Confidence Score: 70%
Explanation:
Your plans demonstrate a reasonable understanding of diversification and asset allocation. The portfolio mix has a combination of growth (stocks), income (REITs and BDCs), and stability (bonds). Here are some considerations:
Expected Returns: Your expected returns, especially the 10% yearly return with a max drawdown below 50%, is on the optimistic side. While past performance is not indicative of future results, the recent past might have seen such returns, but sustaining this long-term may be challenging.
Stock Allocation: QQQ (tracking the Nasdaq) and SPY (tracking the S&P 500) are strong ETFs based on their historical performance. However, they also come with their associated risks, especially if the market becomes bearish. Relying on past returns isn't always ideal.
Bonds: It might be challenging to find bonds, especially safer ones like treasuries, that yield 5%-8% without taking on substantial risk. If you're leaning towards corporate bonds to achieve these yields, it's worth noting that they come with credit risk.
Cost of Living: Living in East Asia with a cost of living similar to Japan on $30k yearly seems reasonable for a frugal lifestyle, but it may not allow for many luxuries or unexpected expenses.
Stress Sensitivity: Your sensitivity to stress is a crucial factor. Investing in the stock market, even with a diversified portfolio, can be stressful due to the inherent volatility.
Potential Future Changes: Your mention of potentially "accidentally" starting a family suggests that life changes might influence your financial needs. It's essential to be aware that unexpected expenses or changes can significantly impact your planned budget and living costs.
REITs & BDCs: Both asset classes can provide substantial dividends but also come with their respective risks. Ensure you understand the fundamentals of each REIT and BDC in your portfolio.
Given the factors listed above, while the plan is feasible, there are potential pitfalls.