[javitury]

> Spending 3k€ per month for the next 30 years would be about 1M€

That is only withdrawing the principal without taking into account the real interest/yield rate you can make off the investment. That money would probably last longer or yield more for the same time period.

In fact, as you point out it can last indefinitely with an after inflation and tax ROI(real yield) of 4% which converts to ~3k/mo. You would have to plowback excess returns on good years and withdraw part of the principal on bad years. Plus readjusting your expectations from time to time.

One of the best investments you can make is to get a financial education. You don't need to get a pedigree to show on your job interview, you should go only after the knowledge which will be cheaper.

And lastly a diversified mix of stocks, long term bonds and short term notes will earn you that passive income. Now that you are young take a little more risk and shift your allocation gradually towards short term debt as you age.

[barrkel]

The real interest rate is usually negative in today's environment; I'd love to know where you're getting a risk-free 4% after inflation and tax.

[charlesdm]

Why does it have to be risk free? Did you make your money not taking risks? Taking calculated (not stupid) risks helps you get decent returns above 5% quite easily.

Put half of it in a low fee index fund, and half in stocks you believe in. Those stocks are higher risk, but can have a much higher (or lower) return than the index, i.e. risk 20% of your capital for a potential 50% gain. You can add bonds to the mix if you want.

[barrkel]

Half in picked stocks is a very high risk strategy. I wouldn't recommend it.

[charlesdm]

And I would. Look, it all comes down to what you're comfortable with and how you've made your money. Some people are terrified of losing even a penny. Others don't care if a stock goes down 20%, if long term the business is solid / healthy and the price makes sense.

If you're looking for stock tips on the internet, then yes, half in picked stocks is quite risky. If you're willing to put in the work to do the research by plowing through SEC filings, reading annual reports, trying out the product the business is selling, in sectors you know and understand (i.e. tech for us) and you have common sense, then it's quite reasonable. You won't always get it right, but you can at least do better than others who haven't done their homework. That also means saying no to 90% of the stocks you could invest in.

[adventured]

Muni bonds are the best way to go for that. You can still nail 4% plus after inflation and taxes there. You're not going to get risk-free anywhere, there's no such thing.

[nstj]

Can you provide some example names? I'm seeing returns of only 1.65% on the Barclays Muni Index[0]

[0]: https://index.barcap.com/Benchmark_Indices/Aggregate/Bond_In...

[whatok]

You're looking at the yield; not the returns. You also cannot directly invest in the index but there are ETFs that track it.

[nstj]

Sure - so you're factoring capital appreciation in to the total return for your 4% after tax number? Which would imply that you're not holding these to maturity though right?

[driverdan]

Nothing is risk free.