Key facts
- Miguel Marquez, a 47-year-old university professor, achieved 'Lean FI' by saving approximately 70% of his income.
- He employs a modified 'permanent portfolio' investment strategy, dividing assets among stocks, bonds, gold, and cash.
- Marquez holds about 10% in cash and no more than 5% in cryptocurrency due to volatility.
- He earns about $75,000 annually after taxes and spends between $21,000 and $22,000.
- Marquez's approach prioritizes market stability and personal peace of mind over maximizing returns.
Miguel Marquez, a 47-year-old university professor, has achieved a state of 'Lean FI,' a minimalist approach to financial independence, by relocating abroad and consistently saving approximately 70% of his income. Marquez, who teaches French, Spanish, and personal finance in Shenzhen, China, earns about $75,000 annually after taxes and spends between $21,000 and $22,000.
His investment strategy centers on the 'permanent portfolio,' which traditionally allocates 25% each to stocks, bonds, gold, and cash. This strategy is designed to perform well across various economic conditions, with different assets expected to thrive during growth, downturns, deflation, or inflation. Marquez discovered this approach while researching financial independence strategies for Spanish investors.
Marquez has adapted the permanent portfolio to his circumstances. He holds about 10% in cash, rather than the traditional 25%, to maintain peace of mind and have funds available for investment during market downturns. He also limits his cryptocurrency holdings to no more than 5% due to its volatility and does not invest in real estate, citing his current lifestyle of subsidized housing and reliance on public transportation.
He views financial independence not as a retirement deadline but as the freedom to leave his career if circumstances change. Marquez attributes his accelerated progress to a combination of a solid income, a high savings rate, and an investment strategy he understands and can follow consistently.