Thursday, April 28, 2016

April 2016 update ($356,789 +$33,661 or +10%)

Accumulated $4,000 USD as part of my annual saving goal for April
Vanguard Emerging markets (VFEM) is up by $ 706
Vanguard S&P 500 (VUSA) is up by $1,512
Gazprom shares is up by $19,600
Company shares are down by $3,065
Rosneft shares are up by $1,646
iShares Core DAX up by $ 1,389 USD
iShares Emerging markets sovereign bonds ETF is up by $300
iShares Emerging markets corporate bonds ETF is up by $560
GBP is up to USD, for my portfolio it is $211
Precious metals are down by $679
Grand total additions:  $ 33,661

Grand total losses:  none

-         Market is recovering I am still down ~ $ 33K in comparison with one year ago, mainly due to the over exposure to the energy sector. However as of today I reached myannual goal of $ 350K .  I hope it will stay  at this mark and I manage to accumulate another $20K before end of the year.  On my way to financial independence I need to focus more on the income generated, that is the most important thing. 
-     Whether portfolio is $350 K or $370 K relatively is of no importance, as much as it pleases the eye.  The plan is to have $10K in dividends by end of the year, which should cover about  10% of our expenses. Every  $30 K in savings would give another 1%.  At the current rate it means I need another $2,700 K  to be financially independent… it will take about 40 years to get there :-). The  compound interest of no real help , as  the returns are fairly low. 


  1. Wow, what a great month. Like every month I'm amazed at your 4k savings - but I'm also horrified about your 100k budget.
    If the house is paid of and we cut some things, we could do with 2k (Euro) a month. So 10k in dividends would be already 40 % for us.

  2. Hi eurfi,
    Many thanks for reading me. The month was very good, indeed. This was primarily ridden on speculation that Gazprom will double dividends, as new legislation asks to send 50% of profits distributed as dividends.
    Saving $4K a month it is not very difficult, as our family needs are met. If we would earn $100K a year more, we set aside $100K extra. I do not believe that you need to save percentage of your savings, although it is good for building plans and assumptions. It is rarely realistic.
    For example, we are paying $1,2K a month for one child full day care and $0.5K a month for the other (afterschool club, activities, etc.). This is 20% of annual budget, with all other expenses it goes up to 25%. It is likely that even if wife would be able to cover only child care she would work anyway, as in 6 years times kids go to school, but you keep earning some money.
    We did some effort but curtailing our needs, preventing splashing the money. I glad that we did, as this year I have to take a pay cut for about 4 years, while will reduce savings, however we likely to have exactly the same budget. As much as I love financial independence I cannot force my family to live a Spartan life until I absolutely have to.

  3. Yeah good amount saved for this month. Congrats FI. I look forward to seeing you get closer to financial independence.

    1. Hi Dividend Family Guy,
      Many thanks for stopping by. Financial independence is nowhere near on the horizon, at the current rate of savings. $50K a year gives you about $2K in income. It is a 25-30 year run at the very least, praying consistency. Last 10 years stock market was more of boom-bust , rather consistent growth of any kind. However I am doing my best and see what happens.