Updates from November, 2014 Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 23:06 on 2014-11-29 Permalink | Reply  

    November 2014 – networth and expenses 

    Things are getting better after last month’s disaster.

    • brokerage account 103.0k
    • mutual funds 63.0k
    • “bonds” 20k
    • cash 3.5k
    • gold coins 9.0k
    • total 198.5k

    This is an increase of 9.9k (+5.2%) over last month. I was hoping to jump back over the 200k level (which I did during the month). After all it is almost +10% over last year’s figure (180.3k). And 20k seems to be our usual yearly contribution. So things are looking still okay.

    Cash holdings are down significantly and I moved it into an alternative investment (which pays bond like interest). If there is the need for cash I will sell some mutual funds. I have approximately 50k in a conservative funds.

    Monthly expenses

    • January -2.7k
    • February -3.1k
    • March -3.0k
    • April -3.2k
    • May -3.8k
    • June -2.4k
    • July -2.6k
    • August -2.8k
    • September -2.4k
    • October -2.4k
    • November -2.9k

    I did not met my goal of less than 2.5k for the month of November (see below for the explanation). But as stated in October’s report I got the refund (on the last bank day of the month), so I reduced September and October in retrospect. Together with June this marks 3 months as success!

    Notable subcategories

    • housing 1010 (including one time fees of 412)
    • groceries 245
    • children 131
    • travel 293 (5 nights Airbnb)
    • going out 109
    • pension 307

    So, if I remove the short trip and the one time fees for housing I’m well below 2.5k. I could even reach sub 2.0k (which is my true goal). I know I can get there by cancelling the pension contracts (which I will investigate next year) and some useless insurance policies (that my wife still clings to).

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  • eurfi 14:56 on 2014-11-02 Permalink | Reply  

    October 2014 – networth and expenses – a disaster 

    October was a very bad month for me (on the brokerage front). The non-investment stuff was very pleasant. I will tell the numbers first and then supply a few details. (See my initial networth post for some general explanations.)

    • brokerage account 96.5k
    • mutual funds 61.8k
    • cash 21.3k
    • gold coins 9.0k
    • total 188.6k

    This is a decline of 28.3k (-15%), which negates all my investment gains since the beginning of the year. But due to our savings it is still a small gain of 8.3k (+4.6%) over last year. I will share my feelings about this drop at the end of the post, let’s continue with our monthly expenses.

    Monthly expenses

    • January -2.7k
    • February -3.1k
    • March -3.0k
    • April -3.2k
    • May -3.8k
    • June -2.4k
    • July -2.6k
    • August -2.8k
    • September -2.6k
    • October -2.6k

    The numbers look similar, but actually September was over 2.6k and October below 2.6k. I was aiming for staying below 2.5k, but I missed it by 60 Euros. But I’m expecting a refund of 200 Euros which should bring October (and also September) below the 2.5k mark.

    Notable sub categories

    • housing 545 (including one time fees of 184)
    • groceries 256
    • children 335
    • transportation 139
    • pension 307
    • insurance 246

    On the expenses side it was a quiet month. I expect November to be similar and to stay below 2.5k for the second time of the year (our first month was June).

    Networth drop

    Now some details to our big networth drop. I do all our finances, and my wife knows about the drop. The first hit was at the beginning of the month, when GT Advanced Technologies (GTAT) filed bankruptcy. Seems this was a surprise to a lot of market participants, at least it was one to me. I was way too much invested in an options position with unfavorable risk/reward profile (short puts). Then my normal investment strategy (sorry, I do not disclose any details) took a hit as well. And to round things off, American Realty Capital Properties (ARCP) fired its CFO after accounting errors. The stock was down 30%.

    There are some lessons for me to learn here. I have not fully digested the news. I’m really questioning the use of short puts for speculative stocks (such as GTAT). I will continue to use the for my dividend stocks (which ARCP is one of them).

    The financial loss is bearable, because I had a good year so far. My brokerage account was roughly at 100k at the beginning of the year. I’m sure I would feel much worse if I was down 20k or so over the year. But still, I feel the difference everyday. I have less patience with my kids. I’m upset much faster. I do not want it, and I try to hide it, but I can’t.

    PS: On the bread maker side, things are running really well. No bread purchases this month – all self made.

     
    • DivHut 22:17 on 2014-11-06 Permalink | Reply

      Thanks for sharing your recent net worth update with us. No need to worry about a month to month change. If you are investing for the long haul these small dips won’t even be noticeable.

      Like

    • No More Waffles 13:32 on 2014-11-16 Permalink | Reply

      Thanks for sharing!

      Don’t worry about the strong decline. I’m sure ARCP will bounce back up and the dividends will help you come ahead in the end.

      Cheers,
      NMW

      Like

    • econowiser 18:25 on 2014-11-21 Permalink | Reply

      Wow, why would you let the stock market influence your personal life? Buy index funds and relax!

      Like

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