Strategy and amount needed for $25k gross annual income

[Perig Vennetier]

Hi all,

I could move to another country in a few years selling everything I have in California including principal residence. I would need about $50k per year to be quite comfortable there. I can easily get a job for $25k there so I'm thinking another $25k from investment would be a good strategy.

How much would you calculate is needed to be invested and what strategy would be a "safe" and "reliable" year after year? What kind of diversification would be good? What would be a fair safe return on investment in current cycle? It has to be 90%hands off.

Additional question: the fact that California thinks I should still pay state taxes even though I would live overseas (need to confirm), what state would make sense to move to and invest before leaving for overseas?

Thanks!

[Andrew Hogan]

@Perig Vennetier, Yes you do need to pay taxes in the US if you are a US citizen or national living abroad. However, you get to deduct any taxes that you paid to the foreign country and of course, real estate losses... For tax purposes, there are people who specialize in setting up a business abroad for you.

Like others have said, returns are contingent upon your risk tolerance. I'd plan on 250k in your real estate investments yielding you 10% to be safe. Your objective now is to underwrite different sponsors that can get you that yield.

Good luck!