Story so far…

Currently I am sitting on a approximately 40% Cash and 60% equity balance. This is because currently I only have a partt-ime job with irregular hours so I feel the need for a greater safety net incase of release from employment, sickness or other extreme events. This sum should be able to sustain me for an approximated year and a half with no additional income.

Being a months since I started this blog I realized I think it would be nice for me to keep a journal of how my portfolio changes, the resource allocations and the asset allocations within these resources. I’ll start by making a list here in this post but I’m contemplating filing these away under a new tab. Potentially called one of the following “Portfolio Allocations / Portfolio History / Asses Allocations.”

Currently (2017-03-02):

CASH: (% is given of the total portfolio)

Low Interest rate account (0.7%) :  36.6%

Non Interest rate account (0.0%) :  5.6%

ASSETS:

Stocks :  42.7%

Bonds:   15.1%

PROPERTY :

xxxx:xx %

LOAN:
Total Debt in % of net worth  78.8%

2016-06-26:  (Approximately start of my investment phase)

CASH: (% is given of the total portfolio)

Low interest rate account (0.7%)  : 92.2%

Non-interest account (0.00%)     : 0.94%

ASSETS :

Stocks :  4.1%

Bonds :  2.8%

PROPERTY:

xxxxx: xx %

LOANS:

Total debt in % of net worth : 89.4%

I wish you all the best until next time,

// A.W

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Starting out

and how to get to where a am now, part one.

It began with a mental decision, “I don’t want to live in eternal debt for the rest of my life.” This idea came from watching most of my friends frivouslly spend their student loans on alcohol, trips, clothes, eating out and other non-essentiall trivialities. At the end of the month before the next payment was in they where always going on about how broke and poor they where, but once again when the next loan arrived out and away it too went. I was in the same situation with these groups of friends and was spending my money the same way. One day after much contemplating I took a stand. I was going to start savnig up enough money so I could be free for a couple of months and not need to strees for the next loan to arrive.

I started using my normal bank’s savings account. It had an interest of 0.7% when I first started using it. This quickly dropped down to 0% within just a few months. Eventually i started looking for another bank account with a greater interest rate. i found one with 2.5% that was governmentally insured incase the bank lost all its money I would recieve a compensation for up to a certain amount (way above what I was investing). There it sat for several years untill due 1.5 years ago when I got a notification saying that the interest for this bank account was also at 0.5% lower then my initial bank account.

I took a look at the amount of money i had saved up, and compared it to the interest rate on my school loan and realized my percentage rate of return was lower than the interest on my loan! Here is where I took the next step to learning more about private economy, investing ideas, and passive incomes. I will continue to discuss these in future posts.

best regards,

//A.W

IPO gambling

For the past year there have been a series of initial public offerings (IPOS) in my local market and several friends of mine have jumped on the bandwagon in buying a fair deal of them and then selling them of at the initial time of release.
Currently they have made a great income on these transactions (about 15% plus after taxes) which is by my own investing means a great rate of return, but also these investments are liquidfied within a certain time period. Allowing for further greater investments into IPO’s like the interest on intrest effect that is the dirving force behind financial freedom.

I deem that these actions are considered gambles as you never know if you’ll strike gold or not, but if one plans it out: say I’ll use $100,000 in 100 IPOs for a 1000 dollars in each IPO. This would reduce the risk of an all out failure and still have a potential for great yields.

I’ll hopefully return to this subject after I’ve stabalized my current asset allocations to my desired positions. That is 20% cash, 30% estate, and 50% stock and bonds.

Best wishes,

//A.W

A goal without a plan…

Is nothing more than a wish. –

My goal as previously stated is to be financially sound at the time of my retirement.
My plan to get there is rather simple to begin with. Its rough draft is as follows:

Acquire passive income in the form of interest rates, dividends, and rent.

There I aim for about 10-20% of all my capital to be invested as cash for interest rates, hopefully this will submit about 7% of all income, this is assuming a 2% ROE (return on equity). This cash will be kept for emergencies and potential drops so it will be easier to capture market drops when re-balancing my portfolio. I hope for about 20-30% to be invested in real estate, these can have mortgages which will not be included in my cash count but the interest rates will count against the income acquired from such properties. This will hopefully contribute about 28% of all my income, this is assuming a 5% ROE. And the rest will but put in the open market in funds and ETFs and will yield about 65% of income, this is assuming a7% ROE, which is in my opinion quiet high.

As you can see 7%+28%+65% = 100% so all my passive income will come from these three aspects.
This is just my plan from the beginning. It is bound to be open to changes and re-evaluations. More numbers shall be arriving shortly.

//A.W

From Student Loans to Bullions

I am starting this blog to document my “road to riches” with the hopes of following the struggle an individual takes reaching for financial independency and security with the goal of being able to live of my passive income as it steadily continues to grows.

Through this blog I hope to inspire any and all to reach for their own financial independence and that it doesn’t mean you have to give up any quality of life. I hope that my own experiences will give anyone with the will and determination the tools to take control of their own fiscal situation in this world of uncertainty. Though it may be some time between updates at this blog I’ll try my absolute best to stay true to my followers and my own strategies for a more secure future.

Best regards,

//A.W