ETFmatic, EU’s Robo-Advising Platform

https://etfmatic.com

In the Western world, we hedonistically live. For many of my former working class cousins, all purchases were towards immediate gratification. We always had good parties, though few had the decency to plan for their future.

The goal of this story is early retirement planning for my cousins across the pond.

Several of my mates live outside of the USA and cannot legally invest in USA robo-advising platforms. Today, I researched and test surfed ETFmatic, a FinTech 100, European Union (EU), robo-advising platform.

The ETFmatic simulation mode has a Betterment feel. It’s a simple email confirmation then passphrase setup. Next, ETFmatic asks how much pain (risk) I was willing to accept and how much patience I had for the ongoing risk. I then setup an initial deposit of €500 and automated monthly deposits of €416.

Next, ETFmatic asked me what my retirement number was, so I used Networthify’s early retirement calculator based on one of my mates savings goals. The ETFmatic simulation mode’s projections use a similar model as Betterment’s based on Nobel Economics prize winning research, variable projection parameters, and historical investment data.

Here are my simulation inputs: 71% equities, 29% bonds, 100% financial discipline, initial deposit €500 and monthly deposits €416.

I set the simulation’s target goal at €802000. According to the projections, the average lump sum in 2047 will return €804000. This goal will enable me to live on €2430/month for the rest of my life. Tailor your expected annual expenses and goals using Networthify’s early retirement calculator.

http://networthify.com/calculator/earlyretirement?income=40000&initialBalance=0&expenses=35000&annualPct=5&withdrawalRate=4

ETFmatic like Betterment then projects variable earnings. It also gives total invested vs poor and good outcomes. Use MoneyChimp’s compounded annual growth rate (CAGR) calculator if curious about performance metrics.

http://www.moneychimp.com/calculator/discount_rate_calculator.htm

When you receive a bonus or annual raise then send the extras directly into the investment account. You were able to soundly live on the pre-raise and pre-bonus income so out of sight, retire earlier mind!!! 🤗

Every long term goal is challenging. In my wildest dreams, I never imagined I could have been alive past 30 yrs old let alone be retired in my 40s. Market willing, cousins starting today will have similar success going forward.

Start and/or continue with investing made simple with ETFmatic. I’d suggest all EU working class to open an ETFmatic account as soon as possible to garner the compounding interest time variable.

Setup the minimum €100 deposit then immediately establish a direct monthly deposit. For example, I started with 10% investing of monthly income then built up to 60% of monthly income. The more “mature” I became the more I realised a faster path towards early retirement vs “Keeping up with the Kardashians” was in my best interest.

When my cousins reach their target goals then you’ll have annual expenses covered for the rest of your natural life then feel free to enjoy a holiday with me in Southeast Asia! 🤣🤣🤣

My fee:

Pay the knowledge forward!

Every working person is capable of retiring early with a bit of patience, financial discipline, and loads of time. Take responsibility for YOUR financial independence.

The earlier we start investing for our early retirement then the sooner we can realise our early retirement goals. The more we save and invest now, market willing, all our mates will enjoy an early retirement too.

If you enjoyed my story then applaud and share with the community, family, and friends.

Disclaimer: I could be wrong. I’m not paid to recommend the products listed in the story.

Further reading

ETFmatic

Set long-term investment goals, automate contributions, and portfolio re-balancing to avoid suboptimal investor behaviour.

https://etfmatic.com/advantages

Irish Times ETFmatic review

excerpt

The minimum initial investment for ETFmatic, for example, is just €100. Portfolios with less than €25,000 carry a management fee of 0.5 per cent, falling to 0.3 per cent for portfolios above €25,000. The all-inclusive fee for an ETFmatic portfolio ranges from 0.4 to 0.85 per cent. Low fees mean the average investor could save a “life-changing” amount of money – “hundreds of thousands” – over a 30-year period, the firm says.

https://www.irishtimes.com/business/personal-finance/computer-says-invest-the-robo-advisers-are-coming-1.3029009?mode=amp

A full list of the EU’s robo-advisers

https://www.investitin.com/robo-advisors-europe/