400k euros at 35 and unemployed: young investor's dilemma

€400,000 at age 35 and unemployed: the dilemma of a young Basque investor

An engineer aged between 30 and 35, originally from the Basque Country, has accumulated a net worth of €400,000 in just seven years. The capital stems from a salary exceeding €50,000, non-taxable travel allowances (dietas) under Spanish income tax (IRPF), and an index fund investment strategy since 2020. After receiving a severance package over €50,000, he is currently unemployed, with minimal expenses as he lives in an inherited apartment. The dilemma: what to do with his financial freedom.

The profile of the express saver

The capital accumulation was not luck, but a combination of favorable circumstances. A base salary above €50,000, daily allowances of €100-130 for work abroad taxed at 10-15%, and the ability to live with parents until age 30. Additionally, early investing began in March 2020, directing 80% of income into global index funds, achieving market-compliant returns. His portfolio consists of 80% equities (75% funds, 25% stocks) and 20% liquidity and fixed income. After seven years, the result is €400,000, of which approximately €20,000-30,000 would be latent taxes.

Options on the table: from pharmacy to garden

Business ideas considered range from buying a tobacco shop (estanco) to opening a pharmacy in a small town, including lottery offices, VTC services, bakeries, and even an MMA gym. However, all face two obstacles: high required capital (a pharmacy costs at least €300,000) and his lack of sector knowledge. Some advisors encourage him to start carpentry, leveraging his mechanics and IT skills, beginning in the garage. Others recommend emigrating to Asia: "With $470,000, a fixed deposit at 3.5% yields $1,350 monthly. In Thailand, you live like a king."

Existential debate: early retirement or returning to career

Opinions divide between those who see him ready for modest retirement and those considering €400,000 insufficient at age 35. "If you invest everything in dividends, you get €1,000 monthly. With your paid-off home, life is solved," argue some. Opponents remind him of decades ahead and risks without stable income. "You need several years of secure income. 35 is not the same as 50," they assert. The debate turns personal: his demanding partner requirements (Christian, no social media, traditional customs) reflect a search for values clashing with today's marriage market. "If I had been born 80 years ago, I'd already have a vvife and children," he confesses.

Open ending

With €400,000 and a owned apartment, his outlook is enviable. But loneliness, faith, and social expectations complicate the equation. His final inclination points toward manual work: "Something simple, like carpentry, that I can start in the garage." This path, if successful, could keep him away from salaried employment forever.