November 2020 update ($651,344 +$75,923 or +%13.2)

↑ 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.