Wednesday, November 02, 2011


Yes our rate of return in USD was 15.01% for October which is a record. But it was largely due to the rebound in the Australian Dollar. In AUD terms we only made 5.61% and in currency neutral terms 8.57%. And after 7 months of losses in AUD terms it doesn't get us back to where we were either. And now Greece seems to have gone crazy and called a referendum on a deal which would have written off a large amount of their debt. I didn't think Greece would end up exiting the Euro. But at this rate it might. I still think the Euro project as a whole won't be reversed. Anyway, here are this month's accounts in USD:

A gain of $87k in net worth. $30k came from foreign currency movement. $40k from core investment returns and $23k from salary, tax refunds, and retirement contributions. Spending was at $5,672. It seems that $5,000 is the new normal for spending. Net worth is at $551k or AUD 519k.

1 comment:

Financial Independence said...

Thank you so much for changing the format, It is much easier to read now!

In the current climate there is no incentive to save the money. I recently did some calculations and the results are very much frustrating, to be brutally honest. Have a look yourself - they are all published.

If you invest $ 40, 000 a year over 35 years, at modest inflation rate of 2% and administration fee of 1-2% you need stock market to perform at 4% just to preserve value of your money and higher to gain anything.

This means that you are only preserving money you are investing at a very high risk. So it is just plain wisdom - is there a point to be frugal and try to save, if you ended up loosing money?

Feeding financial industry or living your life in full now?