Early Retirement Extreme Forums

@Stahlmann - You know English and presumably German. If you want to emigrate and get insta 2-4x pay rise, what's stopping you to do it immediately?

I have to write this. This is kind of a disaster. 14 of 16 stock sessions with a drop in prices. It pushed me back ~ 6 months, about 25,000 PLN or 6,5% of my total assets or 9,2 % of my stock assets. Main polish stock index dropped 10,2 % (from 2,350 pkt to 2,100 pkt). Am I stupid no to sell it before. Is value investing still suitable that times?

33% of portfolio in 10-year government bonds ( 3% interest), 65% in stocks (big companies from local market) , 2% in cash and I dont want neither sell nor buy anything.

End of August numbers:

Cashable assets : 138,900
Stock assets : 236,276
NW : 178,581 (!!!!!!)
1 m DECREASE : 21,566 (+6800 savings, -28,366 losses)
12 m increase : 25,637

Saving ratio : 68,1%, 1/12 of my 12 months increase = 2136
Stock market terrible results,
but I've got a second pay rise this year. This year cumulative pay rise is 12%.

Congrats to the pay rise!

"losses" from selling or value reduction of stock assets?

@wolf, value reduction of stock assets.

oh! what happened?

The polish stock market has been going down down down =D

10cents wrote: ↑

Mon Aug 19, 2019 4:07 pm

It pushed me back ~ 6 months, about 25,000 PLN or 6,5% of my total assets or 9,2 % of my stock assets.

I'm 2 months or 6.78% down.

10cents wrote: ↑

Sun Sep 08, 2019 11:40 am

@wolf, value reduction of stock assets.

Are you strongly invested in the polish stock market? Have you thought about diversifying? I kept most of my assets in Euro Stoxx 600 for a long time because I thought the Euro would get much stronger again. I lost out on a lot of world-market gains in that time.

@finity, I only limited myselftopolish stock market. I have some IKE/IKZE stock account to invest tax-free. I don't have any deeper knowledge about tax-free founds available in Poland.

Can you invest in US etfs/funds and other emerging market and international funds?

2Birds1Stone wrote: ↑

Thu Sep 12, 2019 1:28 pm

Can you invest in US etfs/funds and other emerging market and international funds?

Yes and no. It is possible to invest in founds you mentioned about. But not every broker offer it, most brokers offer very limited spectrum of found, sometimes with high (2% - 3%) commission and sometimes as taxable account. Private pensions schemas are not so common in PL, "pioneer life is hard". Massive pension savings are also 'new' for me. 5 years ago i didn't think about it. Everything started 3-4 years ago with MMM blog at the same time as my salary went 60% up with job change.

End of September numbers:

Cashable assets : 142,000
Stock assets : 248,850
NW : 186,500
1 m increase : 7,024 (+7000 savings, +24 gains)
12 m increase : 32,300

Saving ratio : 70%; 5.5 months astern

End of October numbers:

Cashable assets : 144,900
Stock assets : 250,280
NW : 192,570
1 m increase : 6970(+6700 savings, +270 gains)
12 m increase : 38,280

Saving ratio : 70%; 5 months astern

End of November numbers:

Cashable assets : 148,440
Stock assets : 252,700
NW : 199,600
1 m increase : 7030(+6700 savings, +330 gains)
12 m increase : 4,980

Saving ratio : 67%;
BMI 22, I started weider six this month, so 30 days of excercise ahead of me. Year 2020 looks like for me to be fitness year. And this post is a 3rd anniversary on this forum.

2019 Q4 numbers:

Cashable assets : 152,120
Stock assets : 255,908
NW : 206,570
The 2019 year is almost over, so it's time to sum up.
It was a great year in work. I have received a pay raise in Q2 and been promoted to senior position in Q4. My salary went up 25 % in last 12 months. Superb !!!
On the nagative side : polish stock exchange is in deep ass, particularly blue chips index YTD -6%.
And my stock portfolio (62% of assets) suffer from this.
Despite this, I have reached all my targets with a surplus.
NW is more than 200k PLN.
Total assets is more than 400k PLN.
And liability (mortgage) is coverd in cashable assets (government bonds) to an extent 75%.
Financial market in Poland is in a strange possition.
10Y Government bond gives 4,1% interest gross (3,3% net), inflation is ~ 2,5% and mortgare rate is 1,8%.
This is crazy. It doesnt make sense for me to overpay mortgage, it is better to pay regular installment and keep redundant money in government bonds.
Stock boom is absent in Poland right now, but this situation wont last for ever.
The new 401k-like pension program started in Poland this year. Participation is low because lack of trust for any government actions, but nothing can stop demographics, nothing will stop people to safe in future for grey years.
So I have to set a good position to benefit in this.
I must admit that my idea to win with the market was naive. I lose with the market, my performance was ~ 4% below market, 'I bet for wrong horse'. Now,I want to gradually transfer my stocks assets to index based ETF founds, the same way 401k-like pensions programs will be.
Of course, month after month saving ratio 70% is a must.
In 12 months I'd like to have 3 1/2 targets reached:
i) NW more than 300k PLN
ii) Total assets more than 500k PLN
iii) Mortgage is covered in over 100% in profitable bonds (or mortgage paid off if sth significant happened with mortgage/bonds interest)
iv) My stocks assets are proftable and transfered in more than 50% from my individual broker account to ETL index founds.
Finger crossed.

Hey 10cents, congrats to your increase in nw and your sr!

What's the P/E-Ratio of Poland's main stock index?

@wolf, P/E is ~ 15 for main stock index in Dec'19,
with 12 months min = 14 and 12 months max = 20 and varies from Q to Q due to one-offs (mostly negative) like legal dispute about foreign currency mortgages bubble from 2006-2009 years (Court of Justice of the European Union judgement) or energy industry transformation towards zero emission. Profits and losses are not repeatable. Our economy is in a process of revealing 'dead bodies in the closet'.

C-EE countries are two steep behind Wester Europe Countries in many fields. Real estate prices are still low. Should I came into rental market? I 'm going to buy a flat and rent it and year 2020 is goin to bring changes for me. Will it be positive?
At this time I have my mortage covered in 75% in cashable assets and some money in stocks. How about diversification. Is it too late with 1100 euro/m2 for flat in 100,000 inhabitants city, somewhere 350 km north of Vienna?
One bedroom apartment for 150.000 PLN (35.300 euro) is a good price?
Time will show.
NW = 212.630 PLN
1 month increase 6.060 PLN