Frihet / Freedom - Journal

Where are you and where are you going?
frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Fri Jun 16, 2017 2:50 pm

Experienced a known pattern the last few days. A pattern of prejob anxiety and dreaming extra about ERE. You almost believe you are ERE already when you have 4 weeks off frequently. This time the anxiety was even stronger because the work I'm being sent on contained more responsibility than usual. I always been a responsible person who strongly dislikes formal responsibility.

Culminated with me throawing up yesterday, felt better afterwards. It was similar to throawing up on ayahuasca where fear and emotion can leave the body that way.

Anyhow spent some time on Tyler's excellent site playing with withdrawal rate calculator's for the Golden Butterfly portfolio

https://portfoliocharts.com/portfolio/golden-butterfly/

Felt even better afterwards. Because now I sat the goal of increasing my portfolio with 300000sek for a 5% SWR as a first step and that is not so far away. If the job is unbearable then I could quit or talk to my boss from a position of strength that I want less responsibility.

I would prefer a 4% SWR but I don't want to loose health and sanity just to reach a number.

I also stated a final number with my girlfriend as a witness. I will not work longer when I reach 3 300 000 SEK. I have such a hard time focusing on several things in life and want to quit this quest for FI and get on with the important things. Who know's how long life will last?

Feels good to state it here also. 3 300 000 SEK maximum.

I how also checked how much student grant/debt I have left and found out that I can study for 14 years half time receiving 1412SEK in grant and 3604SEK as loan per month. to make use of this "free" money is another thing to consider. In that case I will put the loan in an separate Golden Butterfly Portfolio and doesn't need to repay it until I guit studying. A bonus of becoming ERE and never having attended university.

Carrying on towards freedom.....

wolf
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Re: Frihet / Freedom - Journal

Post by wolf » Sat Jun 17, 2017 12:31 am

frihet wrote:
Fri Jun 16, 2017 2:50 pm
Anyhow spent some time on Tyler's excellent site playing with withdrawal rate calculator's for the Golden Butterfly portfolio
You are following two different portfolio allocations, if I saw it correctly.
- Permanent Portfolio and Golden Butterfly

Why is that so? What advantages you think you have? Because, I guess, you also have more efforts controlling and managing it.
Right now, I do think about my portfolio allocation and maybe you can help me with some inspirations, because till today I thought I need a one consistent portfolio allocation strategy.

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Sat Jun 17, 2017 10:11 am

Hi MDFIRE2024,

Yes you are correct i have two diffrent portfolio allocations. The reason is historical. The Golden Butterfly didn't exist when i started, it's Tylers invention nearly 2 years ago. So from the beginning I had one PP in $ and one in SEK. Unfortunately it's not easy to keep a perfect allocation in PP/GB in SEK as there is no way to find 30 years bonds.

So I aimed for the middle way of keeping half in $ and half in SEK

I wanted to switch to the GB for better returns/SWR. But once again choose the middle way of only changing the swedish one. I don't trust the market right now and 25% PP stocks compared to 40% GB should be more stable. I also choose to splitt the GB between 20% swedish large cap and 20% emerging markets for further diversification.

The reason why the GB is smaller is because I choose to split my stock account in 5 parts and buy IAU as the gold portion. I hold quite a lot of physical bullion. But it's hard to balance the portfolio with that, hard to sell + need to pay capital gains tax on bullion but not ETFs in Sweden.

Not sure if this makes any sense it's more a acting on what feels right and swedish specific rules than being as scientifical as many on this forum.
In the end of the day it's my money and I need to feel right about my allocations :)

Make good use of Tylers site. It's amazing!

wolf
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Re: Frihet / Freedom - Journal

Post by wolf » Sat Jun 17, 2017 2:11 pm

Thanks for the explanations. Yeah, you are right. It, the personal portfolio allocation, has to feel right.

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Mon Jun 19, 2017 3:49 pm

Received summer bonus and salary today. A nice reminder why I put myself through the hassles of working far away from home for weeks throwing up before some trips.

117000 NOK in take home pay. This is not normal but love every June when it happens. Almost one year of spendings in to the account.

Ka Ching

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Thu Nov 30, 2017 4:03 am

After posting in the crypto thread and reading back in my journal I feel I need to ventilate something, mostly for future reference to my future self.

I wrote in June this year that I will quit at 3 300 000 sek portfolio then being at 2 million. Well when I calculated net worth again yesterday it was 2 700 000 sek. With about 600 000 sek being crypto. My other portfolios haven't performed very well neither has my savings rate.

With the volatility of crypto and difficulty of using it in the day to day life. How much can I trust this portion of my portfolio value towards the SWR?

No answer but something to think about. Neither to see crypto rising dramatically surpassing my target or falling steeply taking me further away would surprise me. Or worst taking me beyond my target, me quitting work and to then see my portfolio value crashing.

wolf
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Re: Frihet / Freedom - Journal

Post by wolf » Thu Nov 30, 2017 11:51 am

How about selling crypto in small parts, e.g. 10%...another 10%.. and invest it in other asset classes?
Then you can secure your gains with crypto bit by bit :-) and build up a more defensive, income-focused portfolio.

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Fri Dec 01, 2017 9:54 am

MDFIRE2024 wrote:
Thu Nov 30, 2017 11:51 am
How about selling crypto in small parts, e.g. 10%
Yes that's a good plan, kind of been doing that with my balancing into gold. But the greed part of me likes to keep a sizable crypto position for a possible home run.

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Wed Dec 13, 2017 3:31 pm

Just summarized this year spending as I have received my last salary for the year. It was a pleasant surprise. I have not kept track of spending. But came close anyway to my goal of 10000Sek per month - 120000Sek per year.

As I mentioned last year I earn in Nok and spend in Sek. So this is not 100% correct but close enough. I have on average earned a few % each time i've changed currency.

756724Nok
$90847
Before taxes. That was 47940Nok less than last year. My company have been cheap on overtime because of the down turn.

522964Nok
$62783
In take-home pay. Just 15650Nok less than last year. The Norwegian way of calculating taxes is not easy to understand. I hope I won't owe during next tax return.

123949Sek
$14896
Spent this year. Which of 12269Sek was spent on RealVisionTV + mining newsletter and 17382Sek was spent on retreats. None of those was necessary spending but things I enjoy and learn from.

94297Sek
$11344
More barebone spending. But still with the possibility to cut more.

76.3% Savings Rate
That was actually 4.8% better than last year. Hadn't expected that when I started today!

Next on the agenda is the net-worth calculation. Who knows what the crypto goods will bring tomorrow. Might be FI with a 4% SWR already.

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Thu Dec 14, 2017 7:20 am

Ahh as I suspected, at this moment in time the crypto Gods were on my side. Not sure what offerings to make to continue trusting them though? Have therefore made three portfolio allocations and calculated SWR.

3 081 359Sek
$367 112
Total net-worth - which is enough to be FI with a 4% SWR

2 207 041Sek
$262 800
Net-worth inside financial system + physical metal - which is enough to be FI with a 5.6% SWR

1 720 601Sek
$204 984
Net-worth inside financial system - which is enough to be FI with a 7.2% SWR

Time to get out and catch some of the last little light of this gray December day. Might treat myself to a nice lunch actually. I think I deserve that after having achieved this. Funny had an argument with my boss this morning about traveling to the rigs 2 days prior to my work period without getting overtime.

Oh well it doesn't matter - I have FI/FU money now :)

Maybe I come back later today with portfolio allocation percentages.

Enjoy your day everyone - keep accumulating freedom on all fronts!

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Thu Dec 14, 2017 6:16 pm

Ok so this is my unconventional allocation. Probably a bit crypto overweight if you ask sensible people and not crypto bulls :lol:

Permanent Portfolio in USD
26.7%


Golden Butterfly Sek/USD mix
22.9%

Containing
20% Emerging markets
20% Swedish stocks
20% Gold - ETF IAU
20% Short-term Swedish bonds
10% Medium term Swedish bond
10% Long term US bonds ETF TLT

Cash in savings account
9%

This is basically 2 years spending. When I was fed up with work this summer I decided to accumulate and keep this permanently. So I could quit any day and have this time frame to decide what to do next. Safety net upon safety nets........Have I forgotten that life is uncertain anyway?

Speculative mining shares
3.2%

A 20% loss on this part. Have been unwise and averaged downed too much on 3 large losses.Of which 2 have been sold, but there is still hope on the last one. Also, experienced a big win, for this portfolio, when a company got bought out so I'm hoping to turn this around.

Extra Stocks/funds
0.6%


Extra Gold
9%


Silver
0,6


BTC
24%


LTC
1.6%


ETH
1.4%


ETC
1%


Another way to divide the portfolio would be a "Crypto Butterfly" who clearly needs some rebalancing.
28% Crypto
21% Precious metal
20% Short-term bonds /Cash
20% Stocks
11% Medium/Long-term bonds

Or if I take the Crypto part out to find something that can be put into portfoliocharts.com.....
Nah that became too weird to write about. But it made one thing clear. I need to really think about my overall portfolio before I retire. The numbers I put in could only support closer to 3% SWR across countries. It has been savings rate and crypto luck that has built this scattered allocation. But for stability in retirement something else is needed.

wolf
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Re: Frihet / Freedom - Journal

Post by wolf » Fri Dec 15, 2017 12:39 am

Hi Frihet. Great numbers this month! I just compared them to your first journal post in August 2014. Your progress is quite impressive.
As you come closer to FI, I would like to ask you about your thoughts about that. Do you already have any plans to transition from FI to RE, or other things? Or do you want to save more in order to build up a "Margin of Safety"? Regarding ERE, are there some potentials in your expenses, which can be improved with "Web of goals", efficiency, etc.? If you don't mind can you share something about your ERE-kind of life?
Anyways, thank you Frihet for shareing those three interesting journal posts about your SR, Networth and Asset Allocation.

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Fri Dec 15, 2017 8:00 am

MDFIRE2024 wrote:
Fri Dec 15, 2017 12:39 am
. Do you already have any plans to transition from FI to RE, or other things? Or do you want to save more in order to build up a "Margin of Safety"? Regarding ERE, are there some potentials in your expenses, which can be improved with "Web of goals", efficiency, etc.? If you don't mind can you share something about your ERE-kind of life?
Thank you MDFIRE2024,

For commenting and the overall positive vibe you spread on the forum. Have noticed your comments in other posts as well. It's a good thing for introverted forum lurkers like me that some like to participate and engage us turtle shells.

I'm thinking of your questions and might have to let them sink in for a few days. Short answers today.

Yes, I want to accumulate a bigger margin of safety before I quit. Thinking of working one more year and see where I stand then. That will mean around 400000NOK more saved. Ideally, put to work within the financial system to bridge the gap between portfolios.

There are expenses that could be cut. But how much do I want to cut? I also want to be able to spend money on my interest. Actually, they may very well go up in retirement as I won't be on the rigs 100days a year.

The short answer about the purpose of ERE life is that I want to 100% pursue the spiritual path. Meditation, retreats and so on. There are some specific reasons that stem from personal experiences with my former hiatus from work that make me feel that I need to be FI to do this. Might get into that in my next post. As I feel the "dark" side of meditation is not talked about enough with all the hype about mindfulness and so on.

Enjoy your weekend! Now off to Indian food with my woman.

frihet
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Re: Frihet / Freedom - Journal

Post by frihet » Sun Feb 18, 2018 1:36 am

Just came back from 3 weeks in mother India acting on a New Years resolution to start living and quit waiting for a perfect future. Oh was it reuvinating to step into her embrace again. There is something unexplainable happening there with all the devotion and prayer going on constantly. Spirit is closer to matter.

I have decided that my savings is enough of a safety net for now. I don't want to quit with this amount but if needed I could. So it's time to live the life I want right now. To postpone it any longer makes me depressed and spiritually drained.

It's amazing how being around a holy site in India with likeminded people can make meditation so easy and connection to the inner being so rewardingly fulfilling . There will certainly be more trips and retreats this year. Maybe next off period I'll be going to the US to spend time with a teacher I have a connection to.

One of the biggest reasons for me wanting to ERE has been that intense spiritual practice have made me ungrounded with a weaker intellect and memory in the past. This made me scared and feeling that I needed to be able to sustain myself without working. This scare is now very much lessened as I know that I can afford a simple life with current amount if I cut back on spending. Being in India again just reaffirmed how little I could live off there for example.

If work becomes impossible in the future I will simply quit and align myself with the budget at that time. Until then I will spend what I feel is needed on travel and retreats to progress on the path. Enjoying the possibility that my work schedule and salary makes possible.

In gratitude

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