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!
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!
In the previous two posts I have checked the performance of 3 different portfolios from 2003/2004 up until today. I wanted to know how did the 2008/2009 financial market crash has impacted the early retirement plan of our imaginative friends. These examples already allow us to make some conclusions, nevertheless I am still searching for the perfect portfolio. Let’s see what part 3 will show us!
In the previous post we checked the performance of 3 types of portfolios and found big differences between them. Now let’s see how timing affects these portfolios. Why is it important? Because we can’t really influence it. Market crashes can happen at any time. It may be tomorrow, but stock prices can also continue growing for many years in a row. I want to find the perfect allocation that makes my portfolio as bullet proof as possible, without sacrificing too much potential returns. Furthermore what I would definitely like to avoid, is to jeopardize the sufficient income during the years of early retirement.
Now we have some idea about investing in the stock market. What about bonds, the other typical type of investment? What are the different types of bonds? How do they work? How can we make money with them and also: how can we lose money? In the followings I will explain some basics about the magical world of bonds.
One great way to invest in many different stocks at the same time is via an ETF. If you buy a Vanguard S&P500 ETF (VOO), your returns will be almost the same as you bought the shares of all the S&P500 companies according to their index weight. All this with one purchase, one time transaction costs and as low as a yearly 0.05% fee. As a bonus, it currently has a 2% dividend yield. Nevertheless if you are looking for ETFs that solely hold dividend paying shares, here are 4 great ones to consider including in your early retirement portfolio:
As a matter of introduction I’m a regular middle class guy in his early 30s aiming to reach financial independence. I have a beautiful wife, the cutest baby girl, a job with a middle management role at a multinational, a used car with no mortgage and a house with a lot of mortgage. Probably like most of you guys out there… I live in the Netherlands (you might or might not notice this from later posts) and I’m a non native English speaker (you will definitely notice this). I have the same kind of dreams like most of you might have: provide security to my family, live a happy life, travel to many different places, see the world, meet interesting people. And one more thing: I want to be a millionaire!