Throwaway account. Apologies if the question is stupid, I read the sidebar but feel like my situation is fairly unique and couldn't find an answer.
I will be “retiring” in 18 months. After liquidating my assets and paying off my loans I will be left with the equivalent of around 750,000$ in cash. The plan is to then move into Southeast Asia and enjoy life. I am in my mid 20's so I will not be retiring in the conventional sense, but rather minimizing the amount of work I have to do for the rest of my life. I expect to work around 10-20 hours a week on projects of interest to me, and expect to make very little/no money from it.
I should be able to live comfortably in a large city in Southeast Asia for around 20k a year. How should I approach investing the 750k? Ideally I would like to live purely on the interest and not touch the initial investment at all to ensure longevity. Currently I am just planning on having a small emergency fund and then dumping the rest of it into ETF's (across several banks) and then taking out 10,000$ every six months. However, I doubt this is the most optimal solution so I would appreciate some assistance.
I am aware that a “safe” withdrawal rate is 4% and my rate would be only around 3%. I am very young so is there any logic in shooting for a withdrawal rate of 2% to ensure the initial investment is protected and that I am not broke by the time I hit 50? Also living costs in Southeast Asia are likely to increase in the future and I want to be protected against that.
I have previously invested in real-estate and I am not interested in doing so again. I am looking for a far more passive source of income with little to no maintenance/effort needed.
Thank you very much
Submitted February 01, 2017 at 09:02AM by retireethrowaway http://ift.tt/2krV0WJ
