PM

QUOTE (Mib @ 2.Jul.2018, 10:51 AM) *
One of the best investments you can make, is to be careful who you choose as a life partner. As separating/divorce is a big cost financially as well as emotionally. You should share a commonality in your attitude to money and sharing it with each other, if one earns more than another. I always recommend to keep separate accounts, as just psychologically, it can seem to be YOUR money to spend if you see just one account. You'll notice that when you save 20% each month, that it curtails your spending as you see less cash available after transferring it out to another account.



Very, very true.

Posted by: Bsmith 17.Jul.2018, 10:28 PM

I think we all will be.

Posted by: SmokerT69 19.Jul.2018, 01:04 PM

If I ever get the right to live here, it will most likely be where we retire because it's so much cheaper than my home and my wifes family is all here. You need at least 2 million USD before you can even start looking at houses in Bermuda lol. Most likely end up going back home to work for a few years before retiring here. Can easily pull in around 65k USD a year doing basically nothing lol. I was making 25$ an hour tax free just driving a fork lift. There's no laws about overtime, so you can also work as much as you want, provided there's work. I use to do 60-70 hours a week leading up to Xmas to pay for my trips back and forth to Sweden a few times a year.

So, depending on where your coming from. Sweden can either seem really expensive to retire or very cheap. As for how much you need, just caculate your yearly expenses and leave enough extra to cover any unforseen problems.

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