Hello fellow investors,
Welcome to this page where I’m going to share my current financial situation, financial goals, investment policy statement and the most updated value of my portfolio. Moreover, here you can find all the monthly updates since I started this blog (that means from December 2019)
My Financial Situation
As I already mentioned in “About Me” section, I’m currently living in Bratislava, Slovakia. The average salary in Bratislava is around EUR 1,200 net per month and the city is considered relatively cheap even compared to other capitals of Central Europe. I’m working in financial services as an external auditor for about six years now. I started during my university studies by sacrificing my student life to working late nights, which sucked, but fortunately, I was able to secure a job, where 2 years after my graduation I’m earning about EUR 2,200 per month. That is a relatively comfortable number for Bratislava.
Me and my girlfriend had to put down payment for an apartment at the beginning of 2019. I had to liquidate my whole portfolio to do it, but I’ll finally be able to live in my own place. I still have to put some money on top of a mortgage when the apartment will be handed over to us and I need to save a few thousands for furnishing but I decided to save and keep that cash in separate short-term savings account (outside of my investment portfolio) as I’m not sure when exactly I’ll need that money and I don’t wanna risk any cent out of that amount. My other expenses except of apartment savings are rent, car related expenses, traveling and various other items. In the end, I’m able to invest around half of my income. Now that I have a car and an apartment, no other major events are planned for my portfolio in the upcoming period (not a big fan of huge and expensive weddings).
Investment Policy Statement
The goal of my own portfolio is to increase my overall level of wealth up to EUR 500,000 which is the threshold where I can basically live only off my savings. I don’t plan to retire as soon as possible as many others claim, I plan only not to be dependent on the regular job and maybe just take a part-time position as a hobby instead. I want to achieve this by investing in a combination of the stock market, crowdfunding, fixed income securities and other alternative investments with a long-term goal of 6% p.a.
Overview Of My Investment Instruments
Mutual Funds – Funds actively managed by the one local and one French asset management company bought during a marketing campaign where no entry or exit fees were charged to investors and therefore my actual costs are management fees only (1-2% yearly). Funds from the local company are bought under the contract which is stating that I have to make regular investment each month of minimum of EUR 30 for 5 years. I decided to keep that to a minimum from June 2019 to pursue better opportunities instead.
Index Funds – Fund passively managed by private retirement asset management company. My investments consist of regular monthly deposits charged directly from my salary. My cost is management fees of around 1% p.a. and small deposit fee as the deposits are transferred through the state-owned social security company.
Crowdlending – Investing through platforms dealing with crowdfunding financing of loans and construction projects. My investments are based on thorough reviews available on this blog also. My monthly deposits fluctuate over time as I use to transfer available cash a lot even between available platforms.
Stock Picks – Shares of individual companies purchased through Revolut Trading. Currently I own shares in only 3 companies but I have another 20 in close watchlist where I’m keeping the list of shares I’m interested in, but looking for a better price entry.
Savings Account – Account provided by new local digital bank with attractive 3% after tax return. I’m just participating until the end of this marketing campaign to get 3% risk-free return. After that, I don’t have interest in other savings accounts until the end of current low-interest ECB policy.
Cryptocurrencies – I invest only in 1 crypto and that is Stellar. I don’t plan to increase my stake of EUR 200 here due to volatility and inherest risk of cryptocurrencies. This is just my contribution as I’m a big fan on the project (check it out if you’re interested)
Real Estate Crowdfunding – This represents a small investment through new Estonian start-up BitOfProperty which enables retail investors to buy a small share of an apartment in Talinn, Estonia through blockchain based tokenization. Additionaly, I invested around EUR 300 to platform Reinvest24 where I can buy shares of residential or commercial real estate to earn rental and capital gains after the subsequent sale of the property. Reviews of the platforms are incoming.
P2P – Money invested in platform FinBee which is a real P2P investment platform where you lend directly to people rather than loan originators as through e.g. Mintos. The platform is supervised by the Lithuanian Central Bank and is offering returns in line with the credit score of the potential borrowers up to 27% p.a.
Cash – This is basically money sitting on separate account waiting for a good opportunity to be invested. The money here is fluctuating as the new interesting projects are emerging.
Value Of Portfolio
My portfolio as of 29.2.2020 is valued at EUR 11,830 which is an increase compared to the prior month of EUR 915. This increase comprised of new investments of EUR 1,269 and achieved loss of EUR 354. My total investments totaled to EUR 11,360 and the total profit of my portfolio since the inception is EUR 470. Refer to the most updated portfolio valuation report HERE.
Monthly Portfolio Development
Refer below to the list of monthly reports: