How to Semi-Retire and Travel The World On $200,000

Today I was reviewing historical returns on my Fundrise investments and realized they have done pretty well since I first started in 2016. For those that don’t know, Fundrise is a leading real estate crowdfunding platform for non-accredited and accredited investors. Founded in 2012, Fundrise pioneered the eREIT asset, a private diversified real estate investment trust that lets virtually anyone invest in real estate with as little as $500.

Reviewing my account performance, I saw overall returns were around 10% a year and the annual cashflow was a bit over 6%. A 6% cash flow return on their eREITS is what a competent but non-genius landlord property investor might expect to get with actual rental property.

Reading this made me realize that investing in real estate this way is a much easier way to diversify into property investment than actually dealing with being a landlord. But it got me thinking that someone could semi-retire and travel the world on much less than you might think if you’re willing to do a little bit of freelancing with your free time.

How To Semi Retire on $200,000

This is just hypothetical and for entertainment purposes but I think it’s realistic and could work. Here’s how it might be done.

AssetInvestmentAnnual IncomeMonthly Income
Crowdsourced REIT (Like Fundrise)$150,000$9000$750
Three-Fund Portfolio$50,000$2000$166
Total$200,000$11,000$911
Based on assumptions of similar returns for crowdsourced eREITS and the 4% withdrawal rate from a stock portfolio.

So the above table shows how you might invest $200,000 to generate a monthly income of a bit over $900. Now if you’re interested in world travel, there are many places in the world where you can rent a nice apartment for $300 to $500. Research areas like Chiang Mai Thailand, Medellin Colombia, Pnohm Phen Cambodia, Philippines, and more.

On my recent journey to Mexico, I was able to get this meal for only $1.28. It’s true that if you stick to just street food you may need Imodium after a few days though.

Living in many parts of the world, a monthly budget might look something like this:

Expense CategoryAmount
Rent$450
Food$300
Cell$30
International Health Insurance$30
Entertainment$200
Transportation (use subways, trains, Uber)$100
Misc$100
Total$1,200
Could it be done? If you have some discipline and maybe say Goodbye to Starbucks. I’ll take a Cama coffee over Starbucks anyways.

What About The Gap?

So if you’re a bit observant and paying attention, you’ll notice that the monthly investment income is about $300 short of covering all your expenses. Well you may have also noticed that I said semi-retire. If you put in some effort, it shouldn’t be hard to generate $300 a month freelancing on sites like Fiverr, or Upwork, or in many parts of the world you could earn $300 a month being an English tutor for less than 5 hours a week.

This post contains affiliate links, if clicked may provide new accounts a period 90 days with no advisory fees and provide the site creator with 270 days of no advisory fees. And now the obligatory, I’m not a financial advisor so check with your financial advisor before making any investments in anything.

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