I seriously wouldn’t know how to go about this. Okay, I get the 4% rule thingy and the 25 times your expenses ratio in order to retire early. I’m not daft…but how do I go about paying myself twenty years from now?
I mean, if you’ve built a property portfolio and landlording ‘n stuff…I get that your income comes from rent. Duh. But we don’t intend to do that (The Netherlands just isn’t the best place in the world to do that, we HATE DIY and we just couldn’t be bothered handling tenants).
So, we intend to have a mortgage-free home and a kick-ass portfolio that will consist of stocks, bonds and maybe some REITs.
The thing I haven’t read about in any of the cool blogs is how to go about this early retirement business then. Just the 4% rule. But do we extract 4% annually and put it on a savings account which we’ll then extract money from each month, or do we extract 0.33% monthly…or what?
I know we’re not there yet, not even close. But it’s good to know what to do when you’ve finally arrived.
Is this a really silly question or what do you reckon?
Maybe I should ask jlcollinsnh or MMM?