Property investments enabled him to retire early at 51

Living below his means and being prudent helped him build a robust investment portfolio

- Rosalind Ang

Retired banker Andy Lim realised the importance of retirement planning when the 2009 financial crisis hit, and he saw colleagues and friends lose their pension and retirement funds from their bank equities.

It dawned on him how fragile job security was. "You may have a well-paying job now, but this can come and go quickly," said Mr Lim.

His realisation about such precariousness kicked off his investment journey, and he became a big believer in the financial independence, retire early (Fire) movement, which involves financial practices that combine intense budgeting, saving and investing to support retirement before the ages of 65 to 70.

Mr Lim focused on investing in property and living below his means, giving up on luxuries like branded cars so he could maintain a high saving rate - he drove a Toyota in his earlier working years, unlike some of his friends who had fancy cars.

Thanks to his financial sense and prudence, Mr Lim, who was an executive director at an American bank, is now retired at the age of 51. With over half of his investment portfolio devoted to property, he is able to derive passive income from the rents, helping him secure an early retirement.

Mr Lim, who graduated with a bachelor's degree in accountancy from Nanyang Technological University in 1997, now lives in a private condominium in Hillview with his wife and two sons, aged 20 and 10.

Q What is in your personal portfolio?

A I have 60 per cent in properties, 15 per cent in fixed income, 15 per cent in equities and 10 per cent in cash.

My banking job before I retired had compliance restrictions, so the only equities I held were my bank stocks. In the last year, since government bond yields have spiked, I've added government bonds and Treasury bills to my portfolio.

I'm sufficiently covered for hospitalisation and life term. I have also bought a universal life policy for legacy planning purposes.