I'm in my mid 20s and have the opportunity to be a well paid tutor (6 figures) to the very wealthy in a country abroad, on top of my salary my accommodation and travel is paid for too. Tax is very low where I'll be located, I have no debts or dependents and food/going out is cheap so even if I live well I'll be able to realistically save $80,000 per year.
I intend to put this entire sum into index tracker funds. The S&P500 has historically been returning 11% py, at that return I'd have just over $1m in 8 years. Even if was 7% then I'd still have just under $900k.
At this point I'd like to start travelling indefinitely, with the goal of visiting every country in the world and enjoying myself along the way. I believe that $50k per year would be more than enough to do this. With my $1m invested, I intend to take that $50k each year from the interest. If it's a bad year in the market I can always get a temp summer tutoring job that would pay almost $20k to help stop me from eating into the $1m.
To do this, I would be giving up the opportunity to carve myself a proper career now so I have to be confident it will work. So my question to personal finance is what are the problems with this plan? Do you think it's realistic?
The major issue I can think of is relying on the market for interest as there are no guarantees it will continue up. But other than that I think it's quite a solid plan. Happy to hear what you guys think.
Submitted September 07, 2017 at 08:50AM by I_Am_Kylo_Ren_AMA http://ift.tt/2wbbzbQ
