[Existenceblinks]

Yep, 2024 market is considerably too good though. When he about to quit, I'd expect 8% yield (pessimistic) per year, so $6.4k/yr or $533/mo, that's "good" living quality in non major cities in Thailand. But to be fair, it's only good for locals, not for foreigners. And that $80k also needs to be invested 1 year before quitting.

It's doable for extending up to 3x of his runway.

[lottin]

If you get 8% returns per year on average, the expected annualized return over a multi-year period is going to be LESS than 8%.

This is because you won't get exactly 8% each year. For example, suppose the returns over a 3-year period are: 20%, -10%, 14%. In this case, the return over the whole period is 23.21% (= (1 + 0.20) * (1 - 0.10) * (1 + 0.14) - 1). On the other hand, a 8% return each year would have resulted in a 25.97% return over the whole period (= (1 + 0.08)^3 - 1).

[ericpauley]

When people say x% average annual return this is almost always referring to geometric mean already, so the above math doesn’t apply.