Summary
Highlights
They discuss their home, bought in 1991 for 6 lakhs by Yogesh's parents, which serves as their base in India due to its emotional value. Post-retirement, their days are free of alarms and work meetings; they enjoy waking up late, having their tea ritual, and spontaneous travel planning. They've developed a new hobby of hiking and enjoy cooking at home while traveling.
Yogesh and Seema, a couple married for 22 years, introduce themselves as 'The Fired Couple' who achieved financial independence and retired early. They share that they've been traveling the world since retiring last year and are now back home. They discuss how they planned for financial independence for a long time, initially aiming for retirement at 55, then 45, eventually achieving it somewhere in between, even before knowing the term 'FIRE'.
Seema describes her upbringing in Delhi from a middle-class background, her education in local government schools and Delhi University, and her early career in IT starting with a 2,000 Rupee salary. Yogesh shares his farming background in Punjab, his engineering education, and his start in sales with a 5,000 Rupee salary. Both transitioned to IT during the IT boom and had opportunities to work abroad in Japan, the US, and the UK, eventually settling in Europe and later Singapore. They emphasize their commitment to saving at least 30% of their monthly salary, which increased dramatically after moving out of India.
The couple explains their journey to reaching their financial independence number, noting that the first 1 crore (approximately $1 million) took the longest, about 12 years, but subsequent financial milestones were easier. Their focus shifted to generating enough passive income to cover expenses. They currently cover 70-80% of their expenses through passive income from rental properties, dividends from stocks and funds, and interest from fixed deposits and bonds, taking advantage of high interest rates.
They detail their investment strategies, including focusing on assets that generate passive income like real estate, dividend-paying stocks, and debt funds. They implement a 'three-bucket strategy' for managing their funds: the first bucket for 24 months of expenses in easily accessible cash, the second for 2-6 years with medium-risk investments, and the third for long-term investments (6+ or 10+ years) in assets like real estate and crypto with higher volatility. Their portfolio is diversified with 30-35% in real estate, 35% in equity markets (mutual funds, ETFs, stocks), and 30-35% in cash, fixed deposits, bonds, and gold. Their investments are split 50% in India and 50% outside India.
The couple reveals a 'hidden secret' of the airline industry: 'Round the World tickets' offered by alliances like Star Alliance and Sky Team. These tickets are priced by miles flown, not destination or peak time, making them super discounted. They come with rules like needing to travel in one direction (east to west or vice-versa), completing the trip within 365 days, and stopping at a maximum of 15 cities. They highly recommend this for slow, multi-country travel. Their personal travel goal is to visit all possible countries while they are physically capable, categorizing their life into 'go-go years', 'slow-go years', and 'no-go years'.
They emphasize the importance of couples planning finances together. Seema manages all the financial spreadsheets and provides monthly reports on their portfolio's performance. They note a gender bias where financial advisors often direct questions to Yogesh, but they insist on joint discussions. Their advice to other couples is to discuss financial goals as a family, budget together, and prioritize open conversation about finances rather than adhering to gender stereotypes. They conclude by stating that early retirement is an option, but financial independence is a goal everyone should seek.