Wizards' journal (ERE in Denmark)
Re: Wizards' journal (ERE in Denmark)
Well done! I wish I'd know more people like you guys. So about how many hours per week do you work at the moment?
Re: Wizards' journal (ERE in Denmark)
Thx. 
I guess about 15 hours a week.
I guess about 15 hours a week.
Re: Wizards' journal (ERE in Denmark)
How is everything, Wizards? Kindly requesting an update since this journal is very inspiring. 
Re: Wizards' journal (ERE in Denmark)
An update – sure no problem 
Numbers from last month:
SWR (budget): 2.42 % (or 4.83 % including my wife’s part of our expenses)
Net worth: USD 956,238 (new all-time high)
TTM expenses are at 93% of budget, despite August was an expensive month; car needed major repair, we were on holiday and prepaid skiing holiday for next year (TTM was at 86 % end July).
Asset allocation: Rentals 39 %, Stocks 50 %, Bonds 9 %, Cash 2%
Wife at home
We have finally come to a period where we have a relatively normal everyday life – first four months have been holidays on/off. We now have two months with no major plans before catching a plane to Thailand in November.
But it’s nice having her at home, she now has more time for the kids and have finished some home improvement projects I didn’t have the time to do, so clearly a win
Finances
Bought one more apartment last month (50/50 with a friend) and we are in the process of fixing/painting etc. and finding tenants, should work out fine but there are some hours spend on this now.
Bonds are now ridiculous valued, effective interest rate are getting close to zero, but need to find an alternative, as this holding is in my entrepreneur savings account. So, looking for property to flip – or other options. No bonds seem interesting.
Stocks are generally doing fine, how ever richly priced, but I’m happy with my current holdings. Might take some chips of the table if we see further market gains.
Cash are low, primarily due to buying more property, but interest on cash is not much, so guess it’s ok.
Questions – let me know
Numbers from last month:
SWR (budget): 2.42 % (or 4.83 % including my wife’s part of our expenses)
Net worth: USD 956,238 (new all-time high)
TTM expenses are at 93% of budget, despite August was an expensive month; car needed major repair, we were on holiday and prepaid skiing holiday for next year (TTM was at 86 % end July).
Asset allocation: Rentals 39 %, Stocks 50 %, Bonds 9 %, Cash 2%
Wife at home
We have finally come to a period where we have a relatively normal everyday life – first four months have been holidays on/off. We now have two months with no major plans before catching a plane to Thailand in November.
But it’s nice having her at home, she now has more time for the kids and have finished some home improvement projects I didn’t have the time to do, so clearly a win
Finances
Bought one more apartment last month (50/50 with a friend) and we are in the process of fixing/painting etc. and finding tenants, should work out fine but there are some hours spend on this now.
Bonds are now ridiculous valued, effective interest rate are getting close to zero, but need to find an alternative, as this holding is in my entrepreneur savings account. So, looking for property to flip – or other options. No bonds seem interesting.
Stocks are generally doing fine, how ever richly priced, but I’m happy with my current holdings. Might take some chips of the table if we see further market gains.
Cash are low, primarily due to buying more property, but interest on cash is not much, so guess it’s ok.
Questions – let me know
Re: Wizards' journal (ERE in Denmark)
2019 update
SWR (budget): 2.34%. For 2020 our budget will increase and the new SWR (budget) will be 2.43%
Net worth: USD 999,374 (getting really close to 7-figures)
Asset allocation: Stocks 50%, Rentals 37%, Bonds 9% and Cash 4%
Sold some stocks in the last months of 2019 (to reduce risk and up my cash position), will properly sell some more this month.
One new apartment bought in 2019 (50/50 with a friend) so the portfolio holds a total of 9 rental apartments.
Spending in 2019 was 91% of budget, lower than last year. But as we have a specific amount dedicated to holidays/travels and this category is up, we have agreed to increase our budget. Repayment of loans is still a significant portion of our spending, 23% of 2019 spending to be more precise. Home equity is not included in net worth as we intend to stay in this house for years to come.
Current passive income covers 143% of budgeted 2020 spending.
Hobby income finally took a hit down almost 60% from 2018 – did still cover all my private/personal spending, so still better than a poke in the eye…
Children – as last year – they continue to be cheaper than budgeted, and they are doing fine.
Wife – has been at home since she quit her job in May. Now I pay her spending as well, so you could argue that my SWR for next year isn’t 2.43% but 4.86% instead. How ever this is paid for by my part time job, so not too much worried about this “little” issue.
“Family account” / holidays – Up until my wife quit, I allocated 80% of my after-tax earnings from my part time job to this “account” (not actually a real account, just some excel magic). From this account we paid our 1-month vacation to Thailand and I gifted our children some money as well. No big plans for next year as much will depend on my wife to choose if she would like to continue to stay at home.
Job – still doing part time…
SWR (budget): 2.34%. For 2020 our budget will increase and the new SWR (budget) will be 2.43%
Net worth: USD 999,374 (getting really close to 7-figures)
Asset allocation: Stocks 50%, Rentals 37%, Bonds 9% and Cash 4%
Sold some stocks in the last months of 2019 (to reduce risk and up my cash position), will properly sell some more this month.
One new apartment bought in 2019 (50/50 with a friend) so the portfolio holds a total of 9 rental apartments.
Spending in 2019 was 91% of budget, lower than last year. But as we have a specific amount dedicated to holidays/travels and this category is up, we have agreed to increase our budget. Repayment of loans is still a significant portion of our spending, 23% of 2019 spending to be more precise. Home equity is not included in net worth as we intend to stay in this house for years to come.
Current passive income covers 143% of budgeted 2020 spending.
Hobby income finally took a hit down almost 60% from 2018 – did still cover all my private/personal spending, so still better than a poke in the eye…
Children – as last year – they continue to be cheaper than budgeted, and they are doing fine.
Wife – has been at home since she quit her job in May. Now I pay her spending as well, so you could argue that my SWR for next year isn’t 2.43% but 4.86% instead. How ever this is paid for by my part time job, so not too much worried about this “little” issue.
“Family account” / holidays – Up until my wife quit, I allocated 80% of my after-tax earnings from my part time job to this “account” (not actually a real account, just some excel magic). From this account we paid our 1-month vacation to Thailand and I gifted our children some money as well. No big plans for next year as much will depend on my wife to choose if she would like to continue to stay at home.
Job – still doing part time…
Last edited by wizards on Mon Jan 06, 2020 10:07 am, edited 1 time in total.
Re: Wizards' journal (ERE in Denmark)
Thanks for the update, wizards. Looks like excellent progress!
Re: Wizards' journal (ERE in Denmark)
You are totally smashing it (as if that wasn't obvious). Congrats!
Re: Wizards' journal (ERE in Denmark)
2020 update
SWR (budget): 2.27%. 2021 budget unchanged.
Net worth: USD 1,180,681, up 7,1% compared to last year in my local currency (DKK), more in USD as the dollar has weakened.
Asset allocation: Stocks 45%, Rentals 41%, Bonds 8% and Cash 6%
I have been a net seller of stocks this year.
One new apartment bought in 2020 (50/50 with a friend) so the portfolio holds a total of 10 rental apartments.
Still haven’t decided what to do for 2021 – might use cash to repay one of the property loans, even though this isn’t the mathematical correct solution, but wouldn´t mind bringing down my risk.
Spending in 2020 was 79% of budget, lower than last year. Didn’t do much travel due to that covid-thing...Repayment of loans is still a significant portion of our spending, 26% of 2020 spending to be more precise. Home equity is not included in net worth as we intend to stay in this house for years to come.
Current passive income covers 144% of budgeted 2021 spending, did see some dividend cuts and freezes.
Hobby income bounced back up 119% from 2019 – so covers all my private/personal spending, and some.
Children – as last year – they continue to be cheaper than budgeted, and they are doing fine.
Wife – Late summer she was offered a part time job on terms she requested, so since September she has been working again, so these days we have plenty of income...
“Family account” – I’m still allocating 80% of my after-tax earnings from my part time job to this “account”. This account paid my wife being at home the first 8 month of 2020, and I gifted some money to our children. No big plans for next year, guess we will not be traveling much, and wife seems happy with her current jo situation (3 normal days, 1 day from home, and one day off)
Job – still doing part time…
SWR (budget): 2.27%. 2021 budget unchanged.
Net worth: USD 1,180,681, up 7,1% compared to last year in my local currency (DKK), more in USD as the dollar has weakened.
Asset allocation: Stocks 45%, Rentals 41%, Bonds 8% and Cash 6%
I have been a net seller of stocks this year.
One new apartment bought in 2020 (50/50 with a friend) so the portfolio holds a total of 10 rental apartments.
Still haven’t decided what to do for 2021 – might use cash to repay one of the property loans, even though this isn’t the mathematical correct solution, but wouldn´t mind bringing down my risk.
Spending in 2020 was 79% of budget, lower than last year. Didn’t do much travel due to that covid-thing...Repayment of loans is still a significant portion of our spending, 26% of 2020 spending to be more precise. Home equity is not included in net worth as we intend to stay in this house for years to come.
Current passive income covers 144% of budgeted 2021 spending, did see some dividend cuts and freezes.
Hobby income bounced back up 119% from 2019 – so covers all my private/personal spending, and some.
Children – as last year – they continue to be cheaper than budgeted, and they are doing fine.
Wife – Late summer she was offered a part time job on terms she requested, so since September she has been working again, so these days we have plenty of income...
“Family account” – I’m still allocating 80% of my after-tax earnings from my part time job to this “account”. This account paid my wife being at home the first 8 month of 2020, and I gifted some money to our children. No big plans for next year, guess we will not be traveling much, and wife seems happy with her current jo situation (3 normal days, 1 day from home, and one day off)
Job – still doing part time…
Re: Wizards' journal (ERE in Denmark)
Besides the sexual connotations in this song, it seems to be apt background music for your life right now: https://www.youtube.com/watch?v=jh0rMJOFSy4
Glad you're doing well W.
Glad you're doing well W.
Re: Wizards' journal (ERE in Denmark)
Congratulations becoming a millionaire!
Glad to know you are all doing fine.
How do you assess the value of your rentals when calculating your assests?
Glad to know you are all doing fine.
How do you assess the value of your rentals when calculating your assests?