How One Investor Took A Government Job At 23 – Then Built Up A $5 Million Portfolio And Retired At 52

Building retirement portfolios takes a combination of planning and discipline, but it doesn't hurt to have a little good luck along the way. With that said, the good luck part won't matter much without the planning and discipline part included. There is a misperception that only ultrahigh wage earners can retire young, but this former government employee built a $5 million portfolio and retired at 52. Keep reading to learn how they did it.

This story appeared in a Reddit thread under the name r/fatFire. They opened it by saying they were tying up loose ends at their government job in preparation for retirement despite being only 52. Although it may be tempting to assume they were already independently wealthy, that would be wrong. R/fatFire admitted to having some good luck along the way but said they "Started from zero with no trust fund or family-funded investment accounts."

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The writer secured a government job at the age of 23 but admittedly started ahead of the game by graduating college with no student debt. That certainly allowed them the financial flexibility to begin saving immediately. They began contributing to their government retirement plan from Day One of their employment. It's also worth noting that they made the maximum possible contributions allowable.

They also maximized their income potential by attending graduate school at night. This endeavor required them to take out student loans, but they paid back the loan through a government incentive program that encouraged employees to seek additional education. One recurring theme throughout this Redditor’s life is the avoidance of debt, especially high-interest debt like credit cards or even student loans.

Not everyone is fortunate enough to avoid student loans, but steering clear of high-interest debt and impulse purchases certainly leaves a lot of money that can go toward retirement. The Redditor's government service also involved working for 15 years in overseas locations that offered hazardous pay and included government-funded housing. They piled the money they would have spent on rent into investments.

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One of those investments was a mutual fund that performed well enough for the author to cash it out and buy a house in cash. That home, which was already in a very nice area, appreciated very rapidly in value during the COVID crisis. This was the author's second home purchase. The author and their spouse rented out their first home for 10 years while working overseas and sold it at a profit.

They were also blessed to get a $135k inheritance. That was quite a windfall, but not enough to retire on. Instead of buying a sports car, the author put all that money into the market. This, along with not having any children or getting a divorce, left the author in a rock-solid financial position. However, the key here again is that they maximized this advantage by being disciplined investors.

By the time the author was 52, they were ready to retire. They had a large investment portfolio, a $90k per year government pension and a subsidized health insurance policy. You may not be able to duplicate every step this Redditor took, but there is a lesson to be learned here. The sooner you plan an investment strategy, the sooner that plan begins paying off for you.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

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