Financial independence in sight – path to a 4 million nest egg

 Five months after landing new job I have finally start coming to my senses after nightmare I have been in the last job with Iranian boss for the past three years. The change has been transformative—not only for daily well-being but also for the practical steps toward financial independence.

 I have now started investing my severance package into bonds.  This is part of achieving 60/40 allocation (stocks /bonds), as I am currently ten years out achieving my financial independence.

 This has following assumptions:

•         Expected real (ex-inflation) return on stocks: 3% per year
•  Expected real return on bonds: 1% per year
•  Annual savings capacity: Approximately $52,000 USD per year through a combination of company pension contributions and personal savings, while covering living expenses from current income.

By next year the portfolio is expected to sit near a 73/27 stocks-to-bonds allocation. If the new role remains stable and markets perform roughly in line with the assumptions above, the equity weighting should gradually decline toward approximately 83/17 over time as the bond allocation grows and additional contributions are made. This trajectory is designed to reach a $4 million nest egg (in 2026 dollars).

The $40 Trillion Shadow: Why Debt Cancellation Is Not a Free Lunch for Those Building Wealth

 A recent New York Post piece floated an old idea with a modern twist: cancelling the U.S. national debt, framing it as “An Ancient Sumerian Solution to Our $40 Trillion Debt.” The argument treats debt as a purely human-made accounting system that can simply be reset. While money is indeed a social construct, claims on real resources are not. Canceling $40 trillion in public debt would not make those resources disappear—it would redistribute who owns them.

Imagine the impact on pension funds, individual retirement accounts, insurance companies, and households that hold government bonds. The losses would also hit currency holders through higher inflation. This is one reason gold has been trading near $4,400–$4,700 per troy ounce (31.1 grams) in recent months—investors are seeking an inflation hedge and a store of value outside the traditional system.

The real question is not “Can we cancel the debt?” Of course, a government can attempt it. The better question for anyone focused on financial independence is: “Who gets robbed when we do?”  Historical Precedents Offer Caution, Not Comfort.

 History provides a few instructive examples:

August 2026 update ($1,487,764 +$41,551 or +2.9%)

↑ Emerging Markets Stock Index Fund is up by $5,534 or +2.4%
↑ Eurozone Stock Index Fund is up by $2,406 or +0.9% 
↑ Standard and Poor’s 500 Index Fund is up by $15,276 or +2.7% 
↑ Global Small Cap is up by $6,604 or +2.9%
↑ Growth fund is up by $4,930 or +4.3%
↑ Additional investment savings $2,500
↑ EUR to USD is up by 0.9% or for my portfolio $4,302
Total gains: $41,551

July 2026 update ($1,446,213 -$14,253 or -1.0 %)

↑ Additional investment savings $2,500
↑ GBP to USD is up by 1.5% or for my portfolio $1,688
Total gains: $4,188

↓ Emerging Markets Stock Index Fund is down by $8,563 or -3.6%
↓ Eurozone Stock Index Fund is down by $1,701  or -0.7%
↓ Standard and Poor’s 500 Index Fund is down by $513 or -0.1%
↓ Global Small Cap is down by $5,607 or -2.4%
↓ Growth fund is down by $2,058 or -1.8%
Total losses: 18,441    

 

June 2026 update ($1,460,466 +$10,584 or +0.7%)

↑ Emerging Markets Stock Index Fund is up by $1,443 or +0.6%
↑ Eurozone Stock Index Fund is up by $11,345 or +4.6% 
↑ Global Small Cap is up by $4,316 or +1.9%
↑ Additional investment savings $2,500
Total gains: $19,604

↓ Standard and Poor’s 500 Index Fund is down by $2,404 or -0.4% 
↓ Growth fund is down by $575 or -0.5%
↓ EUR to USD is down by 0.9% or for my portfolio $4,322
↓ GBP to USD is down by 1.5% or for my portfolio $1,719
Total losses: 9,020    

  

May 2026 update ($1,449,882 +$75,719 or +5.5%)

↑ Emerging Markets Stock Index Fund is up by $22,568 or +10.4%
↑ Eurozone Stock Index Fund is up by $10,072 or +4.2% 
↑ Standard and Poor’s 500 Index Fund is up by $25,257 or +4.6% 
↑ Global Small Cap is up by $7,876 or +3.6%
↑ Growth fund is up $7,445 or +6.8%
↑ Additional investment savings $2,500
Total gains: $75,719

Buying vs investing and renting a house

 Ten years ago, I bought a house with a twenty-year mortgage.  It has been an emotional decision and, as I am about to become mortgage free, I would like to share some considerations and costs.

 

I will look at it as an investment and compare it with other investment opportunities.

 

House bought in 2016 for 475,000. House cost in 2026: 600,000

 

Total money paid:

• Initial deposit: 150,000
• Legal cost and tax: 14,500 (1,500 + 13,000)
• Three one off over payments over years: 34,000
• Monthly payments over ten years: 211,000
• Total paid to the bank:  395,000 plus initial cost 15,000

 

Still owe: 130,000 to the bank. Interest paid: 50,000

 

My preference was to lock the mortgage as fixed interest.  First five years the mortgage interest was 2.7%, the last five years 1.4%. I have also maintained monthly payments the same from the beginning, even with all over payments. Last year I was overpaying 400 a month.  The house grew in value 125,000 over ten years or 2.3% a year. 

 

We bought it emotionally and the sellers’ agent used our feelings to full extend – we overpaid 25,000 over sticker price. This is despite that we had no ongoing chain – the seller got their money straight away, without any waiting.

 

Opportunity cost.