Nordic Capital: No slowdown outside the stock market


Sparekonomen: This is how you can become financially independent

Published: October 11, 2022, 10:00 a.m. Updated: October 13, 2022, 09:51 a.m.Nicklas Andersson, savings economist Avanza. Financial security. Better pension. Or to stop working a little earlier? There are many reasons for wanting to become financially independent on the stock market. But how do you succeed, what type of shares should you invest in – and how big a role does the occupational pension play? The abbreviation FIRE (Financial Independence, Retire Early) has in recent years become something of a subculture. The idea is to take control of your own time by building a fortune in the stock market and instead live on the returns from the portfolio. And the longer you have, the easier it is to reach that goal. – Time and return are powerful factors that can turn even modest savings into impressive sums over time. With a large sum in the account, it is then possible to live on passive income from your portfolio. Either by selling 4% of your holdings every year, also known as the four percent rule, or by building a dividend portfolio, explains Nicklas Andersson, savings economist at Avanza. Can you get 1 million more in retirement? Try it right away! Here, Avanza searches for your old pensions for you – and shows what you can gain by moving them. Building a dividend portfolioIn concrete terms, living on passive income is about putting together a dividend portfolio. Let’s assume you find 15 stocks that together give the portfolio a dividend yield of 5%. For every thousand Swedish kroner you invest, it means that you can expect an annual dividend of SEK 50, says Nicklas Andersson. – Let’s say you become financially free with an income of SEK 25,000 a month. This corresponds to an annual income of SEK 300,000. If we assume that the dividend portfolio will give a direct return of 5%, you need SEK 6 million in total capital.Move the pension from scale contributionsIt may also pay to review your occupational pensions. Substantial. Several actors in the pension industry charge fixed annual scale fees, which means that the money ends up in the insurance company’s pockets instead of your own, says Nicklas Andersson. – It is so unnecessary. A seemingly low scale fee of 0.65 percent per year can mean that you get 1 million less to live on as a pensioner. Some occupational pensions can be withdrawn as early as age 55, so a good one can help you reach financial freedom a little earlier. Therefore, it is very important that you review your pensions and move them to an actor without scale fees, he says.Which pensions can be transferred?Last year, a long-awaited bill came into effect. This means that it may cost a maximum of SEK 600 to move a non-collectively agreed occupational pension to another actor. The proposal includes unit-linked insurance and deposit insurance (not traditional insurance) taken out after 2007. – Many do not know where their occupational pensions are, or what they would save by moving them, but with digitization it is easier than ever. Give it a couple of minutes, it can give you 1 million more, says Nicklas Andersson. Let Avanza search your old pensions – and see immediately if they can be moved or not. It only takes a couple of minutes. To reach 6 million on the stock market:It may feel unattainable to raise SEK 6 million on the stock market. But with the interest on interest effect, the barrier is lowered considerably – and it can happen faster than many people think. – If you save SEK 5,000 a month and expect an annual return of 7%, you will have SEK 6 million in the account after about 30 years , says Nicklas Andersson. Risk text:Historical returns are no guarantee of future returns. An investment in securities/funds can both increase and decrease in value and it is not certain that you will get the invested capital back. The return may also increase or decrease due to changes in the exchange rate. We reserve the right for any errors in the share and fund information provided on this page. *The new rules for reduced fees apply to all fund or deposit insurances, not traditional insurances, taken out after July 1, 2007. Please note that you cannot transfer collectively agreed occupational pensions to us such as SAF-LO, KAP-KL, PA03 (PA16) or ITP (ITPK). Avanza offers a moving fee of up to SEK 1,000. Read more and see how we calculated here. The article is produced by Brand Studio in collaboration with Avanza and not an article by Dagens industri

Click to rate this post!
[Total: 0 Average: 0]
Next Post

CoinEx as a sponsor of the Blockchain Land in Nueva León, Mexico!

One of the most anticipated crypto events of 2022 has come to an end, the Blockchain Land, arrived in Monterrey, Mexico, from October 05 to 07, and included the participation of the most influential people in the world, with CoinEx present as a sponsor. Nobody stops this cryptocurrency exchange in […]

Subscribe US Now