Thursday, May 5, 2022

April 2022 update ($776,929 -$61,670 or -7.9%)

↓ Emerging Markets Stock Index Fund is down by $1,073 or -0.8%
↓ Eurozone Stock Index Fund is down by $2,799 or -2.1%
↓ US 500 Stock Index Fund is down by $29,025 or -14.5%
↓ Global Small Cap Index is down by $12,297 or -8.0%
↓ Growth fund is down by 1,043 or -1.5%
↓ EUR is down to USD by 4.5%, so for my portfolio its $12,722
↓ GBP is down to USD by 3.8%, so for my portfolio its $2,710
Grand total losses: $61,670 USD

April 2022 financial independence update

Thursday, April 14, 2022

March 2022 update ($838,599 +$84613 or +%11.2)

↑ Financial independence savings for last month $68,000
↑ US 500 Stock Index Fund is up by $17,567 or +6.2%
↑ Global Small Cap Index is down by $1,406 or +0.9%
↑ Growth fund is up by 3,054 or +4.5%
Grand total additions: $90,027 USD

↓ Emerging Markets Stock Index Fund is down by $1,059 or -0.7%
↓ Eurozone Stock Index Fund is down by $757 or -0.5%
↓ EUR is down to USD by 0.9%, so for my portfolio its $2,544
↓ GBP is down to USD by 1.5%, so for my portfolio its $1,084
Grand total losses: $5,444 USD

Financial independence March 2022 update

Thursday, March 10, 2022

March Trade and protection against inflation

I have been saving $2,000 a month for the past two years plus and was able to accumulate $52 K USD.

It was interested in how to protect my portfolio against raging inflation (the UK official inflation in 2022 is 6.7%, actual over 8%, the USA official inflation in 2022 – 7.9%,  actual is over 10%).  From many assets – equities, bonds, real estate, precisions metals, art, etc.… historically the best protection were commodities. 

My current Vanguard branch stopped dealing with retail /personal investors and only deal with professional ones. This means that I can keep my account and top it up but a new fund minimum opening threshold is $ 1 million.  While idea to diversify and invest in commodities fund is still alive, I invested some additional money into one of my existing funds.

I admire some of the EU legislation. For example, I transferred money from GBP to USD to pay for the extra shares.  I thought, at the time, that the exchange rate given by the bank was reasonable.  I bought the USD at 1.3158 , the exchange rate on the day was  between 1.3114 to 1.3187.   According to EU legislation the banks have to report how much money did they make on that transaction.  My bank made 1.5%, so the bank made $1,500 for every $100,000 USD of money transferred.  It made me thinking.

While Europe has the fourth war during the past one hundred years on its territory. Western europeans citizens will pay heavy price for their leaders’ inability to negotiate and make a deal. I actually think they will push economy into a recession with a high inflation.

In the mean time I took some risk and invested some money from my emergency fund.  All together I invested $120 K USD. This covers my target savings rate until end of 2024.  It pushed my cumulative nest egg from $753 K to about $820K, at the time of the trade.   If I could earn inflation adjusted interest of 3%, without further additions I should have $1,500 K by the time I retire. This is today’s money. 

 

March 2022 Trade and protection against inflation


 

Monday, February 28, 2022

February 2022 update ($753,986 -$18,889 or -%2.4)

↑ Financial independence savings for last month $2,000
↑ Global Small Cap Index is down by $339 or +0.2%
Grand total additions: $2,339 USD

↓ Emerging Markets Stock Index Fund is down by $5,844 or -3.9%
↓ Eurozone Stock Index Fund is down by $7,809 or -5.2%
↓ US 500 Stock Index Fund is down by $6,076 or -3.0%
↓ Growth fund is down by 1,499 or -2.1%
Grand total losses: $21,228 USD

February 2022 Road to financial independence


Monday, January 31, 2022

January 2022 update ($772,875 -$33,564 or -%4.2)

↑ Financial independence savings for last month $2,000
Grand total additions: $2,000 USD

↓ Emerging Markets Stock Index Fund is down by $648 or -0.4%
↓ Eurozone Stock Index Fund is down by $5,437 or -3.5%
↓ US 500 Stock Index Fund is down by $10,986 or -5.2%
↓ Global Small Cap Index is down by $12,433 or -7.6%
↓ Growth fund is down by 3,378 or -4.6%
↓ EUR is down USD by $2,683 or -0.9% for my portfolio
Grand total losses: $35,564 USD
January 2022 Journey to Financial Independence

Saturday, January 1, 2022

December 2021 update ($806,438 +$29,631 or +%3.8)

↑ Financial independence savings for last month $2,000
↑ Emerging Markets Stock Index Fund is down by $1,843 or +1.2%
↑ Eurozone Stock Index Fund is up by $7,277 or +4.9%
↑ US 500 Stock Index Fund is up by $8,983 or +4.5%
↑ Global Small Cap Index is up by $5,872 or +3.7%
↑ Growth fund is up by 920 or +1.3%
↑ EUR is up USD by $2,736 or +0.9% for my portfolio
Grand total additions: $29,631 USD

December 2021 Financial independence update

November 2021 update ($776,808 -$22,737 or -%2.8)

↑ Financial independence savings for last month $2,000
↑ Growth fund is up by $2,513 or +3.5%
Grand total additions: $4,513 USD

↓ Emerging Markets Stock Index Fund is down by $2,772 or -1.8%
↓ Eurozone Stock Index Fund is down by $5,162 or -3.3%
↓ US 500 Stock Index Fund is down by $1,524 or -0.7%
↓ Global Small Cap Index is down by $8,182 or -4.9%
↓ EUR is down to USD by $7,965 or -2.6% for my portfolio
↓ GBP is down to USD by $1,645 or -2.3% for my portfolio
Grand total loses: $27,250 USD

November 2021 Financial Independence update