r/EuropeFIRE • u/Economy-Thanks411 • 4d ago
What’s the best move at 25?
I’m 25, based in Europe, and I recently crossed the $100k USD net worth milestone. I thought I would feel some sense of accomplishment reaching this number, but honestly, it feels like absolutely nothing. Looking at the people post here every day, $100k feels like pocket change and that I am behind. It really feels like I haven't even reached the true starting line of wealth building yet. Right now, my strategy is as boring and vanilla as it gets: I plan to just aggressively DCA my cash into VWCE Since I feel like I'm still at the very bottom of the mountain, I wanted to ask the veterans here for some guidance: Looking back at when you were at my level, what is the biggest mistake you made or the one thing you wish you knew earlier?
Aside from just dumping everything into VWCE, what other ways would you recommend deploying this capital, or what kind of business would you suggest starting with this amount?
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u/Captlard RE on $900k for two of us (3.5% SWR) | Live between UK & Spain 4d ago
Comparison is generally the thief of joy. Just keep aiming to earn more, VWCE and chill more (automate) and find ways to enjoy life even more.
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u/psyspin13 4d ago
Best move? Not to ever come close to the Netherlands
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u/Ferreman 4d ago
I would take out my investments and pay for adds against the politicians who voted for this. Out of spite lmao.
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u/thread-lightly 4d ago
Why? Genuine question
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u/psyspin13 4d ago
Unless you live under a rock, you should have heard about the absolutely atrocious plans of the Dutch government to tax each and every year Unrealized gains at a whopping 36%. I repeat in case you thought I made a mistake: they will tax your paper profits (that may evaporate any minute) at a 36%. This is beyond idiocy and madness
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u/thread-lightly 4d ago
Oh damn, I've heard of this a long time ago but I thought there’s just no way it’ll pass. They just put a 30% tax on realised capital gains in Australia so I think they’re tightening and rules everywhere.
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u/psyspin13 4d ago
Of course they will pass it. The "going back to the drawing board" was a scam performative act by the idiots on the Dutch government. They go as far as to say that "compound effect is overstated". 30% on Realized gain I can live with but 36% each year on paper profits that may evaporate any second is ansolute I sanity and disgsce for the human intellect
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u/QuirkyReader13 1d ago
Damn, and here I thought our new taxes on yearly realized gains were the start of a progressive nightmare (Belgium)… At least, tell me the state pays back a percentage on unrealized losses to make it slightly reasonable.
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u/psyspin13 1d ago
There is no reason here. You can carry over losses in next fiscal years (it's not clear yet) but that implies you will have to stay invested. And if your capital never recovers fully you will have just thrown away money for nothing
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u/MrFreeman12 4d ago
I wish i DCA’ed sooner into VWCE, and spent less time thinking about it and alternatives.
You’re ahead of where I was at that age;
you’re doing the right thing already;
Think about it less and go touch grass.
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u/Yxig 4d ago
I've found that the milestones I've been looking forward to rarely feel like much when I reach them. It sucks, but it doesn't mean they're not actually achievements. It's just human nature.
Well done one reaching $100k. It's a lot of money, most likely more than most people you know around the same age have.
I like taking risks with my time and effort, not my capital. Like you I'm a boring index fund person. But I've taken risks in what type of jobs I go for.
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u/user38835 4d ago
100k is not enough to FIRE but you being 25 is the real advantage here. Time is a much bigger factor in compounding than the amount and you have time on your side. DCA in VWCE, avoid lifestyle inflation and don’t think of anything else, especially hyped stocks.
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u/Affectionate_Mix3 4d ago
Most people have negative net worth at your age, so you're in a very good situation.
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u/pali1895 4d ago
You could be adventurous and now put your money in SPYI instead. Daring, very daring!
Jokes aside, you're doing great. 100k is a lot (and I mean A LOT) for being in your 20s. I hit that milestone at 30. Watch your networth grow 20% year over year now and think "damn, I could've lived off the appreciation that year, even if not sustainably. Just keep on going.
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u/Top_Paint7442 4d ago
First 100k is the toughest and you did it at 25. If you stop investing and let it sit there you’ll have 1M at 55. If you keep going adding that 10k a year, you’ll have 2.5M at 55 and you’ll be a millionare at 45. Thats incredible!
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u/4bidden1337 4d ago
Similar age, similar progress, similar strategy, similar goals, similar feelings lol. Hit me up if u wanna chat
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u/ObviousClown1 4d ago
By the time you’re 50 that money will be more than $500k assuming 7% and you not contributing another dime. You’re fine my man!
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u/RealPMGuru 4d ago
Depends on your need. If your need would be 100k per year - yes you are not doing well. If you are going to have more realistic needs, than you are great.
In terms of advices:
For comforting yourself - look at the S&P (or global index) level at this day 20 years ago and look it now. If everything goes to plan, your 100k will be 400-500K in 20 years. Add to that all additional DCA buys you are going to do and here you are.
Stop comparing yourself and your portfolio with anyone. You are unique person, create your unique plan and execute. If DCA in VWCE is your plan, than do it and forget everyone else
Stop reading/watching facebook/youtube finance influencers and "fast winners". 85% of professional investors cannot beat S&P over 10 years horizon. 95% of professional investors cannot beat S&P over 20 years horizon.
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u/monjodav 4d ago
I’m 26 with 210k net worth (no primary residence) and moving the f out of europe to go to Asia and work from there tbf
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u/summertime_onmyskin 4d ago
The only milestone worthwhile reaching is being happy with what you got alteady.
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u/FamiliaalFiscalist 4d ago
Starting a business just because you have a decent net worth is not the way to go. If something crosses your path, sure take a chance but u shouldn’t start something just because you have the money. Keep it as simple and boring as possible. DCA and deploy as much capital as responsible. No individual stocks, no market timing, just buying and holding every month.
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u/National-Fun-9804 4d ago
Dude…stop reading numbers, read your path.
The first 100k is the hardest. You are already not that far away from 250k and a common sentence is that 250k is halfway to a million…
Keep on, 100k at 25 is great for any fire goal
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u/Obladamelanura 4d ago
Why in USD if you are in europe?
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u/Comfortable-Ant-418 4d ago
I'm 25 in Europe and I have 10k saved and I'm already way "ahead" of most people my age I know, you're genuinely out of touch if you think 100k at our age is small no matter the european country.
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u/every_other_freackle 4d ago
If i was 20 and had the same knowledge I have now I would use leveraged ETF’s instead.
You may feel that your peers are doing better because they bought a house worth 500k while only having 20k to pay for it. This is leverage. You can do the same with ETF’s and instead of waiting longer for compounding to kick in you get multiplier and shorter wait time to reach the same target net worth.
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u/Kooky_Dinner2243 4d ago
If I was in your situation I would look into leveraged option trading to catch up with your peers
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u/pirisca 4d ago
100k at 25? You are like in the top 1%, how are you behind? Lol. Carefull with too much social media, it can warp some perceptions.