Meet the 38-Year-Old Who Retired Early Using Nothing but Index Funds
- Samrat Investments
- Apr 9
- 3 min read
The Unlikely Path to Early Retirement
Most people dream of early retirement, but for many, it remains just that—a dream. The idea of leaving the workforce decades before traditional retirement age seems reserved for the lucky, the ultra-wealthy, or those with an inheritance. But what if I told you that an ordinary individual—without a high-paying tech job, a business empire, or lottery winnings—achieved financial independence and retired at 38 using only index funds?
This is the story of Arun Mehta, a former middle-class engineer who cracked the financial code using nothing but consistency, patience, and index funds.
A Modest Beginning
Arun grew up in a typical middle-class household in Pune, India. His parents, both government employees, taught him the importance of saving but had little exposure to investing. They believed in fixed deposits, gold, and the occasional real estate investment—safe, predictable, but slow-growing assets.
"We were taught that hard work leads to security," Arun recalls. "But I realized that security doesn't mean freedom. I didn't want to work until 60."
His journey toward financial independence began at 23 when he got his first job as a software engineer earning ₹8 lakhs per year (~$10,000 at the time). It wasn’t a fortune, but Arun made a critical decision early on—he would save and invest aggressively.
Discovering the Power of Index Funds
Arun stumbled upon a blog post about the FIRE (Financial Independence, Retire Early) movement, a community of people who aimed to retire decades ahead of schedule through extreme saving and investing in low-cost index funds.
"I was skeptical at first," he admits. "But the math made sense. The stock market had historically returned around 7-10% per year over the long term, and index funds offered those returns without the need for constant monitoring."
Instead of chasing individual stocks or timing the market, Arun did the following:
Lived on 40% of his salary – Cutting unnecessary expenses, avoiding lifestyle inflation, and sharing rent with roommates.
Invested 60% of his income in index funds – Sticking to broad-based funds like the Nifty 50 Index and the S&P 500.
Maximized tax-advantaged accounts – Using PPF (Public Provident Fund), EPF (Employee Provident Fund), and NPS (National Pension System) for tax-efficient growth.
Stayed the course through market crashes – Avoiding panic selling during downturns like 2008, 2020, and 2022.
Compounding: The Silent Wealth Builder
Most people underestimate how powerful compounding is. By the time Arun turned 30, his portfolio had grown to ₹1.2 crores (~$150,000). He wasn’t rich yet, but the magic of compounding had taken hold.
At 32: ₹2.5 crores (~$300,000)
At 35: ₹5.5 crores (~$650,000)
At 38: ₹9 crores (~$1.1M), enough to generate ₹40-50 lakhs annually in passive income
"Once my portfolio hit ₹9 crores, I knew I was done," Arun shares. "Even if I withdrew 4% per year, I would have more than enough to live comfortably."
Life After Retirement at 38
What does a 38-year-old retiree do all day? Arun’s life isn’t about luxury yachts or endless vacations—it's about freedom.
Traveling: He explores new cities, spending months in places like Bali, Portugal, and Japan while maintaining a low-cost lifestyle.
Passion projects: Writing a personal finance blog to help others achieve financial independence.
Part-time consulting: Occasionally helping startups with tech strategy for fun, not for money.
Spending time with family: Something he couldn’t do when stuck in a 9-to-5 job.
Lessons From Arun’s Journey
Start early, but start regardless – Even if you’re in your 30s or 40s, it’s never too late to begin investing.
Live below your means – Avoid lifestyle inflation; your future self will thank you.
Index funds work – You don’t need to be a stock-picking genius; just invest consistently in broad-market funds.
Patience is key – Market fluctuations are normal. The real winners stay invested for decades.
Money buys freedom, not luxury – The goal isn’t a flashy life but the freedom to live on your terms.
Can You Do the Same?
The short answer is yes, but it requires discipline. You don’t need a high salary or extraordinary luck—just a system. Save aggressively, invest in index funds, and let time do the rest.
Arun’s story isn’t a one-off miracle. Many people across the world are achieving early retirement through the same principles. The real question is: Will you start today?
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