My 2016 Financial Overview

2016 financial overviewThat’s all Folks, 2016 is officially over! I am a bit sad as this was really a good year for me on all possible levels. If 2017 will be half this good, I would already consider myself as a happy man. This post will be a bit more detailed as the regular monthly overviews as it is not just month end, but also the end of Q4 (I review my dividend income on a quarterly basis) and the end of the year. Let’s see 2016 in numbers!

New Purchases in December

Similarly to November, I am still using the commission free period of my new broker for some mini purchases. In addition I have bought the planned amount of Prospect Capital shares in order to start my dividend snowball from January onward. The purchases of December were:

  • 5 shares of Unilever
  • 10 shares of Cisco
  • 10 shares of Kinder Morgan
  • 8 shares of Royal Dutch Shell A (a little extra in order to fill my tank from dividends)
  • 150 shares of Prospect Capital

Stock Portfolio

My stock portfolio still consists 30 individual dividend paying stocks (AKA the Dirty Thirty) plus the Vanguard Financials ETF (VFH). From now onward you can find my most up to date portfolio in a separate portfolio page. In addition, as a celebration of the new year I hereby present the portfolio overview in a nice new format! πŸ™‚

This year the stock portfolio has made EUR 5,668.58 unrealized gain, excluding dividends. For me it looks like a nice number, although I am prepared that in a few years this kind of change in the portfolio value can Β happen in a week.

Bond Portfolio

The bond portfolio still contains solely the PowerShares Emerging Markets Sovereign Debt ETF (PCY). In EUR I am having an insignificant unrealized loss on it. Nevertheless I am planning to keep it for a long time and also keep adding extra holdings to it in the future. Based on my ideal portfolio allocation I still need to increase the weight of bonds during 2017.

Real Estate

The only investment real estate we currently have is still the garage, which currently generates EUR 70 per month from a long term renter. One of my most important financial goal for 2017 is to add a rental apartment to our real estate portfolio.

Cash

Here I only record our emergency fund plus the cash sitting on the investment accounts. 2016 is closed with EUR 10,282. Probably the majority of this will be invested in the new rental property, in which case the emergency fund has to be rebuilt.

Dividend Income

2016 dividend income

I really like this chart as it clearly shows that by investing continuously, the passive income that can be generated from dividends keeps on increasing over the time.

I’m trying to select companies into my portfolio that are stable dividend payers and even increasing they payout over the time. In December AES Corporation has announced an over 9% dividend increase.

My 2016 Q4 net dividend income was EUR 281.96, which means I have closed the year with EUR 846.45. My 2017 yearly goal is EUR 1,600, so I’m planning to double the amount of received dividends. This might be a bit challenging as we are planning to purchase an investment property, plus our saving rate will most likely decrease as baby Roadrunner is starting the day care. Nevertheless life would be too boring without great goals, wouldn’t it?

 

The Road to One Million

So where are we exactly on the road to one million?

Early retirement portfolio value 2016 december

The exact value is EUR 68,885. It will take a while even to our first milestone of EUR 100,000, nevertheless eventually we will get there. What is good to see is that looking at this chart I can proudly say that there were no negative months in 2016.

The portfolio value is rising steadily. There are two months with more significant gains: June is due to the extra investments as we have received our bonuses and holiday pay at that time. November is due to the Trump rally both in the stock market and the US dollar.

In 2016 the portfolio value has risen almost EUR 35k. The same amount of gain in 2017 would put us over EUR 100k, which I have initially projected for around mid 2018. Let’s hope the bests!

 

Net Worth

I have finally calculated our net worth. This was long outstanding, even though the more I think about it, the more I find this metric important. I of course don’t want to achieve the EUR 1 million portfolio value while I’m having EUR 1 million debt πŸ™‚

 AssetsLiabilities 
HouseEUR 385,000EUR 325,090Mortgage
Shares & BondsEUR 45,884
Rental GarageEUR 13,000
CarEUR 6,000
CashEUR 10,282
TotalEUR 460,166EUR 325,090Total
NET WORTHEUR 135,076

Our net worth is EUR 135,076. I have calculated with the most important assets, plus (fortunately) the only liability. I am planning to update this calculation once in every half year in order to see that our financial health is on track.

 

Blog Facts

The Road to One Million has been launched on 1st September 2016. During the year Google Analytics has recorded 3,492 pageviews from 788 individual users. So far this is definitely not something to show off with, but it is somewhere to start from.

I think the reason behind these numbers is the fresh blog and the far from perfect SEO.

crappy content

Yes, and the crappy content πŸ™‚

Nevertheless what I am really happy about that half of the visitors seem to be returning ones. For those 394 of you out there: thank you for being here and I hope I can provide some useful and interesting content in the future. It wouldn’t make sense without you guys!

Happy New Year Everyone!

 

 

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