This Mumbai Man Is On The Road To FIRE With Equity SIPs | Mint Money

Summary

Arunava Gwinn, a 4-year-old aiming for early retirement, is nearly halfway to his goal of achieving a 15 CR rupee corpus through savvy investing and cost-effective living. Born and raised in Mumbai, his journey includes a switch from home ownership to renting for better amenities and space, aligning with his FIRE (Financial Independence, Retire Early) aspirations. Arunava's strategy involves mutual funds, direct stock investments, and a keen focus on minimizing unnecessary expenses, while also considering the impact of lifestyle inflation on his financial goals. He emphasizes the importance of balancing desires with financial planning for a happy and productive life.

Takeaways

• 😀 Arunava Gwinn, a 4-year-old, is aiming for financial independence and early retirement with a target of 15 CR rupees corpus, and is already nearly halfway there.
• 💼 Initially, Arunava spent most of his income with little savings, but later got serious about saving after being introduced to the concept of mutual funds and the FIRE movement.
• 🏠 Arunava switched from living in his own home to renting a larger space in a more amenable area for his growing family, and now enjoys the benefits of a gated community.
• 💡 The decision to rent rather than buy was based on a strategic analysis which concluded that renting made more financial sense at the time.
• 💰 Arunava's current financial status is around 15 crores, and he is on track to reach his goal in the next 5 years, despite uncertainties about inflation and currency value.
• 🚀 Arunava's vision of retirement is not about idleness but about gaining independence to pursue more productive and interesting endeavors, possibly involving entrepreneurship or teaching.
• 🔄 Arunava started investing in stocks based on tips from colleagues, but after the 2008 financial crisis, he shifted his focus to mutual funds, eventually owning around 60 funds before consolidating.
• 📉 Arunava uses Value Research as a resource to understand the mutual fund ecosystem and has been trimming down his portfolio to a more manageable number.
• 🏦 Arunava is a firm believer in investing directly rather than through a distributor, as he finds it more cost-effective and efficient once his portfolio reached a certain size.
• 👨‍👩‍👦 Arunava's financial planning is a joint activity with his wife, and they both need to align their plans for a successful FIRE journey.
• 🌐 Arunava's investment strategy includes a mix of mutual funds, direct stocks, and a small percentage in debt investments, with no significant investment in real estate or gold.

Q & A

What is Arunava Gwinn's goal for financial independence and early retirement?

Arunava Gwinn's goal is to achieve financial independence and retire early with a target corpus of 15 crores in rupees, and he is nearly halfway there.

How did Arunava's interest in the FIRE (Financial Independence, Retire Early) movement begin?

Arunava's interest in the FIRE movement began when someone in his office introduced him to the idea of savings and mutual funds. Later, he started following people on Twitter who were part of the movement, which further piqued his interest.

What was Arunava's initial experience with investing before getting serious about it?

Initially, Arunava spent most of his income with barely any savings. It was only years later that he got serious about saving money, influenced by someone in his office who introduced him to the idea of savings, mutual funds, and other investment options.

How did Arunava's investment journey evolve after the 2008 financial crisis?

After the 2008 financial crisis, Arunava started exploring mutual funds and has had a stable investment journey since then. He also began reading about the FIRE movement and started following it more seriously.

What significant change did Arunava make in his living situation as part of his FIRE journey?

Arunava switched from living in his own home to renting a place in a gated community with more amenities and space for his growing family. He put his own house on rent to cover the cost of his new living situation.

What is Arunava's current FIRE number, and how close is he to achieving his goal?

Arunava's current FIRE number is around 15 crores, and he estimates that he is slightly short of halfway there, but he is on track to achieve his goal in about 5 years.

What is Arunava's vision for his retirement or independence?

Arunava's vision for retirement or independence is not about completely stopping work but rather gaining the freedom to explore different avenues such as entrepreneurship or teaching, which he is passionate about.

How does Arunava manage his investments, and what is his approach to mutual funds?

Arunava manages his investments directly, having transitioned from using a distributor. He started with a few SIPs in mutual funds and eventually consolidated his investments down to around 20-25 mutual funds, focusing on tax efficiency and market conditions for buying and selling.

What is Arunava's strategy regarding real estate and gold investments?

Arunava does not consider real estate a good investment for his portfolio size, and he has not invested much in gold or fixed deposits. His primary focus is on mutual funds and direct stocks.

How does Arunava's family situation align with his FIRE goals?

Arunava's wife is also involved in the FIRE journey, and they work together on financial planning. Their joint efforts ensure that both are on the same page regarding their financial independence goals.

What are Arunava's thoughts on insurance, and what type of insurance does he have?

Arunava has term insurance and may increase his coverage this year. He also has health insurance through his company and a family floater policy for additional coverage. He believes insurance should only be for the period that one plans to be earning.