↑ Financial independence savings for last
month $2,000
↑ Emerging Markets Stock Index Fund
is up by $8,498 or +6.3%
↑
Eurozone Stock Index
Fund is up by $18,738 or +17.1%
↑ US 500 Stock Index Fund is up by $15,535
or +10.9%
↑
Global Small Cap Index
is up by $17,618 or +15.3%
↑ Fidelity Growth Fund is up by
$5,157 or +9.7%
↑ EUR is up to USD by $7,021 or 2.9%
for my portfolio
↑ GBP is up to USD by $1,357 or 2.3% for
my portfolio
Grand total
additions: $75,923 USD
Observations:
What an incredible month!
Governments and companies took on
$15tn more borrowing in first nine months of 2020.The pace of debt accumulation
will leave the global economy struggling to reduce borrowing in the future
without “significant adverse implications for economic activity”. The total
level of global indebtedness has increased by $15tn this year, leaving it on
track to exceed $277tn in 2020. It expects total debt to reach 365 per cent of
global gross domestic product by the end of the year, surging from 320 per cent
at the end of 2019. High debt levels will lead to zombie banks and zombie
companies that constrain growth.
US junk bond fell to 4.8 percent,
marking “a new all-time record low” for the asset class. I need to think where to invest my cash, as
there is too much competition for the bonds at the moment.
Fun fact: The UK tax code is the longest in the world,
made for the rich.
If I set up a
company, pay myself in dividends and keep excess money in the business. I liquidate
the company a few years later, claim business asset disposal relief and pay
only 10% on the proceeds. Director of
the company will pay $130,00 less in tax over the five years, than self-employed
person on the same salary of $195,000 a year. The director pays 20% less tax
over the five years. No wonder, business owners called salaried workers “stupid”.
The result has been to foster generations of billionaires who have paid lower
tax rates than their cleaners.
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