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).