↑ Emerging Markets Stock Index Fund is up by $3,257 or +1.8%
↑ Eurozone Stock Index Fund is up by $5,307 or +2.4%
↑ Global Small Cap is up by $1,817 or +0.9%
↑ Growth fund is up by $297 or +0.3%
↑ Additional investment savings $2,500
↑ EUR is up to USD by 2.6% or $10,862 for my portfolio
↑ GBP is up to USD by 1.5% or $1,557 for my portfolio
Total gains: $25,597
Observations:
Financially wise, it was a good year for me – the market was up and I earned 24.6% on my investments, saved some money for my retirement account. I paid my mortgage for another year.
As you could tell from my family budget next 9 years are heavy lifting for me – schools, universities. I had a privilege to finish university debt free, thanks to the scholarship, my parent and working part time. It was very frugal life, but I left uni with zero debt.
Just before heading for New Year break, I had end of the year conversation with my manager. After soliciting some information, I was told that I will have no job from April onwards. I work for one of the big, so-called “international companies”. In my case its an old colonial European one. Over the years I had to bent backwards to stay employed, work more than others and do unpleasant tasks. I tolerated all that due to high pay, but racism and “Aryan” values prevailed. The company’s output shrank over 25% in the past 20 years or in the management words “they have been high grading portfolio”.
Being routinely harassed and discriminated at work, I have been a reasonably good squirrel over the years, considering that I was paid less than my colleagues doing the same job. There will be a redundancy pay which should cover one year of the current expenses. I have also set money a side, as a cash for that eventuality.
I have been actively looking for a job and getting some interviews but not nearly the same pay. To give you an idea, in my company there are no outsiders in the experienced professional categories roles.
I am now focusing on cash-flow continuity. Without a smooth job transition I will be burning 16K USD a month.
For the next 4.5 years I need about 16K USD a month after taxes to maintain the same life style. By October 2030 it can be reduced to 12K USD a month, and in two years to 9 K USD a month or less.
If I can secure the role to cover the expenses, I can pocket the redundancy package and invest it into the financial independence nest egg. However, this looks unlikely, at the moment.
Most likely I will use the redundancy package to cover the school and first uni. In this case I need 11K USD a month to cover the expense saving toward the second uni over the next four years.
Both scenarios assume that the nest egg will be protect, although no future contributions. Assuming post inflation growth of 3%, the nest egg will be 1.74 million in 10-year time. There are multiple possible outcomes here, my advice to the people who aren’t facing it – be a good squirrel and keep saving money, hopefully this day will never come to you.
I have had plenty of sleepless nights and mild heart burns since I learnt the news. At the back of mind I have also kept the idea that I can ride it out even without finding a job immediately, while keeping my financial independence nest egg intact.
This is my next 2026 year goals: job continuity and health recovery.
Fun fact: The word “bankrupt” is from the Italian banca rotta, literally “broken bench.” In the years of early banking, people who exchanged, stored, and lent money did their business in the public marketplace at a bench. If the man at the bench, or the “banker,” ran out of money or was unfair, his bench would be broken.
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