I've read BH guides and literature and been learning a lot recently, and would like to get your opinions to hopefully help me with my dilemma.
I've been lucky enough to accumulate wealth to be able to retire already - but I'm really undecided between how to put this wealth to use.
I've read the various windfall-management literature and I'm not hasty with any decisions. I have time, patience, and am willing to learn.
- Age: 35
- Live in: Europe
- Investable money: 15M EUR (had some success with tech companies, startup investments etc.)
- Yearly expenditure: 300,000 EUR (I know it's a lot... but, please don't judge )
- Goal 1 - Make investable money generate passive income to sustain my life at the same expenditure rate as now to be able to retire and do other things in life - until the day I die
- Goal 2 - Leave an inheritance to the next generation after I'm gone (and possibly help them out while I'm still alive)
- Split the money into two - 5M for a long term portfolio for Goal 2, and 10M for Goal 1 - this means I need 3% to achieve goal 1 (putting aside taxes, etc. - which are low in my case)
- Goal 1 option 1 - Invest 10M into dividend distributing ETFs (either following large index funds that distribute dividends, or "Aristocrat Dividend" high yield indices, or REITs, or a blend of them)
- Goal 1 option 2 - Invest 10M into accumulating ETFs and just sell the shares yearly as I need
- Goal 1 option 3 - Invest 5M into accumulating/distributing ETFs (whichever I choose above) and 5M into actual real estate, which I'd be collecting rent from
- Goal 2 - Invest 5M EUR into accumulating ETFs (three fund portfolio) - this is a very long term (I hope) investment which should be for at least 20-30 years
- What are your thoughts/suggestions/comments/warnings/anything on the above ideas to achieve the goals? (more ideas are welcomed of course)
- For "Goal 1 option 2" - one thing I'm concerned about is that during a market crash, from what I read - I can expect to still receive the same dividends I would in normal times (option 1), but if I must sell the ETF shares I'd be selling at a low price and thus losing a lot of money (since I'd need to be selling enough shares to meet my yearly expenditure, which in a time of market crash means - a lot more than I would otherwise) - any ideas/thoughts on this?
Thank you very much for the time to read and hopefully respond to this