3 Early retirement case studies sharing : how to achieve FIRE financial independence retire early with passive investing
Early retirement case study 1: young medical practitioner
Age 31, single
Financial goal: accumulate wealth to prepare for early retirement, looking to have stable passive income by age 45
Budget: lump sum of $50,000, each month can contribute $2,000
The background of this young medical practitioner is that he has attended the passive investing course [xxx] therefore he has the essential knowledge of ETFs. Also, he has experience investing in ETF.
However, because of busy work schedule, he is not having any consistent or systematic plan of investment so far. He has passion for music and would like to invest for stable passive income to support his living and early retirement so he can dedicate time on his passion project after age 45.
The reason why he chose the passive investing course is because this is applicable. He had read books and attended books on stock investing, trading etc. but found that it is very hard to actually apply to build a portfolio in reality. He is not satisfied about all the studying and desperately looks for something that can be put into practice. He really wants something that can be applied and helps him to build a stable, sustainable portfolio that supports his early retirement, all the while not taking too much time after work (because he usually would be tired after work and if the investment plan takes too much brain power or time, he would find it hard to sustain). The course promises not more than 5–10 minutes per month to build a sustainable portfolio which fit what he wants.
He successfully built his own investment portfolio after the course and has achieved 5% return while the market is down -13%. He feels confident about the sustainability of this portfolio to fulfil his financial goal.
Early retirement case study 2: 44-year-old engineer
Age 44, married
Financial goal: want to accumulate $700,000 for retirement
Budget: lump sum of $10,000, each month can contribute $5,000
The background of this engineer is that he is having his 401k, but he is putting his money in the bank and getting less than $1 interest each month. He is not sure what to invest in because he thinks that the risk is too big investing in individual stocks. He had lost money investing in individual stocks before so has lost confidence in stock picking. He still believes in the importance of investing but does not know where to put his money for sustainable growth with minimal risk possible. As a married engineer, he is busy at work and after work he wants to spend as much time with his family as possible, so he is not willing to dedicate much time on investment analysis. He is attracted to the passive investing approach but so far he does not have a systematic plan how to put it into practice.
After he attended the passive investing course, he has a very clear idea what he needs to do and he successfully set up his investment portfolio starting with $5,000. And thereafter grows the portfolio to six figure within 1 year. He is on track to achieve his financial goal of accumulating $700,000 for early retirement and he feels that he has a solid investment plan that allows him to sleep well even when the market fluctuates.
Early retirement case study 3: 56-year-old small business owner
Age 56, married
Financial goal: want to retire by age 58 (i.e. in 2 years)
Budget: lump sum of $500,000 (saved in banks), can contribute around $3,000 per month for 2 years
The background of this small business owner is that he has worked hard in the small business in the past 15 years and have accumulated a substantial lump sum. He has made many investments previously but none that he feels safe in the long term.
He was found with a disease 1 year ago which was luckily curable. He wants to accelerate retirement within 2 years to travel the world with his wife after curing the disease and he is looking for a stable, sustainable way to invest his capital so that it works for him after his retirement to support his living and fight against inflation. After he attended the passive investing course, he found that it fits his needs for a long term sustainable portfolio