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Thanks to a smart investment, a British man is now able to retire early with the profits he made from selling some whiskey barrels.
Investing can be tricky, confusing, and intimidating for many people, especially those of us who don’t have time to watch the stock market all day. That’s why many people have chosen to invest in physical property, such as land, houses, and even whiskey barrels.
Roger Parfitt, a British man who made a really smart investment, is now able to retire early thanks to some whiskey barrels he purchased in the ’90s.
In 1994, Parfitt bought a cask of Macallan single-malt Scotch whiskey for £3,200 ($4,359), and a cask of Tobermory, for £1,500 ($2,043), according to reporting from the Telegraph.
He purchased the whiskey in the hopes that it would appreciate in value over time, but he also had a backup plan: if the whiskey didn’t make him a profit, he could just drink it.
“I bought it on a hunch at the time,” Parfitt told the British newspaper. “I remember thinking, if it doesn’t appreciate in value, the worst that could happen is that you would have to get it out of the warehouse, bottle it, and drink it. It always had that fallback for me—you could drown your sorrows if it didn’t work out financially.”
Lucky for him, the barrels did increase in value, making him so much profit that he is now preparing for early retirement.
Parfitt recently sold the casks for £225,000 ($313,200), giving him a 4,700% return on his investment, according to reporting from Food & Wine.
Even better, Parfitt discovered that according to Her Majesty’s Revenue and Customs, the UK tax authority, the casks are considered a “wasting asset” because, over time, water and alcohol evaporate. Thanks to this designation, he will not have to pay any taxes on the profits he made from selling the whiskey.
At only 59 years old, Parfitt is now able to retire from his job as a bank manager thanks to this investment.
Thrillist reports: “Naturally, he’s got big plans for his three-year-early retirement. Parfitt will be doing a few responsible things with the money, like paying off his mortgage, but he’ll also be having a little fun: He and his family are currently planning to take a little trip to Florida together.”
Parfitt also revealed that he isn’t done investing. He has plans to purchase a cask of whiskey each for his two children, hoping that they will have the same luck he did.
