The Jensens’ Journey to Financial Independence: Embracing the FIRE Movement

In the world of personal finance, few movements have gained as much traction as the Financial Independence, Retire Early (FIRE) movement. For Carl and Mindy Jensen, this philosophy became a transformative force that reshaped their investment strategy and ultimately led them to amass a net worth of over $5 million. Their journey from traditional investing to a diversified portfolio is not just a tale of numbers; it’s a story of discovery, adaptation, and the pursuit of freedom.

Discovering FIRE

For most of his career, Carl Jensen envisioned a retirement in his 60s, a common aspiration for many. However, everything changed in his early 40s when he stumbled upon the FIRE community through influential blogs like Get Rich Slowly and Mr. Money Mustache. These platforms opened his eyes to an alternative path—one that promised the possibility of leaving the corporate world decades earlier than the average retirement age. Captivated by this idea, Carl set a bold goal in 2013: to build a $1 million portfolio and retire in 1,500 days.

To document this ambitious journey, he launched his own blog, 1500 Days to Freedom, where he and Mindy would share their experiences and insights. At that time, they weren’t starting from scratch; they had already been prudent with their finances, with about half a million dollars in investments, thanks to Carl’s consistent contributions to his 401(k) and their success in flipping homes.

Revamping Their Investment Strategy

With a clear early retirement goal in sight, the Jensens revamped their investment strategy. They began to shift their focus from individual stocks to a more diversified approach that included index funds and exchange-traded funds (ETFs). This strategic pivot proved fruitful, as their investments surpassed the seven-figure mark for the first time in 2016. By April 2017, Carl was able to quit his software engineering job, marking a significant milestone in their FIRE journey.

As of 2024, the Jensens have grown their investment portfolio from $586,000 in 2013 to an impressive $4.6 million. Their net worth, which includes their investments and primary home, now exceeds $5 million, a testament to their disciplined approach and strategic planning.

The Portfolio Breakdown

Individual Stocks

Despite their shift towards index funds, the Jensens still maintain a substantial investment in individual stocks, totaling nearly $2 million. Their portfolio is heavily weighted towards technology stocks, including giants like Tesla, Meta, Amazon, and Google. These investments were made prior to their deep dive into the FIRE movement, and while they acknowledge the risks associated with stock picking, they credit Carl’s extensive research and background in tech for their success in this area.

Mindy emphasizes, “I don’t want us holding individual stocks to be portrayed as some amazing way to grow wealth because we could have just as easily invested in something that went to nothing.” Their experience with individual stocks has been largely positive, but they recognize that it’s not a guaranteed path to wealth.

Index Funds and ETFs

About 20% of their portfolio is now allocated to index funds, including the Vanguard 500 Index Fund Admiral Shares Fund, the Vanguard Information Technology Index Fund ETF, and the Fidelity MSCI Information Technology Index ETF. Carl believes that index fund investing is “the right answer for almost everyone, including ourselves.” They wish they had discovered these investment vehicles sooner, as they offer diversification and low costs.

As they continue to evolve their strategy, Carl notes, “Almost all of our new money goes to index funds at this point in our life.” This shift reflects a broader understanding of the benefits of passive investing, which aligns with their FIRE goals.

Real Estate Ventures

Real estate has also played a significant role in the Jensens’ investment strategy. They have undertaken several “live-in flips,” where they purchase a home, renovate it while living there, and then sell it for a profit. This approach minimizes risk, as they are not burdened by the costs of maintaining a separate property during the renovation process.

Mindy, who works part-time as a podcast host for BiggerPockets and is a licensed real estate agent, is always on the lookout for the next great deal. However, the couple is gradually shifting away from flipping homes as they age and seek less labor-intensive investment opportunities. They are now exploring private lending, which offers attractive returns with less hands-on involvement.

Cash and Other Investments

The Jensens maintain a small cash reserve of about $3,000 and have made a unique investment in a local distillery owned by a friend. This diversification reflects their willingness to explore different avenues for growth while remaining grounded in their core investment principles.

Lessons Learned and Advice for Others

The Jensens’ journey underscores the importance of adaptability in investing. They recommend J.L. Collins’ book, The Simple Path to Wealth, as a foundational resource for those looking to understand the basics of investing.

Carl advises, “If they want to be completely passive, they should do index funds. But you can make more money with real estate if you’re willing to put the work in.” He cautions that real estate investing requires significant knowledge and effort, and for those lacking the time or expertise, index funds may be the better choice.

Conclusion

The Jensens’ financial journey is a compelling example of how discovering the FIRE movement can lead to profound changes in one’s investment strategy and overall financial outlook. By embracing a diversified approach that includes individual stocks, index funds, and real estate, they have successfully navigated the path to financial independence. Their story serves as an inspiration for anyone looking to take control of their financial future and explore the possibilities that lie beyond traditional retirement planning.