It’s been a long time coming, but finally my net worth is out there for all you readers to see! The more astute ones among you probably have already spotted the portfolio tab on top where I will update my portfolio and net worth every month.
When considering other bloggers’ net worth it isn’t much, but I’m still very proud of my nest egg: I have €42,850.77 to my name! And no debt whatsoever!
While I’ve left out some other small investments – windmills, baby! – and random cash like a rent guarantee to keep things simple, you’ll find a break-down of my stash below.
My actual investments are tied up in ETFs, which I’ve written about before. After last week’s market decline they’re not doing too great anymore, but I’m confident they’ll go up in the end eventually.
|Ticker||ETF||Cost basis||Mkt. value||Gain|
|IWDA||iShares Core MSCI World||4,982.96||4,960.44||-0.45%|
|IEMA||iShares MSCI Emerging Markets||1,214.59||1,261.98||+3.90%|
|IMAE||iShares MSCI Europe||3,561.94||3,429.36||-3.72%|
My other holdings include a tax-advantaged pension fund, a savings account through an insurance firm with a guaranteed yearly return of 3.15% and an emergency fund.
The pension fund is rather small because the tax-advantaged yearly contribution is only €950 at the moment. Of that amount every employed Belgian citizen can deduct 30% from next year’s taxes, which basically is an instant 30% return. The downside is that the state will tax the entire fund at 10% when you turn 60 and that you won’t be able to access the money until you’re 65.
The savings account is a TAK 21 insurance product, which probably only means something to Belgians. Basically, the money can’t be withdrawn without a penaly for a certain period of time. Moreover, the interest rate is fixed. The big difference with other savings accounts is that this account is contract-based and needs the approval of both parties to be dissolved. As a result, I’m still getting a nice return even though new contracts of the same type offer guaranteed interest rates of only 1.5% at most.
Last but not least, there’s my emergency fund. Currently it’s way too big considering the highest unexpected expense I can run into is only about €500. That’s why I plan to reduce it by €10,000 in the next couple of months whenever I find a great dividend growth stock on the cheap.
|Name||Cost basis||Current value||Gain|
|Pension fund||475.00||464.54||-2.20% and 30% tax break|
|Savings account||N/A||17,612.75||+3.15% guaranteed yearly|
One of my goals for 2014 is to have at least €20,000 in the stock market, so I still have some investing to do this year!
I expect to use at least €1,000 of my paycheck every month to buy ETF shares, which means I’ll have about €15,000 invested in them by the end of the year. That’s still €5,000 short of course. Consequently, I’ll use at least €5,000 of the emergency fund to try my hand at dividend growth investing.
I’m currently working on some stock analyses that you can expect soon. Contrary to most other dividend growth investors in the blogosphere I’ll focus more on European companies. Turns out there are quite a few of excellent dividend growers in ol’ Europe!
Exciting times ahead, for sure!
While I sincerely hope that this post was insightful and interesting to you, I must admit it’s still quite scary to publish my net worth online even though it’s anonymous. So you better enjoy all of the above and my future progress! Enjoy it! Did you?
Thanks for reading.