Saturday, January 22, 2011

Investment Summary 2008 -2009

Investment Summary 2008 -2009 

One year later  (August 2009 summary):
- Savings: Accumulated more than $28 K USD for an investment ( which is 12.5% in  the currency I receive my salary in, but it is slightly below the  target in USD). I am under opinion that  Ruble is underestimated, so it does not cause a lot of concern to me, at the moment.
- Accommodation: As it tends to happen in Russia my building company is way behind it s big mouth promises and estimate time of new apartments handover is beginning of next year.
- I sent a request to re-invest my shares dividends s into buying more of those.
- Investment instrument is chosen and I became a bit more financially literate.

Investments in Bank of Moscow mutual funds:

 Short investment summary in mutal funds 2008-2009:

This is without taking into account lost profits ( If I would put money in USD on a deposit account for 4% annual interest rate).
Up to date my nest egg looks as following with a one year from now  (2010) forecast:
 * The results are not inflation deflated.

Exchange rates used:
A year 08.2008 –08.2009 summaries  in different currencies: 

Over loss in USD is more than 40 thousand dollars USA and even accumulated sum of $ 28 K could not take me back to where I was in summer of 2008, in USD value.  Should have I done this or it would be smarter to buy a new BMW?

Learning points:
- I would like to re-emphasize the simple fact that one should NEVER invest money you might need in next 10 years  (speaking about stock market you better treat them same as money allocated for a gambling).
- Despite the recession and extremely low interest rates offered by the banks I will continue to count  on 7% growth of Russian stock market  in period of 08.2009–08.2010 without  inflation deflating, as the market is undervalued. Main reasons are lack of transparency and bureaucratic conditions, as well as a lot of negative publicity.  I do not count of big changes in  investment climate, but I think that my investments will grow.

My goals for next year 08.2009 - 08.2010 are:
- Redecoration of apartment and put it on the market. Still optimistic about it, despite beginning of construction back in 2005. The money required for redecoration and buying some basic furniture are already put away and won’t be counted as investment, as well as the apartment itself. There is a slight possibility that I need it for living. However all disposal income coming from rental will be invested (I assume it begins coming in around Autumn 2010).
- Make a choice of how to invest already accumulated money ($28 K USD) and save another $28 K over next year. This is will be a challenge!
- Continue to develop financial literacy and complete my reading plan for this year (I will publish my list and some thoughts about the books I  have read).
-  I shall go online, as  I am really seeking for feedback. I struggled to do it last year,  due to various excuses but will strive to achieve ASAP.
- I shall publish last year family expenditure breakdown and do the same for coming year. 

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