A Milestone Reflection: Pursuing FIRE at 35

As I sit down to write this blog post, I’m on the brink of turning 35 tomorrow. This moment marks a significant milestone in my journey toward achieving Financial Independence, Retire Early (FIRE) by the age of 40. With a current net worth of $2 million, I’ve reached 50% of my FIRE goal—but it hasn’t been an easy path.

I set this goal just before turning 31 during the COVID-19 lockdown. That period of reflection gave me the clarity to focus on building a solid financial foundation. Now, with five years left, I’m taking stock of my progress and planning my next steps to reach the finish line.

Sometimes, I can’t help but feel envious of those who are fortunate enough to earn significantly higher incomes. Their path to financial independence seems much smoother. For me, it’s different—I’ve had to work harder and be more strategic. My approach relies on 10x investing and disciplined savings. It’s about making the most of what’s available to me and staying focused on my goals.

By investing in high-growth opportunities and committing to a strict savings plan, I’m steadily progressing toward financial independence. It’s not always easy, but with resilience and determination, I’m hopeful that I can achieve FIRE by 40.

1. My Stock Portfolio: $724,000

In one of my earlier blog posts, I mentioned my commitment to simplifying my investment portfolio, inspired by Warren Buffett’s concept of a “20-punch card” approach. The idea is to limit my investments to a few high-conviction picks instead of diversifying into too many stocks. Over the past year, I’ve reduced the number of stock accounts I hold and streamlined my focus to just a few key positions.

At this point, Tesla has become the dominant force in my portfolio, accounting for around 50% of my total holdings. The recent meteoric rise in Tesla’s stock has been both exhilarating and challenging, as it reached new highs, partly driven by short covering, especially as it approached the $300 mark. This is followed by my positions in Palantir and Shopify.

Tesla: A Core Holding with Anticipated Catalysts

Tesla constitutes just over 50% of my stock portfolio, reflecting my strong conviction in its long-term potential. While the recent surge in its stock price has been exhilarating, I anticipate a short-term correction, which could present opportunities to increase my holdings at more favorable prices.

Looking ahead, several key developments are poised to drive Tesla’s growth:

• Full Self-Driving (FSD) Version 13: Tesla is expected to release FSD V13 to internal testers by the end of this week, with a public rollout targeted around Thanksgiving.This update aims to enhance autonomous driving capabilities, moving closer to unsupervised Full Self Driving.

• Affordable Vehicle Launch: Tesla is anticipated to introduce a low-cost vehicle, broadening its market reach and making electric vehicles more accessible.

• Shanghai Megapack Production: The Shanghai Megafactory is on track to begin shipping Megapacks in Q1 2025, with an initial capacity to produce 10,000 units annually, significantly boosting Tesla’s energy storage capabilities.

• Tesla Semi and Cybertruck: The completion of the Tesla Semi and the continued strong sales of the Cybertruck are anticipated to further enhance Tesla’s product lineup and market presence.

These are just a few of the reasons I believe Tesla’s future remains incredibly promising. However, to keep this post focused on my overall financial journey, I plan to write a separate, in-depth post diving into why I’m so invested in Tesla and its long-term vision.

Palantir: The Rising Second Pillar

The second largest holding in my portfolio is Palantir. I’m bullish on the company, particularly its AI Platform (AIP), which I see as the crown jewel of its offerings. However, I’ll admit that Palantir is not the easiest company to fully grasp—there’s a lot happening beneath the surface that requires a deeper understanding. While I believe in its potential, this lack of comprehensive insight has made me hesitant to allocate as much capital to Palantir as I have to Tesla.

That said, Palantir’s performance has been nothing short of impressive. My investment in the stock has already grown fivefold—a result I honestly wish I had seen with Tesla instead. Moving forward, I’m keen to dive deeper into Palantir’s AIP, especially given its potential to transform various industries.

Shopify: Empowering the Backbone of Commerce

My third conviction stock is Shopify, a company that likely needs no introduction. While historically focused on the B2B space, Shopify is increasingly moving into the B2C segment, especially with its innovations in payment solutions. What I admire most about Shopify is its relentless drive to empower small businesses. Toby Lütke, Shopify’s founder, along with his team, has remained laser-focused on innovation, consistently pushing new products and services that help small businesses thrive both online and offline.

Shopify’s ability to adapt and innovate in a rapidly changing market is what makes it stand out for me. It’s not just about building an e-commerce platform anymore—it’s about creating an ecosystem where entrepreneurs can succeed, whether they’re setting up shop online or expanding into brick-and-mortar spaces.

2. Crypto: $60,700 in Bitcoin and Ethereum

In terms of cryptocurrencies, I’ve kept my focus on the two main players: Bitcoin and Ethereum. I started exploring crypto back in 2020, purchasing these in tranches of about $1,000 whenever I have excess funds to allocate. I view crypto as a hedge against inflation and a store of value.

Bitcoin, in particular, appeals to me due to its unique property of true ownership. When you control your private keys (seed phrase), no central authority can seize your assets. This concept of decentralized ownership is what makes Bitcoin so powerful, in my opinion. While I remain more bullish on Bitcoin than Ethereum, I’m still interested in exploring new crypto projects, particularly those focused on AI. However, due to time constraints, I haven’t been able to dive deeply into these projects yet.

Despite my cautious approach, my investments in Bitcoin and Ethereum have paid off handsomely, delivering over 50% returns in the past two years.

3. Real Estate: Property Value – $1.29 Million (Net Equity – $470,000)

Two years ago, I purchased a property valued at $1.29 million. This property is expected to be completed next year and is projected to generate rental income of around $3,500 per month.

However, I still have an outstanding mortgage of $820,000, which affects the net value. If we consider the mortgage, my current net equity in the property stands at around $470,000. My strategy moving forward is to aggressively pay down this loan using my CPF contributions and passive income to increase my equity over time.

For now, I’m undecided on whether to keep this property as a rental or sell it to purchase a larger unit. Much of this decision will depend on the state of the property market. However, I’m leaning towards holding it for rental income to avoid tapping into my stock portfolio for a new purchase.

4. Private Investment in an Unlisted Company – $700,000

About a year ago, I took the opportunity to acquire shares of an unlisted company, which has since become a reliable source of passive income. This investment yields approximately $3,000 in dividends every month, translating to around $36,000 annually. Given that this is a form of ownership in the company, I receive dividends on a yearly basis rather than monthly disbursements.

The current valuation of this private investment is about $700,000, making it one of the more stable assets in my portfolio. It provides a consistent income stream, especially valuable during uncertain market conditions. However, due to the nature of my work, I can’t actively participate in the company’s operations as it presents a potential conflict of interest. As a result, my role is purely as a passive shareholder—essentially a “sleeping partner” who collects dividends without direct involvement.

5. SRS Contributions – $55,000

In addition to my stock portfolio, I’ve been diligently contributing to my Supplementary Retirement Scheme (SRS) over the past three years. For those unfamiliar, the SRS is a tax-deferred scheme in Singapore that allows you to contribute up to $15,300 annually. By doing so, you receive a tax deduction on that amount. The funds remain tax-deferred until the age of 65, at which point withdrawals are taxed at only 50% of the regular tax rate.

I’ve been maximizing my SRS contributions each year to take advantage of these tax benefits. Currently, my SRS portfolio is focused on the S27, which is the S&P 500 index fund listed on the Singapore Stock Exchange. So far, this strategy has been performing well, with the current portfolio value standing at approximately $55,000. This diversified exposure to the U.S. stock market has provided steady growth, aligning with my long-term FIRE goals.

Total Net Worth Calculation for 2024

After detailing my various assets, here’s a summary of how it all adds up. To keep things simple, I’ve excluded CPF, unit trusts, insurance, and emergency cash from this calculation. The focus here is solely on my core investment assets:

• Stocks (Tesla, Palantir, Shopify, etc.): $724,000
• Real Estate (Net Equity): $470,000
• Private Investment in Unlisted Company: $700,000
• SRS Contributions: $55,000
• Cryptocurrencies (Bitcoin and Ethereum): $60,700

Total Net Worth for 2024: $2,009,700

Reflecting on My Financial Journey

Based on these figures, my current net worth stands at approximately $2 million. I’m thankful that I’ve managed to achieve more than half of my goal, with five years left to reach my target. While market volatility is always a concern, I’m prepared for whatever the next five years may throw at me. As the saying goes, “What doesn’t kill you makes you stronger.” I’ve certainly experienced my fair share of emotional and financial ups and downs.

Despite these challenges, I’m reminded of the words in Philippians 4:6: “Do not be anxious about anything.” This verse has been a constant source of comfort during tough times, encouraging me to stay grounded and focused on my long-term objectives, no matter the short-term market swings or personal struggles I encounter.

Reflecting How Far I Have Come

As I sit here reflecting, I’m filled with gratitude for how far I’ve come on this journey. It feels like just yesterday when I was a student, about to graduate at 25, writing my first few blog post to celebrate reaching a net worth of $100,000. Here it is: https://firebyforty.co/2015/04/10/my-sg-portfolio/ At that time, it felt like a huge milestone, one that I was incredibly thankful. But if you had told me then that, nine years later, I would be sitting here with a net worth of $2mil, I might not have believed it.

The journey hasn’t been easy. Those early years were challenging, to say the least. Saving that first $100,000 was a significant hurdle—it required patience, discipline, and the willingness to delay gratification. I remember starting out in my career, trying to save every dollar while navigating the demands of a new job. There was one rainy day that I’ll never forget. I was rushing to a client meeting, feeling motivated and ready, when a sports car sped through a huge puddle, splashing water all over my face. I had to go into that meeting soaked, trying to keep my composure. Moments like that reminded me that the road to financial independence is rarely smooth, but it’s these experiences that build resilience.

This past year has been one of significant growth. As my stock portfolio appreciated, especially in the final weeks with Tesla’s run and gains in my crypto holdings, I felt the momentum picking up. But with that growth came the realization that I haven’t been as disciplined with my savings as I used to be. I indulged a bit—upgrading gadgets, splurging on a high-end jacket, and even treating myself to business class flights. These purchases brought temporary joy but also made me reflect on what truly adds value to my life.

Looking back now, I can see how every step—no matter how small—has contributed to where I am today. It hasn’t been easy, but it’s been worth it. For those who are still working towards financial independence, my advice is simple: Stay committed and keep pushing forward. The first milestones may feel like they take forever, but once you gain momentum, it gets easier. Every effort you put in now brings you closer to your goal.

I’m thankful for the journey—both the highs and the lows. They’ve shaped me into who I am today, and I’m excited to see what the next five years will bring.

The Department of Kelvin’s Financial Efficiency

Inspired by Elon Musk’s “Department of Government Efficiency” (better known as DOGE), I’ve decided to create my own Department of Kelvin’s Financial Efficiency for the upcoming year. This means being more intentional about where my money goes, simplifying my expenses, and focusing only on hobbies that truly bring me joy. Instead of being a jack-of-all-trades, I plan to streamline my activities to focus on what matters most—like skiing, which I genuinely enjoy.

The goal is to optimize my budget, reduce unnecessary spending, and free up time to dive deeper into investments. This includes researching stocks and exploring promising crypto projects. My interest lies in stocks with the potential to achieve a 10x return in 10 years, so if anyone has ideas or would like to connect, I’m always open to new insights.

By practicing financial discipline now, I can free up more resources to invest in areas that truly move the needle toward my FIRE goal. This approach will help me align my investments with my long-term vision.

The Plan for the Next Five Years: Saving and Investing

Moving forward, my plan is to save $12,000 per month from my salary, totaling $144,000 per year. Over the next five years, this will amount to $720,000 in contributions. Assuming a 10% annual return, I could potentially grow this to around $1 million.

In addition to disciplined savings, I’m counting on my existing assets to appreciate further. My goal is to leverage my current portfolio and real estate investments to generate the remaining growth needed to achieve my FIRE target. By combining disciplined savings with investment returns, I believe I can generate an additional $1 million through market appreciation, bringing my total to the $4 million I aim to achieve by the age of 40.

This journey won’t be without its challenges, but by staying focused and making smarter financial decisions, I’m confident that I can reach my goal. Here’s to the next chapter of disciplined investing and financial efficiency!

A Commitment to the Next Chapter: Pursuing FIRE by 40

As I move into this next phase of my life, I am more committed than ever to reaching my FIRE goal. I have five years left, and while the road may not always be smooth, I am ready to face whatever challenges come my way. My focus will be on staying disciplined, simplifying my life, and investing in what truly matters—both financially and personally.

The journey to FIRE isn’t just about accumulating wealth; it’s also about growing as a person, learning from past mistakes, and building a life that aligns with my values. It’s about finding meaning in the choices I make, whether it’s saving, investing, or deciding how I spend my time.

Lately, a song that has been on my mind is Eason Chan’s 陀飛輪 (YouTube link here). The lyrics of this song resonate deeply with my pursuit of financial independence. The song reflects on the idea that chasing material wealth—like the luxury watch —often leads people to lose sight of what truly matters in life. It’s a reminder that, while achieving FIRE is important to me, it’s not just about the money. It’s about using financial freedom as a tool to live a meaningful life.

The lyrics serve as a powerful metaphor, urging listeners to reflect on their motivations. The pursuit of wealth can sometimes feel like chasing after an expensive watch: impressive on the surface but ultimately not what brings lasting fulfillment. For me, reaching FIRE isn’t about the flashy milestones but rather about gaining the freedom to focus on what truly enriches my life—time with loved ones, personal growth, and living according to my values.

Here’s to embracing the journey, staying grounded, and not losing sight of what truly matters as I continue towards financial independence by 40!

How About You?

I’ve shared my journey towards financial independence—celebrating the highs, learning from the lows, and staying committed to my goals. But I’d love to hear from you. How’s your journey going? What are your own milestones, challenges, and lessons learned? Let’s continue the conversation and inspire one another to keep pushing forward toward our dreams.