Tuesday, May 7, 2019

April 2019 update ($513,167 +$17,838 or +%3.6)

↑ Emerging Markets Stock Index Fund is up by $3,693 or +3.0%
↑ Eurozone Stock Index Fund is up by $5,725 or +5.1%
↑ US 500 Stock Index Fund is up by $4,854 or +4.0%
↑ Global Small Cap Index is up by $3,447 or 3.1%
↑ Vanguard FTSE U.K. All Share Index is up by $79 or +0.3%
Cash to Invest  $2,832
Grand total additions: $20,546

↓ EUR is slightly down to USD by $2,116  or 1%
↓ GBP to USD is down by $592 or -2.6%
Grand total losses: $2,708
How to get to Financial Independence. My personal journey.

Observations:

It has been about two years, since my western european bank unfriendly policy encouraged me to invest into Vanguard directly.  Annualized rate of returns is for the past two years (including dividends reinvestment and fees are already paid):
  • Vanguard Emerging Markets - 6.3%
  • Vanguard Eurozone – 2.9%
  • Vanguard US 500 – 12.2%
  • Vanguard Global Small Cap - 6.7%
For the portfolio it is 7.1% (without currency fluctuations).  Inflation was about 3% a year in the US (official figures are artificially lowered to mask wages decreasing in real terms), which will leave me with 4.1% a year.  This should give me about $1.3 million in 25 years (real terms), should I choose not to invest any more money (assuming that the market will perform in the same way).
Most of the calculators assumed that the market will not (in western europe, while in the US same company is more optimistic!). 

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