This Guy Gets to Retire Early Because He Bought Whiskey Casks in 1994
Roger Parfitt is making a 4,700% profit on his whiskey purchases.
Investing can be complicated, confusing, and intimidating for those of us that aren't good with numbers or interested in watching the stock market day in and day out. There are other ways to invest your money though, like buying property—or whiskey barrels, apparently. Just ask Roger Parfitt, a British man who's retiring early thanks to some whiskey barrels he bought in the '90s.
Parfitt bought a cask of Macallan single-malt Scotch whiskey in 1994 for £3,200 ($4,359). He then bought a second cask, this time of Tobermory, for £1,500 ($2,043), according to the Telegraph. While he bought the booze hoping that it would appreciate in value over time, he figured that if it didn't he'd just drink them. Solid strategy.
"I bought it on a hunch at the time," he 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."
The barrels did, however, increase in value. So much so that Parfitt is preparing for early retirement.
Even better, Food & Wine reports that according to Her Majesty's Revenue and Customs, the UK tax authority, the casks are a "wasting asset" because, over time, water and alcohol evaporate. Because of this designation, Parfitt doesn't even have to pay taxes on the profits from the sale of his two casks.
Thanks to his smart investment, Parfitt is hanging up his hat as a bank manager at only 59 years old. 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.
He's far from done investing too. Parfitt plans to get back in the booze game, buying a cask of whiskey each for his two kids in the hopes that they'll have as much luck as he did, he told Luxurious Magazine.
h/t Food & Wine