Tuesday, January 26, 2016

January 2016 update ($281,248 -$14,288 or -5%)

Accumulated $4,000 USD as part of my annual saving goal for January
I received some additional vested Company shares. Total amount vent from 272 to 624.  The share  price collapsed by 40% over the course of the year, so the increase in the number of shares added  $6,208  to my portfolio.
Received Vanguard S&P 500 (VUSA) – 178 EUR or 1.81% annually.
Received Vanguard Emerging markets (VFEM) – 52.5 EUR or 1.71% annually.
Grand total additions:  $ USD 10,460
 
Vanguard emerging markets ETF lost $1,504 USD
Vanguard S&P 500 ETF lost $3,837 USD
Gazprom shares lost $13,080 USD
Company shares lost $1,831 USD
Rosneft shares lost $801 USD
iShares Core DAX lost $916 USD
EUR lost to USD 1% or $1,774 USD
GBP lost to USD 6% or $1,372
Precious metals lost 2% or $179 USD
Grand total losses:  $ USD 25,294
There is a difference in $546 USD this is attributed to the fact that I spent some GBP to buy ETF nominated in USD.

Wednesday, January 20, 2016

Real life portfolio performance 2015 and retrospective


2015 Values
Performance indicator
Comments
Absolute return
$, K
%
This is without taking into account accumulated $ 48 K
-25
-9
Relative return
S&P 500, %
Portfolio, %
 Exposure to emerging markets and energy sectors
0.8
- 9
Cash accumulated in 2010 money
Planned $, K
Actual $, K
On target.
48
48
Personal plan
in 2010 money
Planned $, K
330
Actual $, K
244

The  target is not becoming currently achievable, as at the beginning of the year I have had only $244 K in 2010 money, so I had to reduce it for 2016, so it is realistic:
Year
2008
2010
2011
2012
2013
2014
2015
2016
Money of the day
actual
153,400
119,800
165,600
226,800
298,400
288,608
295,536

Target





370,000

350,000
Inflation %

2
3.5
3
4
4
3
4
Cumulative inflation

1.02
1.06
1.09
1.13
1.18
1.21
1.26
2010 money
153,400
117,451
156,967
209,032
265,244
244,583
244,244
277,777
In another words if in 2010 you would have $ 10,000 and keep it, it worth $7,930 today.

Wednesday, January 13, 2016

2016 Financial Independence Goals



Financial goals.
- Accumulate at least $24K a year. Stretched target - $50K.
Note: I have started looking for a new job back in April. I found it and accepted the job but it will not allow me to maintain the same level of savings, as I used to have last four-three years. I expect average savings rate will be $12 - $18K a year. Family budget will not be affected.  The stretched target will only be true if I start the new job later than currently planned.
- Portfolio should be able to generate $8,000 a year after taxes in the money of the day. The reason for it is my significant stake in the energy companies, which are unlikely to finish restructuring next year to adjust to lower prices.
- Develop additional income source in full, potential reward about $2,000 a year.
- Less than 5% of portfolio in cash by end of the year and $350 K overall net worth in the money of the day.

 Blog:
- Regular monthly updates.
- To cover 6 themes on financial independence.
- Publish easy tracker for the long-term portfolio performance.
 
Educational:
- Create list of books to read - 12 books is minimum.
- Read the books.
- Publish the books reviews.

Family Budget:
- Stay under $100,000 with the family expenses.
- Accumulate $7,000 towards durable goods replacement over 10 years.

Be happy.  Run 1,000 miles during the year. Keep BMI below, target 26.6 (current 27.5).

Thursday, December 31, 2015

2015 Financial Independence Goals ($295,536 +$22,649 or +8%)



Financial:
- Accumulate at least $48,000 (This is  $40,000 in 2010 money)  or $4,000 a month for investments during 2015, beginning  2016. – Complete. This has been done, $4,000 a month like a clock work.
- Portfolio should be able to generate   $9,000 a year after taxes in the money of the day  (In 2014 it was $7,500). Stretched target – $10,000.  NO. Actual dividends were $6,000 after taxes, which less  to the previous year. Two main reasons:
#1 I am sitting on a pile of cash, not investing them, i.e. not translating them into dividends (~ $100 K).
#2 USD is stronger, so the companies with operations outside US struggling to deliver performance.
Dividends for 2015:
S&P 500 Index fund ~ 740 USD after taxes or 1.7%
Emerging markets fund ~  500 USD after taxes or 3.5%
Rosneft ~ 250 USD after taxes or 3.3%
Gazprom ~ 4,500 USD after taxes or 4%
Average dividends 3% after taxes.

Sunday, December 27, 2015

December 2015 update ($295,536 -$7,218 or -2%)


↑ Accumulated $4,000 USD as part of my annual saving goal for December
↑ Received 4 additional Company shares for re-invested dividends ($0.47 USD per share before taxes or 5% annual dividends).
↑ Precious metals went up by $318 USD
↑ EUR appreciated to USD by 4% or $6,725 USD for my portfolio.
Grand total additions:  $11,044 USD

↓Emerging markets lost 6% or $763 USD
↓Vanguard S&P500 lost 2% or $1,049
↓ GazProm shares lost 12% or $12,720
↓ Company shares combined lost $1,264 USD or 8%
↓ Rosneft lost 14% or $1,224 USD
↓ iShares Core Dax lost 5% or $583
↓ GBP lost to USD 2% or $657 for my portfolio
Grand total losses:  US$  18,261

Tuesday, December 15, 2015

The U.S. Middle Class is Losing Ground

Pew Research Center recently published a very interesting report on what is happening to the middle class in the US.  The report itself freely available online is recommended for reading, however if you do not have time to go through all 74 pages of it, I will share my observations and reaction to it. In 2015, 20% of American adults were in the lowest-income tier, up from 16% in 1971.   
Financial Independence - Household income in the USA 2014 - http://www.niterainbow.com
        For the three person household the middle-income range was about $42,000 to $126,000 in 2014 dollars. Lower income households have incomes less than two thirds of the median and upper  income households have incomes that are more than double the median. Under this definition, the middle class made up 50% of the U.S. adult population in 2015, down from 61% in 1971.      In early 2015 120.8 million adults were in middle-income households, compared with 121.3 million in lower and upper-income households combined. Number of adults living in the middle income households has been steadily declining from 1971 to 2015.  As one commentator put it: American dream used to be a to own a house and two cars, new American dream it is to have a job. 

Friday, November 27, 2015

November 2015 update ($302,754 -$4,084 or -1%)

Accumulated $4,000 USD as part of my annual saving goal for September
iShares Core DAX are up by 404 USD
Grand total additions: US$  4,404 USD

Emerging markets ETF lost $223 USD
Gazprom shares lost $1,325 USD
Company shares combined lost $236 USD
British pound is lost to USD 3% over one month, for my portfolio it is $2,521 USD
EUR lost to USD or $3,721 USD
Precious metals lost $462 USD

Grand total losses:  US$  8,488