Hello fellow mustachians. I need advise. I’ve been fortunate enough to earn a small fortune very early in my life. I’m sitting on a $1.8M stash at age 26. I acknowledge that I need as much help as possible to place this to its best long term potential. I want to “retire” at age 30, and from what I can read here that should be possible. At 30 I will with 95% certainty have a 2M$ stash or a bit more.
I’m not sure where to start, so I guess ill start with the facts.
Where?: I live in Denmark and want to keep living here, which means very high taxes ( min. 40% tax on all income). I live in an apartment in the second largest city, where I also work. I’ve been spending about 60k$ yearly so far, but can easily shave off a lot if/when necessary.
Where are my money now?:
My apartment is valued at about 715.000$ with no debt(maybe a bit too much of my stash here), and I rent out a room here to a good friend for 7500$ yearly. That covers almost all utilities/taxes/insurance on the place.
My old apartment(same city) is valued at about 450k$ with a 350k$ mortgage. It brings in 7300$ yearly after expenses+interest, but before paying anything off of the debt.
I bought an apartment for my mother valued 200k$, she lives there for free, but pays all expenses associated with living there. This made so much room in her budget to do other things with her life that is of great value for her, so this investment will keep in place.
800k$ in index funds. Following the 4% rule this would mean a yearly 32k$ return? Before taxes! So I guess I can expect roughly 18-20k$ after taxes
I’m strongly considering buying a larger property from some of my index$+ future income. With a ~70% financing, it seems to yield a higher return in the long run than the 4% from stocks/bonds.
I’m trying to suck in as much knowledge about investing as possible, as i understand the decisions I take in these years will have an exponential impact on my future financial independence. So here I am. Any suggestions on optimization, comments, ideas?
Thanks for reading
S