F.I.R.E or SEMI in 21 MOS **iNVESTMENT OPTIONS/SUGGESTIONS FOR STASH**

[Andresg]

My husband and I are new to this forum but are very excited as to how helpful everyone's posts are and thrilled with the like-mindedness of everyone! With that said we decided a few months ago our goal is to FIRE, leave Texas and move to Spain. We have been doing a lot of economical background research to quantify this move. We have also been to Spain several times so this not a blind move by any means. We may work here and there part time.

*** I wanted to give our financial standing to The Forum and seek advice on what everyone thinks would be our best investment moves. I.E.What type of funds etc would be ideal to have that would good dividends over time.

Iwill admit, we have been scared and hesitant to invest in fear of losing the money BUT are now more comfortable with and know it must happen to FIRE.

Here it goes:
I am 41, husband 38
No kids, no plan to have kids
Our goal is to move to southern Spain in January 2019 (21 months) FIRED.
We sold our house. No mortgage. Now living in an apt.
Both cars are leases and will be turned in upon moving.
No debt.
Currently have about $450k in savings and with our budgeting methods, our goal is to have a little over $700k saved by January 2019.
We both have small (maybe 20k) in 401k and IRA'S)
We plan to live in an area in Spain that the annual cost of living would be between $20-$25k per couple.

***With all that said, what are some suggestions on what to do today with our cash, investment wise, and in the future moving forth?

I look forward to everyone's input and feel free to ask any additional questions!
Thanks!

[marty998]

There's no need to sell your investments when you move to Spain.

Buy US ETFs and hold them long term. You can have your quarterly distributions paid to Spain when you move.

Consult a tax accountant for the relevant tax advice.

[Blueskies123]

That is a very low level of spending.  Are you sure that you are planning for no vacations, no medical expenses, major repairs, transportation, and trips homes for emergencies or just to see relatives?
Why not work until you are 50 and have some money for vacations?

[2Birds1Stone]

That is a very low level of spending.  Are you sure that you are planning for no vacations, no medical expenses, major repairs, transportation, and trips homes for emergencies or just to see relatives?
Why not work until you are 50 and have some money for vacations?

Wrong forum?

Work an extra decade for vacations? Srs?

[Eric]

Start reading through the Investor Alley section of this forum:

https://forum.mrmoneymustache.com/investor-alley/

Read through the "Getting Started" section of the Bogleheads wiki:

https://www.bogleheads.org/wiki/Main_Page

Read the Stock Series from Jim Collins:

http://jlcollinsnh.com/stock-series/

Consider setting up a lazy portfolio and writing an Investment Policy Statement:

https://www.bogleheads.org/wiki/Lazy_portfolios
https://www.bogleheads.org/wiki/Investment_policy_statement

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Have you looked into the visa needed to retire to Spain?  Does it come with a requirement to pay Spanish taxes as well?

[Andresg]

There's no need to sell your investments when you move to Spain.

Buy US ETFs and hold them long term. You can have your quarterly distributions paid to Spain when you move.

Consult a tax accountant for the relevant tax advice.

Thanks for your feedback!
Can I ask why you recommend ETF'S instead of Admiral Shares with Vanguard?
Any recommendations or fund favorites?
And thank you for the tax tip!

[Andresg]

Start reading through the Investor Alley section of this forum:

https://forum.mrmoneymustache.com/investor-alley/

Read through the "Getting Started" section of the Bogleheads wiki:

https://www.bogleheads.org/wiki/Main_Page

Read the Stock Series from Jim Collins:

http://jlcollinsnh.com/stock-series/

Consider setting up a lazy portfolio and writing an Investment Policy Statement:

https://www.bogleheads.org/wiki/Lazy_portfolios
https://www.bogleheads.org/wiki/Investment_policy_statement

--------------------------------

Have you looked into the visa needed to retire to Spain?  Does it come with a requirement to pay Spanish taxes as well?

Thank you for this info! Will read through it!
And yes we would be moving on a Non-Lucrative / Retirement Visa.
We would not be required to pay Spanish taxes.
We have been to Spain several times and are making a trip again this Sept to scope and determine our exact area/city of choice.
Thanks again and please let me know if you have any other feedback!

[Andresg]

That is a very low level of spending.  Are you sure that you are planning for no vacations, no medical expenses, major repairs, transportation, and trips homes for emergencies or just to see relatives?
Why not work until you are 50 and have some money for vacations?

A $700k stash will be able to generate the approx $20kish amount they need to cover expenses with enough left over for vacations, etc... However I would recommend the OP check out the low cost areas of Spain they want to live before pulling the job plug. Also  if deciding to FIRE on a low budget make sure you have enough cash to fund moving home and living in a HCOL area again if needed for awhile in case you change your mind about Spain years later.

SPARTANA, Thank you!
We have visited Europe and Spain several times and love the entire European lifestyle. We have a plan trip this September to go back to Spain to scope and beside on the specifics City in the southern region that we plan to live. Any investment recommendations? Thanks so much!

[Andresg]

That is a very low level of spending.  Are you sure that you are planning for no vacations, no medical expenses, major repairs, transportation, and trips homes for emergencies or just to see relatives?
Why not work until you are 50 and have some money for vacations?

The cost of living is indeed low, but viable, thus the reason we are wanting to move to Spain. Believe it or not, $25,000 annual expenses will allow us to live very comfortably in a beautiful country. We have been several times before and love the European lifestyle and Spain as a whole. We anticipate having monies for the necessary things you mentioned. Any investment suggestions? Thanks again.

[Gimesalot]

Some thoughts about Spain in particular:

Are you sure that you can qualify for the non lucrative visa?  Based on internet reports, I have heard from $35k to $50k per year as a couple to have a chance at this type of visa.  See some reports here: 
http://www.twobadtourists.com/2014/07/18/how-to-apply-for-a-long-term-residence-visa-in-spain/
http://almostfearless.com/want-to-move-to-europe-whats-an-american-to-do/

Also, Spain taxes total world-wide assets for all residents.  There are some exceptions depending on the province where you reside but you may need to take this into account.