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.

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.

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).