August 2018 update ($501,663 +$25 or +0%)

↑ US 500 Stock Index Fund is up by $3,781 or 3.2%

↑ Global Small Cap Index is up by $2,639 or 2.2%

Grand total additions: $6,420

↓ Emerging Markets Stock Index Fund is down by $2,781 or 2.2%

↓ Eurozone Stock Index Fund is down by $3,314 or 2.7%

↓ GBP is down to USD by 1.7% or $215

↓ Vanguard FTSE is down by 0.6% or $83

Grand total losses: $6,393

Monthly update on financial independence - tru real life story

Observations:

  The Eurozone and British Pound continue to slide over uncertainty whether the UK can become an independent country and their competitiveness over the USA and China.  Eurozone is submerged into politicking and sanctions rather than building a strong economy. This explains that Eurozone grew 5%, while the SP500 by 19% over last 12 months. Western European markets is bi-polar asset class. We go through cycles where people either love it with a passion or hate it with a vengeance. Typically, these are the same people. Maybe it’s not the asset class that is bipolar.

I am happy to pass $500K mark for my largely passive portfolio now.  I had a modest salary increase which allows me to increase the annual saving rate from $11K to roughly $17K.  In absence of pension scheme this is not a lot but I have 25-30 years to go.

The saving rates on cash are continuing to be held artificially low, below the inflation rate. The government is actively preventing crisis in the real estate/housing market at the expenses of the savers.   To be financially independent at withdrawal rate 3% I will need roughly $50K a year after the house is paid off 0r $1.5 million or move to a really cheap country.