Wednesday, November 27, 2013

November 2013 update ($307,800 +$12,300 or + 4%)



The portfolio changes:
↑ Accumulated additional 7,000 USD as part of recreating my Emergency fund, this is for October and November.
↑ Vanguard Energy ETF up by 1,800 USD
↑ Vanguard 500 Index up by 1,100 USD
↑Company shares dividend reinvestment programme added additional 4 shares and some growth. Overall 580 USD up.
↑ GazProm shares are up by 5,580 USD
↑ Vanguard SPX 500 ETF dividends - quarterly dividends – 66 USD after taxes.
↑ Grand total additions:  16,126 USD

↓ Precious metals lost 370 USD (chiefly due to fact that RUB is weaker towards USD).
↓ Rosneft shares are up by 1,330 USD
↓ EUR is lost towards USD, while GBP gained, some. Overall change is 2,100 loss on month to month basis.
Grand total losses are 3,800 USD

  Observations:
-         While working and earning money it is easy to overlook – how much does it cost to keep your portfolio. In my case I pay almost 500 USD a year to maintain my account. Cumulative dividends are 7,200 USD. In other words I need to invest additional 40,000 USD to keep the account running. Current expense ratio is 7%. Could kill any investment. Admittedly in the long run with the portfolio growing in size the price will stay the same and the ratio will go down.
-         If you participate in your employer pension scheme, total contribution could vary from 5% to 30% of your income.  The figures make me humble, as I am only contributing 35% at best, while being fortunate to be on a short term but relatively lucrative contract.
-         Current saving rates are not inspirational, but on target. It will take another 20-25 years to reach financial independence.


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