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baristaFIRE

Edited 16 Dec 2023

General Investing

How to invest $2k monthly?

Hi all, I plan to save up enough for barista FIRE semi-retirement in the next 13 years and then work part-time for about 5 years before retiring fully. Estimated retirement horizon of 30 - 40 years. My estimated retirement spend is ~$1.7k/month (present value). Have recurrent passive rental income of $1k/month (present value).

Am able to invest $2k of my income monthly but have close to no knowledge of financial/stock markets, etc. Have term life insurance for death/TPD/CI, integrated shield plan for medical, and a year's worth of emergency funds. No dependents.

1) What kind of investments are suitable? i.e. requires little knowledge, minimal monitoring

I did some preliminary research but would appreciate confirmation/additional reassurance that I'm on the right track.

Bonds: e.g. US T-bill to keep capital safe

ETFs: e.g. S&P500, STI ETF to grow nest egg

REITS: e.g. CICT for dividend payouts

2) What would be a recommended allocation ratio for the various asset classes in my portfolio? How often would I need to rebalance?

3) How does the 4% withdrawal rate work?

How would you cash out 4% of your portfolio annually? Unless you bought all dividend paying equities? I know it's a super newbie question, pls bear with me!

Thanks in advance, lovely people!

Discussion (25)

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ETFs could be a good option if you want to invest around $2k per month, you can find out more about ETFs here.

No perfect strategy, just dont 100% all-in

I personally don't invest cos it's too risky. Work full time + Part time + collect rental income...

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