Passive investment is the most reliable way to grow your wealth if you do it smart. All you need is a plan, self discipline to stick to it and patience to wait for your investment fruit to ripen. In the following article I’m aiming to help those who do have the dedication to invest in their financial future, but hesitate where to start. Some people might find passive investment strategies boring, but if you do not wish to spend much more time on finances than 5 minutes per month, this might be the best option for you.
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!
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 post we have checked whether it worth to reallocate our portfolio during the wealth accumulation phase in case the stock market dips. That example showed that it doesn’t really worth the effort. Seemingly I am not the only one who was thinking about such strategy. Joe from retireby40.org (who is by the way a great example to prove that early retirement is achievable) had similar thoughts and asked how this strategy would work in the years of early retirement. Let’s see what the numbers show!
This is the first month end since this little blog has been launched. From now onward I will give an update on where we are on the road to one million. I will let you know what investments were added to the portfolio, share the dividend income on a quarterly basis, and hopefully can demonstrate how every little step you make takes you closer to financial independence. Let’s see where we are now!
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.
￼Ever since I have decided to retire early I was always wondering what should be the perfect allocation of my portfolio. I want to accumulate wealth as fast as possible, but at the same time I don’t want to take any reckless risk that would wipe off the work of the years. The fastest way to get one million euro is to save 500k and put it all on red at the roulette table. But in case I lose it all on black, I would be extremely…. sad. I need a better plan!
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.