Krass verdienen und mit 40 in Rente: Klappt das? (#289)
The hosts analyze whether retiring at 40 is possible using footballer Lothar Matthäus as a case study, calculating that despite earning millions and saving 20% in ETFs, lifestyle inflation makes true early retirement challenging. They conclude that even with 4.87 million euros saved, the reduced income would only last until age 85 and represents a significant lifestyle downgrade.
Summary
This episode explores the feasibility of early retirement at 40 using a detailed financial analysis of German football legend Lothar Matthäus's career earnings. The hosts calculated what would have happened if Matthäus had followed a 50/30/20 budgeting rule (50% living costs, 30% lifestyle, 20% savings) and invested 15% in stock ETFs and 5% in savings accounts. Starting with 30,000 marks annually at Borussia Mönchengladbach in the early 1980s, his salary peaked at 1.5 million marks in Italy and later $1 million in the US. Despite earning millions over his 22-year career and maintaining a 20% savings rate, the analysis shows he would have accumulated 4.87 million euros by age 40. However, this would only support a retirement income of 12,500 euros monthly (using a 3.5% withdrawal rate) compared to his peak luxury budget of 450,000 marks annually. The hosts emphasize the challenge of lifestyle inflation, noting that once accustomed to high spending levels, it becomes extremely difficult to scale back. They calculated that this retirement fund would last until age 85, after which it would be depleted. The discussion extends beyond this extreme example to practical advice about gradual career transitions, part-time work options, and the importance of conscious spending decisions. The episode concludes with listener Q&A covering topics like tax exemption orders versus tax returns for investment gains, how often to switch savings accounts, and overcoming fear when implementing financial strategies.
About this episode
Erst 20 Jahre lang gut verdienen, dann mit 40 in Rente gehen. Klappt das? Das diskutieren Saidi und Emil von Finanztip in dieser Folge Finanzen ganz einfach. Und zwar mit Zahlen aus der Realität – nämlich den Spielergehältern von Lothar Matthäus, die der selbst veröffentlicht hat.
Key Insights
- Even with extremely high earnings and a 20% savings rate over 22 years, Lothar Matthäus would have needed to dramatically reduce his lifestyle in retirement, going from a luxury budget of 450,000 marks annually to 12,500 euros monthly
- The hosts demonstrate that lifestyle inflation is psychologically powerful, arguing that people become accustomed to higher spending levels within just 3 years and find it extremely difficult to scale back
- Their calculation shows that 4.87 million euros accumulated through disciplined ETF investing would only last until age 85 using a 3.5% withdrawal rate, highlighting the challenge of funding very long retirements
- The hosts argue that the shortened 22-year earning period of professional athletes makes wealth accumulation more difficult compared to traditional 40+ year careers, despite the higher absolute earnings
- They suggest that rather than complete early retirement, a more practical approach involves building wealth to enable part-time work and gradual career transitions, gaining life quality without complete financial independence
Topics
Transcript
What do you think is the dream of many of our listeners and viewers? Wow, that's so funny. A dream. A dream of a home of your own, a dream of a great car, a dream of an absolutely happy, unique partnership. Better. Earn fat and go into retirement at 40. Okay, just have to lie on the pool. Exactly. Okay. At 40. That's challenging. It sounds great. But the question is, of course, does that work and how much do you need for that? Oh, spoiler. A whole lot. What kind of amount? Let's take a look at Finanzen ganz einfach with Saidi and Emil from Finanztipp. And that's a real example. Oh, wow. At Finanztipp we think you…
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