If you have the savings then why not? There is probably not a better time in history than to check out from being a corporate drone, assuming you have the savings. The stock index returned 30% last year...a $1M nest egg returned $300K in a year. I don't know what his savings looks like but I assume most of it is invested and wasn't included in these numbers.
The returns in 2019 were exceptionally good. There’s little reason to assume 2020 will be as good.
With everything going on this year: Brexit, US elections, impeachment, corona virus, etc... it’s entirely possible this years returns could be negative.
Sure, I mean it doesn't sound like his plan was to live off his investment income, but it certainly has been possible.
My point is that when you get to the point where your savings is high enough your money works for you at a level that makes it possible to live off of alone.
If the S&P is looking flat then you could rollover some of it to a high dividend REIT that pays 10-15% too.
>If the S&P is looking flat then you could rollover some of it to a high dividend REIT that pays 10-15% too.
You know the business cycle is peaking when people think you can easily throw their money into some investment paying 15%...no problem!
Can you explain how a public investment - any public investment - can continuously generate those kinds of returns without taking on massive amounts of risk?
I know what a REIT is. Maybe you could explain how rental income is spinning off 15% cash a year? Do you think real estate is a magic industry that returns 15% annually, unabated? Why are these friendly real-estate developers sharing that money with you?
He talks about that a bit - most of his money was invested in a simple S&P 500 index fund, with some dabbling in crypocurrencies (which worked out in his case.)
