> what precise steps should I do to live off of my cash stack while doing absolutely 0 work other than sitting on my couch?
I would put X% in Vanguard 500 Index Fund[1], and in Y% Vanguard Total International Bond Index Fund[2].
X% should represent the amount of money you can afford not to touch during the entire economic downturn.
Y% should represent the amount of money you want to be able to cash out at any point during the economic downturn.
Another alternative to S&P-500 for putting X% in is Nasdaq-100[3]. It has performed much better over the years, but it's significantly more tech-focused:
> The table below and the charts above display historical performance figures for both the Nasdaq-100 TR and the S&P 500 TR between Dec. 31, 2007 and June 30, 2020. Despite recent overall market volatility, the Nasdaq-100 TR Index has maintained cumulative total returns of approximately 2.5 times that of the S&P 500 TR Index.
I would put X% in Vanguard 500 Index Fund[1], and in Y% Vanguard Total International Bond Index Fund[2].
X% should represent the amount of money you can afford not to touch during the entire economic downturn.
Y% should represent the amount of money you want to be able to cash out at any point during the economic downturn.
Another alternative to S&P-500 for putting X% in is Nasdaq-100[3]. It has performed much better over the years, but it's significantly more tech-focused:
> The table below and the charts above display historical performance figures for both the Nasdaq-100 TR and the S&P 500 TR between Dec. 31, 2007 and June 30, 2020. Despite recent overall market volatility, the Nasdaq-100 TR Index has maintained cumulative total returns of approximately 2.5 times that of the S&P 500 TR Index.
[1] https://investor.vanguard.com/mutual-funds/profile/overview/...
[2] https://investor.vanguard.com/mutual-funds/profile/overview/...
[3] https://www.nasdaq.com/articles/when-performance-matters%3A-...