Wow, it’s already December! This year seems to be passing by in no time. Winter is officially here, although I can’t remember when the last time I saw some proper snow was. Still I invite you for a winter theme game (if you don’t wanna join, you can still watch from your warm room). I’m going to roll a snowball. A dividend snowball! I start with something small, but on its way down the mountain it’s gonna be bigger and bigger like no one wants to stand on its way! Check out how I’m planning to do it!
Another month has passed, another monthly overview is here. I did not plan November to be particularly special, still so much has happened that I even don’t know where to start. So let’s don’t waste any time, let’s see whether this month has taken us closer or further away from financial independence!
One of the biggest achievement of mankind was when people have changed from gathering to growing food. Later on cultures in the valleys of rivers like the Nile, Euphrates, Ganges and Yangtze started to flourish.
This has happened more than ten thousand years ago, and history has proven that great civilizations can only emerge from strong economies.
The discovery that you can grow your own crops, domesticate livestock had such a big significance that it only can be compared with the start of using of tools, the invention of wheel, or the free WiFi 🙂
One of the easiest forms of investing is via purchasing an ETF (Exchange Traded Fund). This investment form has first been introduced in 1993 and by today it became extremely popular. In 2015 there were over 4,000 different types of ETFs, therefore the choice is endless.
An ETF can suit almost all kind of investment needs from simple index ETFs (e.g. VTI, which represents the total US stock market) through sector ETFs (e.g. VFH, which represents the US financial sector) to some really wide spread investment vehicles (e.g. GIVE, which holds both US and global stocks, just as bonds, all focusing on environmental friendly and sustainable themes).
It’s been a week since we know that the next president of the US will be Donald Trump. Once thing I can promise: this is never gonna be a blog about politics. Also this post will be totally politically neutral. First of all it’s easy for me to be neutral as I live in Europe. Secondly everyone must respect the decision of the American people; at the end of the day the guy got almost as many votes from them as Hillary 🙂 But let’s stick to the topic of finance and let’s see what kind of conclusions we can make from this week!
You might have heard from many different sources around you that rent is money thrown out the window and if you can pay the same amount of money (or even more) as a mortgage, you’re much better off. Well, based on what we saw in the previous chapters of this series, we need several factors in our favor in order to prove this statement, and even in those cases we might need many years to enjoy the real financial benefit of home ownership. One of the factors that people tend to forget about are all the costs that you need to pay as a homeowner but not as a tenant.
Today’s post will be about emotions and how you should put them aside when making investment decisions. Investment is about numbers, percentages, ratios and other, factual things. There should be no place for emotions here. At the same time we continuously meet with emotional impacts that can affect our investment decisions. They can come from many sources: analyst up- or downgrades, the new super investing opportunity we hear from our neighbor, headlines of financial news, or the result of the presidential elections. These impacts can make you buy or sell assets, while such decisions should not be based on them. Let’s demonstrate this with an example:
Inflation has effect on all kind of financial decisions. Deciding between buying or renting is not an exception. But how much can inflation impact the final outcome of your decision? Let’s see the numbers!
Contrary to the title, in this part of the series we’re gonna assume that you decided to buy a property, and won’t compare rent with buy, but compare the effect of the various mortgage length. You might consider a shorter term in order to get rid off your mortgage as soon as possible, or you might want to have the longest term in order to have the smallest monthly payments. Let’s check the numbers which might worth the most!
Another month, another step closer to financial independence. In October our investment rate was according to the plan, adding nearly EUR 2,000 to our portfolio via share purchases. We’re in the middle of the Q3 reporting season and the results so far quite mixed with both positive and negative surprises. Overall the S&P 500 closed slightly lower this month, but due to the stronger dollar our portfolio had some small gains in euro. Let’s see the details!