I have my four-year-old help me find products in the grocery store, and if he points to something based on how it looks I'll say "let's make sure, sound it out!" If we are out, I'll pretend I have trouble finding a sign or store and tell him to watch out for it for me. "We're looking for the library what letter does that start with? Ok, look for signs with a word starting with L!" I'm hoping to make him aware of the words all around us and get comfortable with the idea that he is perfectly capable of figuring it out, even if he takes a long time. We read before bed every night as well.
I think as far as making your kid read for x amount of time... probably the most important thing at that age is making sure they love reading and find it fun. I would be concerned that a boring book or reading when they have a lot of energy to burn might make it feel like a chore. So sitting down for 20 minutes close to bed time with a good story after a busy day while you read nearby and are available for help sounds lovely. Sitting down to read a reference book for 20 minutes when you just got home from school and you want to play and your parent is hovering over your shoulder and judging you, no thanks!! So I think the "how" is more important than the "how much".