Monday, July 1, 2019

June 2019 update ($516,633 +$28,734 or +%5.9)

EUR is slightly up to USD by $2,063 or 1%
Additional cash to invest $1,262 under my pension plan
Emerging Markets Stock Index Fund is up by $4,728 or +3.9%
Eurozone Stock Index Fund is up by $5,884 or +5.2%
US 500 Stock Index Fund is up by $8,256 or +7%
Global Small Cap Index is up by $6,206 or +5.8%
Vanguard FTSE U.K. All Share Index is up by $585 or +2.4%
Grand total additions: $28,984

GBP to USD is down by $250 or -0.9%
Grand total losses: $250
June 2019 Financial independence - how to


The USA is seemingly resolved trade disagreements with China, at least temporarily. Politically motivated accusations of Huawei espionage were suspended for the time being in a favor of economic prosperity.  I wish that EU would be as pragmatic with its neighbors as the USA and focus more on economy and cooperation.
I decided to combine private and company pension pots. This will keep the relatively small pots together and admin fee in the company plan is o.25% a year.  I expect that by same time next year the net worth is about $50K (from current $33K),  This will probably take a few months before the move complete.

Retirement / financial independence.
Current estimation (assuming retirement at 65 yr) and the same monthly contributions will enable me to have $50 K a year pre-tax as income. This slightly below (I need $60K a year) our expenses (assuming the kids leave the nest and mortgage is paid).  
The estimate is based on historical US market performance, not the diversified portfolio I have.  EU is historically trailing behind US.  To compensate this I need to increase my monthly savings from $1.2K to $2.4 K a year (If I want to have $60K a year and offset the diversity).

To retire at 60 years I need to increase savings to $4.5K a month. If I stop investing now, at 60yrs I could have $28K, at 65 years - $32K a year.   This is quite clearly demonstrating advantage of early investments /time.

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