amigos! This is just a quick post to introduce my net worth page and some changes on my investment portfolio. At first, I thought I would do it together with my next portfolio update, but I wasn’t sure whether I would have enough time to cover it all in a single post, so here we go.
During these last days I’ve had massive loses on my algotrading account, when I say massive, I really mean it, it’s almost all wiped out! This is not a saving ninja thought experiment, this is real! So, I have been questioning myself for a few days whether this blog does actually make any sense at all or not anymore.
Table of Contents
Yes it does! And now more than ever!
I love the FI community, it helps me to keep pushing towards the similar type of goals we’re all after and I’m learning and improving much quicker than I expected, why should I stop that now just because of a failure? I have only two choices here, love or fear. I am choosing love!
Yep, it’s true! I’ve learned it the hard way, to be precise a 45.000€ investment turned into trash, not the best way to get that million, right? This is a quite expensive life lesson, isn’t it? But again, I’ve got only two choices: love or fear. To me fear right now means giving up, while love means acceptation, recovery, learning and move bl*dy on!
Sorry if that post is turning out to be a bit exclamatory.
So, is my investment with Algotechs completely lost? Not completely but it’s nearly there. The thing is that I’m emotionally exhausted, checking the trades every hour and worrying about whether it will recover or fully vanish. It affects my work efficiency, my emotional behaviour and leads me in the wrong way. I need to stop it and the only way is forgetting about it and accepting it as a loss. If in the future it turns out that it recovers a bit and allows me to withdraw money, I will consider it as an income. I have taken several screenshoots during the fall, which will be posted on my next portfolio update, so you guys can see what I am actually talking about and the “great” efficiency of the Algotechs ATS software.
So, as a recovery, I decided to do the numbers to find out my true net worth. That doesn’t change my initial goal described at the beginning of my blogging journey, which is “increase my investment portfolio value to one million euros”. It will be much harder now, but easier than before…
Hola Net Worth, a new positive beginning!
My net worth is slighly over 400,000€, that’s excluding algotraded funds. How is that? Didn’t I say I was poor? Yep, I was and because I was (or better said, my parents were) now I am not. The reason? The Industrial Warehouse. Many years ago, my father bought a business that was at the edge of bankruptcy, don’t ask me why, he never told me. Soon after, the business failed and all the machinery or valuable assets were taken by the banks, hence why I love them so much! That was the starting point of a compounding miserable life that would last many years. Both, my mum and dad worked 12h/6 days a week working literally for the banks. But furthermore, that wouldn’t be the true price they would end up paying, they paid with their health. My mum became mentally ill and my dad died of cancer at the age of 48, how expensive is that? I was 20 at that time and have no siblings.
My father had a life insurance that covered the remaining liabilities, I inherited all his properties and some cash was paid to me. All the sudden I was “rich”, but lost something much more valuable, my father. I used this cash to finance my university degree, which I really struggled to pass, as I had never expected to have money for it and wasn’t properly prepared. The rest of the story continues on my about page.
I could continue explaining more facts about my life, but at the end this is supposed to be an “investing the wrong way FI?” blog, so let’s get to the charting/tabling side.
Net Worth Balance Sheet
Real Estate makes up 71% (284K €) of my total assets and I have no plans to own more. The Industrial Warehouse is rented by a printing house company an adds a little over 1000€/month of gross passive income. My mum enjoys most of it, so I don’t count it as a passive income but as an occasional income.
My new investment portfolio makes up 18% (71K €) of my total assets, which 9.7% are invested in alternative investments like P2P/B lending and Real Estate Crowdfunding. Considering the risks, this is the limit I am happy to invest via crowdfunding platforms for now. That means I won’t reach my passive income goal of 700€ by the end of 2019. I think that was a silly goal after all, as it just led me to investing compulsively, without taking into consideration the real risks. However, I will keep diversifiying among platforms and even include new ones.
Stocks make up 4% (16K €) of my total assets. I own two stocks that I haven’t mentioned earlier, basically, it’s because I didn’t want to complicate things more at the beginning. I traded a bit stocks last year using the Trading 212 brokerage platform and earned 217€. The positions are small but it’s still worthwhile as equity trades on this platform are “free” of comission. I keep AMAT and FSLR, which both belong to the semi-conductor industry that was hammered in 2018 and hasn’t recovered yet.
Corporate bonds make up 3% (12K €) of my total assets.
Treasury Bills, my safest investment, makes up 1% (3K €) of my total assets.
Cash makes up 9.4% (37K €) of my total assets.
Others (car) make 1.6% (6K €)
Until next time, time to go play the right way 😉
This is it! Don’t forget to check out my new net worth page, where you’ll find a couple of doughnut charts and highlights. Any thought are welcome.
I would like to end expressing my gratitude towards others, in this case to some bloggers that inspired me and helped me to get my net worth done using some of their online content:
- Total Balance
- Route2FI
- Money Mow
- Quietly saving
- Finance your Fire
Last thought: I will continue to do what life has taught me to do, turning adversity to advantage!