facebookIf you have $500k of investible assets and $2k expenses per month, what would you invest in to be coast-fire? - Seedly

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Anonymous

19 Jul 2021

βˆ™

Retirement

If you have $500k of investible assets and $2k expenses per month, what would you invest in to be coast-fire?

Coast-fire

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Chris

19 Jul 2021

Owner and Writer at Tortoisemoney.com

Depends on whether you have any intention to full FIRE.

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For 2k per month expenses, assuming that's comfortable for you, you'd probably need around 800k to FIRE, using a 3% withdrawal rate (to create a buffer since you can't really cut your expenses much at 2k a month).

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If you intend to coast FIRE for a long time, say next 20 years or maybe even indefinitely, then I'd just leave your portfolio in any of the commonly recommend global index funds/US index funds and let it run while your expenses are fed by your job.

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If you intend to full FIRE sometime soon, then perhaps now is a good time to start moving your assets into your preferred FIRE withdrawal mode. For many, this is dividend stocks. so you can start moving your portfolio into your chosen dividend stocks over the next few years, and continue to build your portfolio from your income and returns.

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