Wizards' journal (ERE in Denmark)

Where are you and where are you going?
thrifty++
Posts: 782
Joined: Sat May 23, 2015 3:46 pm

Re: Wizards' journal (ERE in Denmark)

Post by thrifty++ » Fri Jun 05, 2015 2:48 pm

Hey wizard. Impressive NW you have acquired. Can I ask one question, might seem like a silly question as I have seen this term all over the ERE website but down know what it means. What does SWR mean?

wizards
Posts: 108
Joined: Sun Mar 31, 2013 8:24 pm
Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Fri Jun 05, 2015 3:47 pm

Hey thrifty,

Thank you.

There is actually a really good wiki on the ERE site:

http://earlyretirementextreme.com/wiki/ ... rawal_rate

It how ever would be more correct if I just typed WR (withdrawel rate)

thrifty++
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Re: Wizards' journal (ERE in Denmark)

Post by thrifty++ » Fri Jun 05, 2015 4:07 pm

Thanks wizard. It is a bit difficult to understand without an example. I will look into it further

wizards
Posts: 108
Joined: Sun Mar 31, 2013 8:24 pm
Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Fri Jun 05, 2015 4:44 pm

Quick example.

Ny networth is 619,748
My spending is 22,059

To cover my spending I need to withdraw 3.56 % from my networth (22,059 / 619,748) or you could say I would need a 3.56 % yield on my networth to cover my spending without touching the principal.

thrifty++
Posts: 782
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Re: Wizards' journal (ERE in Denmark)

Post by thrifty++ » Fri Jun 05, 2015 6:42 pm

Ah I get you. Thanks. Your doing very well!
Mine calculates to 53% ! lol I have some catching up to do. Or the way I have been expressing it is years worth of expenses. Currently I have 1.89 years of expenses.

wizards
Posts: 108
Joined: Sun Mar 31, 2013 8:24 pm
Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Thu Jul 02, 2015 1:14 am

Short update…

First month this year my net worth decreased. I’m now at USD 624,429 and a SWR of 3.61 %.

Only two days left at the office – have been busy trying to finish as much as possible and preparing to be working from home. The remaining four weeks of July will officially be holiday, but I know for sure there will be some work. For a change I will now be paid for work done in my holiday – another great thing about my “new deal” :D .

DW will start working again Monday after staying at home for a year, she’s not looking forward to this, but hopefully it will be ok.

Spending last month was below budget again. The Riga trip, which was a huge success, was almost without any cost, as it was paid by savings from our card games (we meet op every 1-2 month and play cards – the winnings from the games go to a separate saving account).

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chol03ac
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Location: Copenhagen

Re: Wizards' journal (ERE in Denmark)

Post by chol03ac » Mon Apr 11, 2016 9:02 am

Hello wizard Impressive reading!!
I´m looking on buying some property/apartment to rent out.
I´m living in Copenhagen and here the prices to buy an apartment is high.
Do you have any recommendations/thoughts or input to stuff about renting out. What to look for etc, what to buy
Regards c

wizards
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Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Mon Apr 11, 2016 9:51 am

Thank you

Copenhagen is pricy no doubt.

What I’m looking for is:
Start yield +5%
Built no earlier than 1992 (rent control rules)
Low risk of vacancy (cities, good infrastructure etc).

Other strategies will work as well, but I’m sticking to the above.

Search for properties: I prefer Oline.dk and boliga.dk

Noedig
Posts: 178
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Re: Wizards' journal (ERE in Denmark)

Post by Noedig » Mon Apr 11, 2016 10:27 pm

Hello Wizard

Re: rental property. That game ('buy to let') has run its course here in the UK, but Copenhagen may be entering the spiral in the same way as London: excess of demand over supply for the foreseeable future, coupled with quite low interest rates. Pricey now is not the same as too pricey: I have literally thought to myself "Hmm ... these property prices are too high" for the last twenty years and only now realise, that what matters is demand, supply, peoples ability to pay rent (think a young professional couple), and the tax structure for ownership. Not, what you could build it for, or what the same would cost elsewhere.

If those stack up - and obviously you know how to tell when they do - then I would agree, it may be the way for you to go: and having spent some time in your wonderful capital (good infrastructure, beautiful, clean, peaceful, friendly) I can see why people would want to live there.

As for spending more time with your child when he is small : this is the best gift of a father, as a man I am proud of you for arranging to do that and keep working (and keeping those benefits).

Best of luck. I am visiting Copenhagen in November and cannot wait to experience the late night buzz and even the hot dog stands again. But not Fisk - once was enough!

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Eureka
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Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by Eureka » Mon Jun 13, 2016 2:35 pm

Hi wizards,

I just found your journal. What a journey! Congratulations with reaching your goal and that you quit your job already last year instead of dragging in out. Very inspiring.

I found this sentence in one of your earlier posts:
Still considering which plan to follow regarding when to quit the 9-5, not an easy one.

This is exactly where I am now.

Looking forward to meeting you in August,

Eureka

wizards
Posts: 108
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Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Mon Jun 13, 2016 3:49 pm

@Eureka

Thank you - I really hope to be able to attend the meeting.

It has been a while since I updated this journal... even after going part-time there never seems to be enough hours...

Some headlines from the last 11 months:
  • My second son was born 2½ months ago - so DW is back home again :)
    Raising two small boys takes time! (it's rewarding but still :) )
    Currently planing a remodeling of our house
    Net worth USD 677,058
    Budgetted SWR 3.52 % (we still manage to go below budget nearly each month)
    The cost of having kids doesn't have to be astronomical
    Current asset allokation: Stocks: 63 %, Rental 18 %, Bonds 11 %, Cash 8 %
    Would love to have stocks at max. 50 % - but it's hard to find alternatives (just missed two RE deals earlier this year)
    Begining to wonder what to do with further savings when I reach SWR goals (3.33 %)

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BadHorse
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Re: Wizards' journal (ERE in Denmark)

Post by BadHorse » Tue Jun 14, 2016 10:32 am

Hi wizards,

thanks for sharing your journey. A lot of good information for us newcomers there.
Hope to see you at the meet-up!

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Eureka
Posts: 306
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Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by Eureka » Tue Jun 14, 2016 5:19 pm

Thanks for the update and congratulations with one more son. I also don't think the costs of having a kid is that bad and absolutely doable for little money. However, now that my son has moved to his own place, there is no doubt that my money lasts longer.

thedollar
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Re: Wizards' journal (ERE in Denmark)

Post by thedollar » Sun Mar 26, 2017 5:21 am

Hey Wizards

Really enjoyed reading your journal and journey. Very inspiring. Hope you will update us soon on your progress :)

wizards
Posts: 108
Joined: Sun Mar 31, 2013 8:24 pm
Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Mon Mar 27, 2017 3:27 am

Nine more months have passed... never enough hours a day ;-)

Headlines:

* Two weeks ago DW started work again, youngest son will start day care next month - same place as his big brother, so at the moment I'm pretty busy with the boys...
* Remodelling of our house is finished
* Attended 3 Danish ERE meetings - nice to meet people with similar interests
* Gave a talk at a local assocation of Danish Stockholders Association about ERE and my investments
* Net worth USD 713,892 (28/2)
* Budgeted SWR 3.10%
* Asset allocation: Stocks 63%, Rental 18%, Bonds 11%, Cash 7%, Wind Turbines 1%
* These numbers will look different next month, as I have just completed a purchase of 3 rental apartments.
* Late 2016 I allocated a small number to: a) a US REIT, b) Local wind turbine coop, and c) Lendino - loans to small businesses.
* Starting this month, 80% of my salary after taxes (from part time job) will be allocated to a "family account" (nothing formal) - yet to be decided what to do with the money...

thedollar
Posts: 29
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Re: Wizards' journal (ERE in Denmark)

Post by thedollar » Mon Mar 27, 2017 12:44 pm

wizards wrote:
Mon Mar 27, 2017 3:27 am
Nine more months have passed... never enough hours a day ;-)

Headlines:

* Two weeks ago DW started work again, youngest son will start day care next month - same place as his big brother, so at the moment I'm pretty busy with the boys...
* Remodelling of our house is finished
* Attended 3 Danish ERE meetings - nice to meet people with similar interests
* Gave a talk at a local assocation of Danish Stockholders Association about ERE and my investments
* Net worth USD 713,892 (28/2)
* Budgeted SWR 3.10%
* Asset allocation: Stocks 63%, Rental 18%, Bonds 11%, Cash 7%, Wind Turbines 1%
* These numbers will look different next month, as I have just completed a purchase of 3 rental apartments.
* Late 2016 I allocated a small number to: a) a US REIT, b) Local wind turbine coop, and c) Lendino - loans to small businesses.
* Starting this month, 80% of my salary after taxes (from part time job) will be allocated to a "family account" (nothing formal) - yet to be decided what to do with the money...
Thank you for the update, Wizards! Awesome progress.

Hope you don't mind me asking some questions, feel free not to answer them.

1) What type of bonds do you purchase? is it through nordnet?

2) What is your strategy regarding stocks? Are you buying index funds or single stocks? Danish or international?

3) You state that you are looking for 5% start return for rentals - are they still out there? And is the 5% before taxes and expenses?

wizards
Posts: 108
Joined: Sun Mar 31, 2013 8:24 pm
Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Mon Mar 27, 2017 2:20 pm

1) Corporate Bonds - and no, this is through a "normal" bank.
2) Mostly DGI and a bit in index. Mostly international - if you are a shareville member - look for wizards ;-)
3) 5% incl. all expenses but not tax. Please note this is for "new" (build after 1992) properties. The 3 I'm buying now are older (and cheaper) - the start yield is 8-9%.... Build after 1992 and start yield +5% are still out there, but not in Copenhagen, Roskilde, etc.

Stahlmann
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Re: Wizards' journal (ERE in Denmark)

Post by Stahlmann » Mon Mar 27, 2017 2:23 pm

How did you accumulate so much money in so heavy taxed country in young age?

wizards
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Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Mon Mar 27, 2017 2:47 pm

Hard work - First paycheck before turning 10... Full time work before turning 20 (studied in the evenings).
Frugality - and very little lifestyle inflation
Invested the "surplus".

In regards to taxation - In my opinion it's different game, different rules. Yes some tax brackets seem harsh, but I got free education, free healthcare and the same for my kids..

wizards
Posts: 108
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Location: Denmark

Re: Wizards' journal (ERE in Denmark)

Post by wizards » Sat Apr 01, 2017 11:44 am

Here's the "new" asset allocation: Rental: 27%, Wind Turbines: 1%, Stocks: 58%, Bonds: 11%, Cash: 3%

Net Worth USD 729,131 - SWR: 3.08%

Nice to see the stock number reduced (and not because of market losses) - still think 50% would be a nice number to aim for - and guees I need to boost my cash position ;-)

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