Individual Stocks Vs. ETFs - Which Will Fulfill Jeff's Early Retirement Dreams? (Part 1 Of 2)

Summary

• There are no tricks when it comes to investing because what you do with your money now dictates what it will be worth in the future.
• This case study focuses on an individual who wants to retire in his early 50's and the question is will his current portfolio outperform an ETF portfolio?
• The trick to achieving an earlier than normal retirement is to balance debt, investments, and most importantly, overall expectations.
• When it comes to investing it can be challenging to avoid getting lost in the big picture so keep reminding yourself of the "True Goal".

Investment Thesis

I feel incredibly thankful for the number of people who have contacted me about reviewing their retirement portfolio and allowing me to do a case study so that they can better understand the roadmap to retirement. I've always felt that it is a privilege to speak into someone else's life (especially when they've only ever known you via the Internet).

This case study focuses on Jeff who is a physical therapist that owns his own practice. Jeff approached me about reviewing his portfolio because he feels like he has reached a crossroads as to whether his time and effort is producing strong enough returns in comparison to a portfolio composed of four ETFs (the ETF portfolio will be covered in part two). Jeff's situation is unique for several reasons:

1. Jeff enjoys spending time researching and choosing investments (many readers would likely consider this task onerous and draining). Although Jeff enjoys this type of research he also wants to make sure that it is producing reasonable results.
2. I consider Jeff to be a high-income earner as his tax return is typically $200,000 or more per year.
3. Jeff is currently 41 years old and has stated that he intends to retire at the age of 53 years old. While this date isn't set in stone, Jeff has made it clear that he does not see himself working full-time past the age of 55. (Although he may consider temp work if necessary.)
4. Due to the fact that Jeff is a business owner and younger than most people I write about he also has a larger debt burden than previous clients I have written about (all previous clients I have written about are in their 50's or 60's and have very little or no debt).

With the above criteria in mind, I

Analyst’s Disclosure:I am/we are long OHI, SKT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article reflects my own personal views and is not meant to be taken as investment advice. It is recommended that you do your own research. This article was written on my own and does not reflect the views or opinions of my employer.