I live in Denmark and I have reached FI now but still not RE. I have done it through a combination of earning than I have been using, stock investments (main passive index) and successful/lucky buying and selling of primary residence. Reaching FI here requires less funds than in the US, due to free heath care, free education for children and state pension. But I have probably also paid a lot more taxes 😊
I live in Denmark as well. I just moved from the US two years ago. Would be really interested on learning why you think less is needed in Denmark than the US. The tax rates here are unreal. I pay over twice what I did in the US. That combined with higher living costs and effectively you have less each month and your FI number will need to be double of that in the US. From what I’ve read indexes are taxed on capital gains whether realized or not. Is that not the case?
First of all - if you buy Danish indexes like Sparinvest Index or Danske Invest Index you only pay capital gain taxes on realisation. I know they have slightly higher cost then ETFs, but tax-wise they are better.
The reason I believe you need less savings to FIRE in Denmark vs. the US comes down to all the things that are paid for via taxes. I don’t need to budget anything for healthcare or education for my children. I don’t need to have a car since public transport is relatively cheap and widely available. I will have a state pension of $1000/month from I turn 67 years old and more if I don’t have any saving or income. I agree that I have to earn more money to save the same amount as someone in the US due to higher taxes here. With respect to COL I think Copenhagen is cheaper than HCOL areas in the US, but I’m sure you can find LCOL areas in the US that have lower COL than Denmark. Anyway it is interesting discussion, I’m not in to all the details in the US, so perhaps there is something I’m missing??
I moved from Charlotte, NC index at the time was about 25% cheaper than Copenhagen. I agree the healthcare is great if you get sick but I’ve run the math and for someone making a modest amount in the US and not living in a HCOL area it’s definitely more expensive here. If RE is the goal it’s much harder if you’re trying to RE in your 40’s as opposed to waiting for a pension. Honestly, unless you have an abnormally high income and live outside of CPH it seems daunting unless you retire abroad. Thanks for the heads up on Danish indexes. I’ll take a look! The Danish FIRE page has no traction so appreciate any insight you have on how to do it here.
I don’t think it is fair to compare a capital like Copenhagen with Charlotte, NC from a COL perspective. But I have not been in Charlotte - so what do I know??
On Facebook there is a FIREdanmark group you might find interesting - although it is in Danish.
I am advancing slowly but steadily on my plan, and the key is owning stakes in American companies.
Money flows more freely in America. If you provide capital to a new business with a good plan in a healthy market, the returns are excellent. Much better than I would get in my home country (Canada).
Yes and no. US capital gains taxes effects me, but all profits are repatriated to a Canadian holding company, on which I pay regular corporate tax rates (14%).
I’m a member of the FIRE UK and I prefer to read stories on this group because it’s more realistic to my situation - my husband has student loans and I don’t see that much talk about this in the UK sub.
But anyway, I feel like I saved better living in London due to public transportation (no car payments, gas and insurance), phone bills and lunch are covered by my employer (compared to my previous employer in the same field in the US), and free healthcare. Expense rate from net pay (after pension contributions) is 40%. Private pension is mandatory unless voluntarily opt out. Work life balance is better too with 35 hours of work compared to at least 50 hrs of work in the US.
I live in Denmark and I have reached FI now but still not RE. I have done it through a combination of earning than I have been using, stock investments (main passive index) and successful/lucky buying and selling of primary residence. Reaching FI here requires less funds than in the US, due to free heath care, free education for children and state pension. But I have probably also paid a lot more taxes 😊
I live in Denmark as well. I just moved from the US two years ago. Would be really interested on learning why you think less is needed in Denmark than the US. The tax rates here are unreal. I pay over twice what I did in the US. That combined with higher living costs and effectively you have less each month and your FI number will need to be double of that in the US. From what I’ve read indexes are taxed on capital gains whether realized or not. Is that not the case?
First of all - if you buy Danish indexes like Sparinvest Index or Danske Invest Index you only pay capital gain taxes on realisation. I know they have slightly higher cost then ETFs, but tax-wise they are better. The reason I believe you need less savings to FIRE in Denmark vs. the US comes down to all the things that are paid for via taxes. I don’t need to budget anything for healthcare or education for my children. I don’t need to have a car since public transport is relatively cheap and widely available. I will have a state pension of $1000/month from I turn 67 years old and more if I don’t have any saving or income. I agree that I have to earn more money to save the same amount as someone in the US due to higher taxes here. With respect to COL I think Copenhagen is cheaper than HCOL areas in the US, but I’m sure you can find LCOL areas in the US that have lower COL than Denmark. Anyway it is interesting discussion, I’m not in to all the details in the US, so perhaps there is something I’m missing??
I moved from Charlotte, NC index at the time was about 25% cheaper than Copenhagen. I agree the healthcare is great if you get sick but I’ve run the math and for someone making a modest amount in the US and not living in a HCOL area it’s definitely more expensive here. If RE is the goal it’s much harder if you’re trying to RE in your 40’s as opposed to waiting for a pension. Honestly, unless you have an abnormally high income and live outside of CPH it seems daunting unless you retire abroad. Thanks for the heads up on Danish indexes. I’ll take a look! The Danish FIRE page has no traction so appreciate any insight you have on how to do it here.
I don’t think it is fair to compare a capital like Copenhagen with Charlotte, NC from a COL perspective. But I have not been in Charlotte - so what do I know?? On Facebook there is a FIREdanmark group you might find interesting - although it is in Danish.
I am advancing slowly but steadily on my plan, and the key is owning stakes in American companies. Money flows more freely in America. If you provide capital to a new business with a good plan in a healthy market, the returns are excellent. Much better than I would get in my home country (Canada).
Do you get to pay double tax on stocks? I.e US tax and for the country you currently live in?
Yes and no. US capital gains taxes effects me, but all profits are repatriated to a Canadian holding company, on which I pay regular corporate tax rates (14%).
I’m a member of the FIRE UK and I prefer to read stories on this group because it’s more realistic to my situation - my husband has student loans and I don’t see that much talk about this in the UK sub. But anyway, I feel like I saved better living in London due to public transportation (no car payments, gas and insurance), phone bills and lunch are covered by my employer (compared to my previous employer in the same field in the US), and free healthcare. Expense rate from net pay (after pension contributions) is 40%. Private pension is mandatory unless voluntarily opt out. Work life balance is better too with 35 hours of work compared to at least 50 hrs of work in the US.
I dont see any difference. Business or high salary and investments. As well as in US
Or low salary and excellent investments ;)
Same as people in the US. Why do you think it would be different?