Wednesday, April 15, 2020

How the rich stay wealthy all their lives

     Recently I published a story demonstrating why the rich will stay rich and the poor are always disadvantaged using the current rules.
I also took some steps, to invest some money I had into the kids’ portfolio. This portfolio can not be taken away from them, even if I or they need the money badly.
     The new tax year started recently and the market was still quite volatile.  I took this opportunity and invested additional money into the kids accounts. I used all allowances for this year (~ $11,000 per child).  All the money went into S&P500 fund.
why the rich will stay rich
    The blue line the three investments I made.  For reference:  All time high was 250 on January 02, 2020.  Low during the COVID19 shutdown was 190.  Average of the three transactions I bought shares for 211.1   Today the portfolio is up by 4% or $1,400.
    The market volatility is far from over. We will still experience some wild Russian roller coaster rides.  However, I don’t see that it will sink below 190 again.
     In difficult times such as now, my provider got a little bit greedy. I put the last order over the weekend, when actual price was 205. They closed the order on Monday at highest price of the day at 211.  Because of it, I cannot really do opportunity trading with it.  If market will be back to 240 in two years’ time it is still 7% a year return.

Assuming that I will continue contribute until they are 18 years old:
- For the older child, in the worst-case scenario its college money or $100,000 college graduation money.   
- For the younger one its $150,000 college graduation money.   
All sums are in today’s money.

Did you do any trades during the roller coaster or just sat tight?

Thursday, April 2, 2020

March 2020 update ($441,319 -$82,344 or -%15.7)

Financial independence savings for last month $2,000
Grand total additions: $2,000 USD

Emerging Markets Stock Index Fund is down by $18,457 or -15.3%
Eurozone Stock Index Fund is down by $19,297 or -17.2%
US 500 Stock Index Fund is down by $15,901 or -12.4%
Global Small Cap Index is down by $22,499 or -20.7%
Growth Fund is down by $6,111 or 12.1%
GBP is down USD by 4.7% or $2,079 for my portfolio
Grand total losses: $84,344 USD

A journey to financial independence - personal how to guide