Quote: (04-09-2017 04:12 PM)elrubionordan Wrote:
thank you all,
so,if i invest 300k at 4% that would give me 1 grand per month?
Read as much as possible about the 4% rule.
The short answer is no, it will not guarantee 1 grand per month, but based on historical data, if invest your money intelligently and withdraw 1K per month adjusted for inflation, you are unlikely to run out of money in the next 30 years and even beyond that. The big assumption here is that future returns will be similar to past returns. Which is the main reason many people question the 4% rule and use a lower percentage for their retirement planning. Another assumption here is that you will invest the money intelligently.
Use the following web site for simulations using historical data for different asset allocation scenarios: portfoliovisualizer.com
Also, keep in mind:
-You have less than 300K to invest because you need an emergency fund.
-The returns are before tax, so any taxes you'll have to pay should be budgeted as expenses for the purpose of using the 4% rule. In the US, you could ignore income and capital gains taxes at this level, because the amount of money you are likely to make from investing 300K is way too low to be taxed. I don't know about your country and how your taxes, if any, would change if you were to move to another country in the future.
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mmm i guess i could live in cambodia,philipines or laos with that money,maybe even dominican republic right?
I think it's pretty safe to say you could survive in any of those countries. As for living there and enjoying your life, I am not so sure unless you find additional sources of income.