The Courage of a Professional 5 Years from Retirement: The S&P 500 is My Backbone

 "Aren't you worried about having such a high exposure to stocks when your retirement is just around the corner?"

As the milestone of my early retirement—a target I have set for February 2031—approaches in just a few years, people around me have begun to look on with increasing concern. They wonder how I can leave the vast majority of my wealth in the stock market, tied to volatile indexes, with my working days drawing to a close. They ask what I would do if a sudden market crash hits right as I transition.

Yet, instead of letting their anxiety sway me, I quietly smile and look back at the framework of my portfolio. The S&P 500 stands firmly at the center of my investments. It is the unshakeable backbone supporting my entire journey toward retirement.


"Others only see the stocks, but I see the roles of my accounts."

To others, my portfolio might look like nothing more than a risky pile of equities that could plummet at any moment. However, the true reason I remain completely unfazed by market noise is that my accounts are strictly segregated through a systematic approach, each performing its own dedicated role.

I have never put all my eggs in one basket. My portfolio is solidly divided into three distinct parts: a general brokerage account, a retirement IRP, and a personal pension savings account. I have carefully mapped out the pathways for my money, separating the funds I will need to draw down immediately after retirement from the long-term capital meant for ten or twenty years down the road. Within this system of clearly defined roles, I know with absolute certainty that my safety belt is securely fastened, even if a market crash occurs tomorrow.

Furthermore, by keeping a significant portion of my wealth in dollar-based U.S. indexes, I have built a powerful buffer against potential currency depreciation and foreign exchange risks. While others obsess over the daily red and blue flashes on their screens, I simply enjoy peace of mind within the fortress I have already built.


Running a Marathon, Not a 100-Meter Dash

Investing without taking risks is equivalent to doing nothing at all. My long-standing philosophy is that to enjoy the fruits of long-term compounding interest, one must fully accept and endure the waves and volatility along the way.

People often grow anxious, treating daily fluctuations as a matter of winning or losing. For me, however, this investment is a lifelong marathon that extends twenty or thirty years beyond my retirement date. If you believe in the decades of capitalist history that prove the long-term upward trajectory of the U.S. market, there is absolutely no reason to stop running just because the current weather is a bit gloomy. By ignoring short-term market noise and capturing the historically proven average returns, my portfolio will become a fountain that never runs dry, sustaining my life long after I stop working.

Just like the mindset in Episode 12, where I mechanically bought stocks on the 25th payday and slid my smartphone deep into my pocket, my courage ahead of retirement remains exactly the same. As long as I have the S&P 500 as my foundation, time is never my enemy; it remains my most powerful ally. The market will do its job, so we can simply live our happy daily lives upon a solid framework.

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