Friday, January 13, 2023

December 2022 update ($735,525 -$27,492 or -3.6%)

↑ Growth fund is up $165 USD  or +0.3%
↑ EUR is up to USD by 2.9%, so for my portfolio its $7,096
Grand total gains: $7,261 USD

↓ GBP is down to USD by 2.4%, so for my portfolio its $1,585
↓ Emerging Markets Stock Index Fund is down by $6,145 or -4.9%
↓ Eurozone Stock Index Fund is down by $4,758 or -3.6%
↓ US 500 Stock Index Fund is down by $17,501 or -5.8%
↓ Global Small Cap Index is down by $4,764 or -3.4%
Grand total loss: $34,752 USD

December 2022 Financial independence update


I was hoping that there will be an end of the year rally but it didn’t occur.  December is end of the year summary.  A year ago I had $806K, I invested additional $120K in S&P500 index fund during the year.  Instead of getting close to a million the end result $735K, which should be discounted by nearly 10% inflation in 2022 in the USA.

 The worst performing assets were S&P 500 and USA small cap index funds (almost 19% percent loss).  I have about 20 years before planned retirement.  My assumption is to have to double the money (inflation adjusted) by then.  $1.5 million could be a fund that will last 20 years at $70 K a year withdrawal.

 The main risks are:

  • A recession which will undermine the growth (in 2009 the index had was at 756 from its highest in 2007 of 1,500 and it was not until 2013 when it recovered to 2007 level).
  • And / or need to withdraw some or all of the money.

To compensate for it I need to keep making conscious efforts to invest additional cash. The upside: possibility to retire (achieve financial independence) earlier.  

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