Net Worth Update: $333,417 – July 2020

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Net worth: $333,417!

This is my 17th net worth update. In june I had a 88,0% savings rate!

By Route 2 FI

Index Funds

In the figure below you can see my index fund value as of 1. July 2020. 

  • The blue line is the market value of my index funds: $326,862
  • The orange line is the investment value of my index funds: $282,078

Because my brokerage account is in NOK and not in US Dollars, the numbers fluctuate a lot every month because of currency changes.

As you can see on the screenshot below, my portfolio was up + 5% in june 2020 (aprox. $13,000).

Below you can also see the funds that I’m invested in. 

In total my portfolio is exposed aprox. 70 % to MSCI World and 30 % to MSCI Emerging Markets.

 

Since the beginning of my index investing journey (january 2018), my portfolio is up almost 30%.

👇

If I were to quit investing today (which I obviously wont), I would have earned $50,903 (424,448 NOK).

👇

Income, Expenses And How Much I Can Withdraw According To The 4%-rule

  • The figure above shows the connection between my income (orange), expenses (blue) and monthly FI money according to the 4% rule
  • As a result I will become financial independent when the blue and red line crosses each other.
  • If I quit my job today and never took a paid job again - my monthly FI money would pay out $1,090 every month for the rest of my life

It’s motivating to see that I can safely withdraw $1,090 every month for the rest of my life.

I will do everything I can to raise this dollar amount in the future. 

As you all know my goal is to save $500.000 USD.

This means my monthly FI money goal is $1,667 USD each month. I’m over 2/3 to my goal and it feels great!

Recently I wrote a detailed post on how I will reach a $500.000 net worth in only 2 years.

Portfolio results for June 2020

My portfolio is up +30,1 % since March 2020.

  • Averarage expenses so far in 2020: $1,333
  • In 2019 my average expenses was: $1,485
  • Average income so far in 2020: $6,523
  • In 2019 my average income was: $5,544
  • Monthly FI money as of July 2020: $1,090

Mortgage

We own an apartment 50/50 that has a total value of $540,000. That means my share is $270,000.

While this sounds good, my share of the mortgage is $218,565

The interest rate on the mortgage is 1,40 %.

Pension

My current pension is $58,873.

I recently found out that I had a pension plan in a job I had as a teenager as well. Pension is a really iliquid asset class, because I can't withdraw the amount before I'm 62 years old.

Student loan

After nine years with different studies I got $51,001 in student loans.

In Norway the university has no fees, so this is a loan covering basic living expenses while you're at the studies.

The interest rate is 2.16 %.
I'm not paying anything on this loan at the moment.

Stock Investing Loan

I was recently approved as a Private Banking customer at my broker Nordnet.

As a Private Banking customer you're allowed to loan $55,000 (500,000 NOK) to 2,95 interest rate.

The interest rate is 2.95 %.
I'm not paying anything on this loan at the moment.

Total Net Worth

  • Index Funds: $326,862
  • Mortgage: $51,435
  • Pension: $58,873
  • Student Loan: $-51,001
  • Stock Investing Loan: $-52,752
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Net Worth (USD $)

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2 Replies to “Net Worth Update: $333,417 – July 2020”

  1. Thanks for sharing and good job on the way to FI! I have a question for you though. As you may have heard, Nordnet is changing their price model from September 1st which will increase significantly to prices of Index fonds compared to other brokorages. Have you thought about your strategy? Are you moving the another brokerage or maybe adding some actively manage fonds which will become slightly cheaper? If you don’t make any changes, as per now, you would pay around 5000 NOK more per year compared to what you would pay at another brokerage offering the same index fonds. I am curious to hear what your plan will be. I personally think to stick with Nordnet, even though the higher price, but will do some changes in the share of the actively managed funds and even though I will be paying more than what I am paying now, these fonds will be better value for the money and I will avoid all the hassle to move the fonds from one brokerage to another. And who knows, maybe other brokerages will also change their prices, so who knows if it will pay off to move to another company.
    Cheers!

    1. route2fi says: Reply

      Thanks. I just sent you an e-mail. Did you get it?

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