We are 40/35yo couple, living in Russia, married, childfree, having our own apartment and no debt. We are both retired from the corporate world a few years ago with some savings and now run a small business which covers all our current expenses. Enjoy our lives and have no plans to conquer the world.
It was an era of high CD rates in Russia, which is ending now, so we plan to move our 500 kUSD retirement egg from CD’s and start a long-term investmentsvery soon.
Our plan is to invest into ETFs around 95% of our funds (last 5% will stay as en emergency fund in CD) and wait for around 10 years doing rebalancing only (no withdrawing). We hope that during this period our 500k will transform to 750k+ (around 4% annual return after inflation) and then to start withdraw each year with the aim to be out of funds 40 years later. Considering we will have some other small money streams like social security later in our lives we should have an opportunity to spend around 45-50 kUSD for next 40 years.
As soon as we live in Russia and around the half of our expenses are in roubles (and second half is mostly spent in dollars on our long-term annual travels and some online shopping), it makes sense to invest half of our money into the Russian market (mostly bonds plus some basic index fund), so we have some defence against currencies fluctuation. Other half of money will be invested to classic ETFs like Vanguard through some European broker in order to compose something like Permanent Portfolio (I haven’t figured out final details yet).
So my questions are
1) Does our plan look feasible from your point of view?
2) What is the best timing strategy to buy ETF in our case? I was thinking about buying 20% from total each 6 months, so the total time will be 2 years (We are 8 years into the bull market now and no-one knows what’s next.
3) If we will invest 20% after 20% should we buy all ETF components of our portfolio each time?
Thanks
Submitted February 20, 2017 at 01:35AM by AntonScott2 http://ift.tt/2llvmBi
