Henk's journey thru life

[RootofGood]

Amazing indeed, it took me 21 years, but luckily 15 years of that by living in every region of the world.
I saw that you also had quite some pension nest egg size, because you had swings of 65k USD (minus) and around 85k USD (positive) in just 2 Months because of market values of your funds in 2014, that means a nice size of funds -)

Yeah, we have a 7 figure portfolio (but just barely). The last 2 months have been a little crazy with the fluctuations, but our core expenses are roughly equal to our dividend yield (on a non-dividend oriented portfolio), so $50-100k monthly fluctuations don't really matter too much (as bizarre as that sounds...).

[Hankaroundtheworld]

Great, 7-figure in 9 years time.....you did something really good or had some sponsoring I still need to figure out this dividend payouts. At least, I will put more and more in balanced low-cost Index funds, but i have not figured out how to get a nice dividend payout.

[RootofGood]

Great, 7-figure in 9 years time.....you did something really good or had some sponsoring I still need to figure out this dividend payouts. At least, I will put more and more in balanced low-cost Index funds, but i have not figured out how to get a nice dividend payout.

That was all our hard work and savings! We've always been pretty frugal and live in a fairly low cost area (North Carolina). The stock market of the last few years helped push us over the top for sure.

[Hankaroundtheworld]

Kind of depressed today, several reasons, some old stupid investment went further down after being suspended for trading more than 7 years (via "free" advice from "financial Experts", yes, I know, how stupid can I be....). Also my company who is trying to rip me off from my bonus because of system issues !!! And actually more shit going on at this company .... Oh my, how I want to say goodbye to this company, but I need to get my bonus first, I will not give up the fight. All in all, I look forward to the ERE break, and the 1st year I only want to relax and get myself back in shape, mentally and physically ...

[Chad]

Kind of depressed today, several reasons, some old stupid investment went further down after being suspended for trading more than 7 years (via "free" advice from "financial Experts", yes, I know, how stupid can I be....). Also my company who is trying to rip me off from my bonus because of system issues !!! And actually more shit going on at this company .... Oh my, how I want to say goodbye to this company, but I need to get my bonus first, I will not give up the fight. All in all, I look forward to the ERE break, and the 1st year I only want to relax and get myself back in shape, mentally and physically ...

Keep fighting for that bonus. My company does the same thing. They stretch out the payment date, reduce it by arguing that there isn't inflation, change it so you get shares in the company instead of money(non-voting shares of course), etc. Make them pay!

[DutchGirl]

Hi Henk,

... Then I guess I'm lucky that I have only invested 1000 euros in a similar investment, and that they suspended it for only seven months instead of seven years, and that I'm currently at "only" -20%, so the current value is 800 euros.

Can you sell this investment now (just to finish all these negative feelings)? Or if it's a very small percentage of your net worth, can you just consider it lost, and if you get more than 0 euros out of it, consider that a profit?

No experience with bonuses here. I guess Chad said enough.

[Hankaroundtheworld]

Hiiii, it was 50k USD, and it is now valued at 30k USD (after 7 years suspension), and it is still not sold, even though they promised. This was a fund by Frontier, NEVER BUY FROM THIS FU*KING COMPANY, and also never buy via "free" advice from financial advisers, but that you already know, me too, but too late !!

[DutchGirl]

OK, if it is any comfort... Did I tell you about the time that my then 35-year-old boyfriend put 30,000 of his euros in stock options? After a nice run-up of the money to 45.000... he lost it all.

Maybe that does make you feel better?

PS. Yes, he has learned his lesson. No more stock options since he doesn't actually know very well how they work.

[Hankaroundtheworld]

Hi Dutchgirl, I learnt that I should not compare and feel better because of somebody's else his misery but I know what you mean, we all learn by mistakes. If I count my mistakes from the last 15 years in investments (especially in real estate, but also funds, etc..), I probably end up around 200k Euro in loss. 100k Euro loss was related to off-plan apartment, which is now rented out, so a chance to recover, but the other 100k Euro was truly lost in bad investments.
Anyway, we need to look ahead, and take the good (but expensive) lessons for future steps. I should be happy that ERE is around the corner at age of 47, in good health, good relationship with my wife, ready to travel (more), sooooo.... life if good (I am programming my brain )

[DutchGirl]

You made some mistakes, but you also made some pretty good choices in your life, leading you to being healthy, happy and financially independent at age 47.

Just this morning I read a blogpost about someone else who put in 22 euros per month into some "get rich quick scheme" for 15 years. Payout is around the corner: she made an average annual profit of 1%. Ouch. The people who got rich were apparently on the other side of the table (the institution took a lost of "costs" out of her investments). Another example of being tricked by a financial "advisor" at an investment company (in this case a Dutch one).

My only "luck" is that I was way too young at that time to make any financial decision. I am wondering what errors I'll make... I hope I'll be able to see through some or most of the sweet talking and wooing...

[Hankaroundtheworld]

Well, these forums help you to prepare for any strategy. Nowadays, if you are facing a potential investment, you can double check online in forums, and get the feedback that could prevent you for mistakes.

For instance: I want to start with index-based funds, and I was thinking of the Dutch company called iBeleggen, basically they decide the different index funds for you, but you pay for that (around 0.3% TER outside the index fund costs itself). I was wondering, do I really need those companies, can I not select a few Index funds myself, take a personal Binck bank account (or other Broker), and then buy these funds. I mean, is it worth to let iBeleggen make these investment decisions for 0.3% Costs?

[henrik]

It seems Vanguard operates in the Netherlands as well, have you checked what they are offering?

[Chad]

Well, these forums help you to prepare for any strategy. Nowadays, if you are facing a potential investment, you can double check online in forums, and get the feedback that could prevent you for mistakes.

For instance: I want to start with index-based funds, and I was thinking of the Dutch company called iBeleggen, basically they decide the different index funds for you, but you pay for that (around 0.3% TER outside the index fund costs itself). I was wondering, do I really need those companies, can I not select a few Index funds myself, take a personal Binck bank account (or other Broker), and then buy these funds. I mean, is it worth to let iBeleggen make these investment decisions for 0.3% Costs?

It's not worth it. Read the 1 page blog post at the link below and see how simple it can be.

http://www.ritholtz.com/blog/2013/02/ke ... ng-simple/

You can use Vanguard, as henrik suggested or some other cheap fund/ETF company. I'm not sure what other companies you would have access to, as my suggestions would all be American.

This may not get you the best return, but it's much better than doing nothing. Plus, it's simple, understandable, and easy to implement.

[DutchGirl]

I believe brandnewday.nl and meesman.nl would be other options for you, Henk.

[Tyler9000]

Also my company who is trying to rip me off from my bonus because of system issues !!! And actually more shit going on at this company .... Oh my, how I want to say goodbye to this company, but I need to get my bonus first, I will not give up the fight. All in all, I look forward to the ERE break, and the 1st year I only want to relax and get myself back in shape, mentally and physically ...

That sucks about the bonus. System issues... that's transparently ridiculous. It sounds like you're very wise to be planning your exit.

I once worked at a place that promised a bonus but never paid out. It turns out (was obvious, actually) that they were on very shaky financial ground and were doing shady things behind the scenes. You know it's bad when the CFO quits. The only way people (including me) collected the bonuses was to leave the company -- I assume they preferred to pay former employees (that have nothing to lose by taking them to court) than take the risk of a lawyer taking a look at the finances. I'm much happier now being away from that type of environment.

[Hankaroundtheworld]

Hi, some updates in my "diary". Still going thru the emotions to say goodbye to Corporate Life, wow, those chains to the Cubicle are very persistent but I am more and more starting to accept the move to ERE. Currently still fighting as well about the bonus, etc... Anyway, wanted to say that this upcoming ERE has made me read books like mad, like "4hours work week" and similar, "investment" books, psychology books, "DIY books", etc.. almost all at the same time (love those eBooks on Ipad). I will get to fiction books again once ERE is on track, but for now, I feel like a sponge, absorbing knowledge.

[DutchGirl]

That's pretty cool . Here's another one, by the way. It's "Your money or your life", but in Dutch and adapted to the Dutch situation; and it's free. http://www.vanspaarbankveranderen.nl/si ... -leven.pdf

[Hankaroundtheworld]

He Dutchgirl, thanks, yes, "money or your life" is also on my list (have started), but this Dutch version is also nice to read. Wish I had read this 10-20 years ago but it is never too late to change for the better. Today I had a good meeting with somebody that has made the move 5 years ago what I am now trying to do. He has not really stopped working, but decided to stop Corporate life and start something himself with a friend, and he said, it has changed his life completely. He feels free, he does not work for anybody than himself, and if he does not like a client, he just say goodbye, and he is also focused on quality of work and life, and not work for the sake of money. He also can afford long breaks (mini-retirements), all and all, something I want, and we will meet again next week, to dig a bit deeper and potentially even work together. Such a meeting gives energy, and it shows I am on the right path. Of course, this path is different for everyone, but more and more, it shows that it brings energy for everyone that has escaped the Cubicle.

[DutchGirl]

For me the "Your money or your life" book really made me realize that I'm exchanging my time for money. And that therefore, that money should be used in a way which honors the fact that I had to use my precious time to get that money. You now have enough money (at least in my opinion), so why exchange your time for even more money, if that's not the most fun/interesting/valuable thing to do with your time?

In the Dutch book there are also sentences like "you can use half a tea bag to get a cup of tea, the tea still tastes great and that'll save you money!" - I don't think that is very useful information for you .

Also, this discussion on reddit is maybe interesting for you: http://www.reddit.com/r/financialindepe ... is_enough/

[Hankaroundtheworld]

Yes, true, I do hear you... for my lifestyle (and my wife), we should indeed have enough, so true, why change more life-energy (time) for money, and start using your time for other goals.... I will think it over a bit more, I am half there. You know, this "being productive" is so well programmed in me, that even though I am rationally agreeing with you, there is this hidden voice telling me, I can do so much more in my professional life.... and talking with my friend today, did give me energy. At least, I am 100% convinced to leave the Cubicle, that move is now prepared.