the dollar journal

Where are you and where are you going?
herp
Posts: 141
Joined: Sat Apr 08, 2017 1:11 pm

Re: the dollar journal

Post by herp » Mon Dec 24, 2018 9:38 am

Nice update, thedollar!

It's interesting how we pretty much have identical weight loss goals. I had a goal to lose just over 10kg this year. I got to just over a loss of 4kg but recently I've gained a bit back, so I'm down about 3kg for the year, which isn't much, but still better than nothing.
Do you have any diet plan? The last time I lost weight, good old CICO worked well for me, although you obviously need to exercise your inner control freak (but is that any different with any other diet?).

Glad to hear you've found a new job. What are you doing these days? I'll also be looking for a new job in January because my current contract is about to expire. I've been happy with my workplace and my manager and coworkers have been very pleased with my work, but unfortunately I cannot continue for reasons internal to the organization.

Mr. Market has shown his moodiness this year, but that's just an opportunity to buy more on sale :)

Happy holidays!

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Wed Dec 26, 2018 5:28 pm

Nice to hear from you again, Herp!

I've not taken any serious steps to lose weight yet. I did track my weight daily primo 2018 for a few months and lost around 7kg to reach my preferred weight. However, I'm back to my starting point again (sigh) so will just start tracking it again. Tracking stuff - be it expenses, savings or weight - seems to do the trick for me!

These days I'm working with macro economics and financial outlooks but within an industry where I have limited experience. So I'm on a steep learning and paycheck curve. Complete change in work environment from working 50-60 hours a week to now 35-37 hours with no KPIs, time management or other bull.

Are we gonna hear from you on your journal soon?

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Wed Dec 26, 2018 5:30 pm

Portfolio update: Gained 1x yearly expenses on my portfolio today! Let's see where this beast is going next year...

herp
Posts: 141
Joined: Sat Apr 08, 2017 1:11 pm

Re: the dollar journal

Post by herp » Wed Dec 26, 2018 5:39 pm

I hear you on the tracking. Having a plan and continuously measuring your progress really helps me keep on track, too.

Sounds like an interesting field of work. I have no experience with it myself, but after delving deeper into personal finance over the past few years, my interest in the field has grown.

I'll be updating my journal in early 2019. Still have a few days left of expenses and income in 2018 :)

Big bump today in your portfolio! What does your asset allocation look like now?

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Wed Jan 30, 2019 2:21 pm

Monthly comment:
Business as usual. Huge YoY dividend increase. NW increased 2.6 x yearly expenses during January and has regained approx. December losses.

Recent purchases:
None! Trying to stash some cash.

January:
- Income
-- Dividends: $446 (YoY: 90.8% increase)
-- TTM Dividends: $1.220 (LM: 1.47% increase)
- Expenses
-- Expenses: $1,515
-- TTM Expenses: $1,641

Dividends received:
GS - $10.40
LMT - $22.00 - 10% increase!
BAC - $29.70
CCI - $42.75 - 7% increase!
NKE - $11,00 - 10% increase!
RCL - $17.50
ITW - $25.00
PEP - $25.04
MRK - $30.25 - 15% increase!
DIS - $25.52 - 5% increase!
MO - $29.60
PM - $34.20
O - $19.89 - 2% increase!
MDT - $20.00
Tryg - $52.25
CMCSA - $17.48
CSCO - $31.68
GE - $1.62 - Massive decrease!

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Wed Jan 30, 2019 2:52 pm

herp wrote:
Wed Dec 26, 2018 5:39 pm
I hear you on the tracking. Having a plan and continuously measuring your progress really helps me keep on track, too.

Sounds like an interesting field of work. I have no experience with it myself, but after delving deeper into personal finance over the past few years, my interest in the field has grown.

I'll be updating my journal in early 2019. Still have a few days left of expenses and income in 2018 :)

Big bump today in your portfolio! What does your asset allocation look like now?
Herp,

Following your updates with great interest. Numbers and momentum looking solid - 50%+ savings rate is for the very very exceptionally few in this country. Always enjoy meeting like minded-people.

My asset allocation is just around 60% stocks and 40% cash these days as it has been for quite some time now. Strategy is to buy and hold companies with revenue momentum/growth and steady/growing profits. And lots of diversification of course.

Asset allocation
  • Stock 60%
    • 60-70% tracking indexes
      • SP500 manually tracked
      • DAX30 manually tracked
      • C25 manually tracked
      • Danish "Investmentclubs" tracking global stock market
    • 30-40% stock picked manually
      • Various US, Danish, Norwegian, German and Asian stocks
      • Ramping up some REITs
  • Cash 40%
    • Mostly just earning little to no interest
Where I'm heading
Currently I have halved and exited some smaller but stupid stocks I picked based on media coverage and speculation that they would rise. I believe more and more in an index strategy so that's where I'm heading. Have come to realize (and proved somewhat) that I don't know what stocks will rise better than the market. Only reason I haven't gone 100% index funds is the stupid way ETFs are taxed in Denmark and high costs of Danish "investmentclubs" tracking indexes.

In addition, I am looking to go towards 100% stock allocation in the coming years. Might do 60%->70% in 2020 and 70%->80% in 2021 etc. Would love to diversify with some properties/rental income, maybe 20-30%. However, I don't think I'd care for the work/complication that comes with rentals. And prices are not at all attractive where I live at the moment. In my head properties should yield above 15% to make up for the risks involved and around here it is more like 1-2% with unrealistic budgets for maintenance and idle time.

- What about your asset allocation, Herp?

herp
Posts: 141
Joined: Sat Apr 08, 2017 1:11 pm

Re: the dollar journal

Post by herp » Wed Jan 30, 2019 4:49 pm

thedollar,

Cheers for the update and thanks for the compliment! My savings rate should even be a bit higher this year as I've now mostly finished moving and cut my rent some.

I believe the word you're looking for is "mutual fund" :)

I like the idea of diversifying with properties and it's something that I've also considered doing, but definitely not through rentals as it's too much work for my taste as well. I've toyed with the idea of adding REITs, but on the other hand I also want to keep things relatively simple.

A 1-2% yield on a property is way too low, I agree.

You're a brave investor to want to go full equities. Hats off to you!

My asset allocation is fairly similar to yours - I have a 60/40 split in "frie midler" where most of my assets are. In retirement accounts I have a more aggressive split at 75/25. I figure I'm fine taking more risk in retirement accounts as we won't be able to withdraw from those until we're well over age 60 anyway. However, no matter what happens, I won't go above 75% stocks for behavioral reasons.

In "frie midler" I have most of the fixed income in cash and a small chunk in investment grade corporate bonds through an ETF. The stock portion right now is roughly split between half index funds and half individual deep value stocks (all cigar butt stocks trading below liquidation value). The portfolio of individual stocks had a pretty bad year in 2018, but so far 2019 is off to a fairly decent start.

wolf
Posts: 925
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: the dollar journal

Post by wolf » Thu Jan 31, 2019 12:10 am

thedollar wrote:
Wed Jan 30, 2019 2:52 pm
Only reason I haven't gone 100% index funds is the stupid way ETFs are taxed in Denmark and high costs of Danish "investmentclubs" tracking indexes.
How (high) are ETFs taxed in Denmark?

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Thu Jan 31, 2019 1:19 pm

Taxed at 27 to 42 percent. However, you have to pay taxes of gains each year. For normal stocks and Danish "investmentclubs" (in lack of a better term) you only pay tax when you sell.

herp
Posts: 141
Joined: Sat Apr 08, 2017 1:11 pm

Re: the dollar journal

Post by herp » Thu Jan 31, 2019 2:24 pm

ETFs are taxed as "kapitalindkomst", which typically ranges from a rate of about 37% to 42%. However, they are taxed according to the principle of "lagerbeskatning", a tax on the value change from December 31st in one year to December 31st in the next year. If your "kapitalindkomst" in one year is negative, the deductive value of the loss is usually not as high as the tax on realized gains - essentially asymmetric taxation.

It's a stupidly complicated system and I wish they would just be taxed at the time when you sell.

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Sat Feb 09, 2019 8:56 am

@herp

Believe they are now taxed as stocks (27-42%). However, still with lagerbeskatning.

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Sat Feb 09, 2019 9:15 am

Recurring expenses on a monthly basis creeping up which I can't seem to get rid of (and excuses to why I can't get rid of them):

Google Storage - $2.6 - Seems free version is only 15gb and my gmail alone stores 14gb.
Apple Storage - $3.8 - Phone, message og picture backup
Gym membership - $41 - I have until recently been a proponent of running outside, doing push-ups and sit-ups, however, I enjoy working out in the gym with my girlfriend
Small TV package - $33 - Around 5 channels - mandatory by owners' association. Do not want to pay for that shit.
Health insurance - $40 - Through work. Again, mandatory. We even have universal health care in Denmark!!
Unemployment insurance - $67 - Believe I could get rid of this one, however, I'll stay until my current job outlook is more stable.

Total?: $187.4 (around 6.2 hours each month at $30 hourly pay after tax)

Conclusion?: I must be insane.

herp
Posts: 141
Joined: Sat Apr 08, 2017 1:11 pm

Re: the dollar journal

Post by herp » Sat Feb 09, 2019 1:30 pm

thedollar wrote:
Sat Feb 09, 2019 8:56 am
@herp

Believe they are now taxed as stocks (27-42%). However, still with lagerbeskatning.
Not before 2020

https://www.invested.dk/skat/kommende-s ... t-til-2020

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Sat Feb 09, 2019 4:36 pm

Sorry you are correct. This is what happens when you are only reading news headlines. :D


They are not in a hurry, huh? Seems like pretty much all planned tax changes proposed the last few years have been with effect from a date after this summer's election. The opposition will probably revert all of it if they are elected. Anyway, won't change much with regard to ETFs - lagerbeskatning persists so not really a game changer.

herp
Posts: 141
Joined: Sat Apr 08, 2017 1:11 pm

Re: the dollar journal

Post by herp » Sat Feb 09, 2019 5:10 pm

I share your sentiments, except I'm not sure if the changes to ETF taxation will be rolled back.

While lagerbeskatning will persist, the asymmetrical taxation will disappear - losses will be deductible at 27/42% just like gains.

What I'm unsure of, however, is how many fund providers will actually file to be compliant with danish taxation regulations. It's a small market and passive investing has a pretty small market share here as is, but perhaps that is exactly motivation for bringing more competition in?

Eureka
Posts: 322
Joined: Fri Jun 10, 2016 11:03 am

Re: the dollar journal

Post by Eureka » Mon Feb 25, 2019 4:58 am

Oh, here is some good news for you then. An owners association in Denmark can no longer force you to pay for their cabel tv. That law has been enforced since last year. Just write to your house administrator and cancel your subscription. If - for whatever reason they refuse - you can send a complaint to Slots- og Kulturstyrelsen. They will then take affair. All details here: https://www.kfst.dk/konkurrenceforhold/ ... orbrugere/

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Mon Feb 25, 2019 1:11 pm

Thank you, Eureka. That is interesting to say the least! Would love to cut that monopoly off, however...

Problems I foresee:
1) You need a TV subscription to have internet connection (and I like the internet!).
2) I currently do not pay for TV subscription but rather I pay towards an "antenna budget". As it is stated in your link the association is permitted to charge for that.
3) The owner's association is quite small and I do not want to rattle the cage too much.

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Tue Feb 26, 2019 1:34 pm

Monthly comment:
...

Recent purchases:
None! Trying to stash some cash.

February:
- Income
-- Dividends: $633 (YoY: 16.2% increase)
-- TTM Dividends: $1.228 (LM: 0.6% increase)
- Expenses
-- Expenses: $1,694
-- TTM Expenses: $1,650

Dividends received:
JPM - $56.00
T - $61.20 - 2% increase!
VZ - $47.60
SBUX - $27.00
SIE - $197.73 - 2% increase!
AAPL - $115.34
CAT - $15.48
ABBV - $32.10 - 11% increase!
C - $24.30
O - $20.30 - 2% increase!
PG - $35.86

thedollar
Posts: 87
Joined: Tue Feb 21, 2017 4:07 am

Re: the dollar journal

Post by thedollar » Fri Mar 29, 2019 1:31 pm

Monthly comment:
A bad month for 12 months average dividend income. Got tempted to buy Carnival to be start small exposure to the cruise industry and believe the outlook is great for the company.

Recent purchases:
Carnival

March:
- Income
-- Dividends: $3,601 (YoY: -21.2% increase)
-- TTM Dividends: $1.147(LM: -6.59% increase)
- Expenses
-- Expenses: $1.366
-- TTM Expenses: $1,638

Dividends received:
Fund #1 - $73.82
Fund #2 - $42.55
Fund #3 - $30.27
Fund #4 - $5.00
Fund #5 - $160.30
Fund #6 - $275.76
Fund #7 - $166.67
IFX - $18.73
NZYM - $39.39
WFC - $39.60
PFE - $41.76
INTC - $28.98
ORSTED - $128.52
HON - $18.04
CVX - $44.03
XOM - $66.42
Roche - $129.65
JNJ - $47.70
MMM - $21.60
MSFT - $92.00
O - $20.30
MCD - $25.60
PND - $336.82
NTES - $4.80
CLB - $65.45
DSV - $13.64
Solar - $4.24
DB - $512.58
UNH - $16.20
KHC - $18.00
LINDE PLC - $13.13
GN - $47.05
Novo - $318.36
NDA - $656.97
EXPE - $6.40
HD - $29.92
DFDS - $41.21
X% increase!
Last edited by thedollar on Sun Mar 31, 2019 10:16 am, edited 1 time in total.

herp
Posts: 141
Joined: Sat Apr 08, 2017 1:11 pm

Re: the dollar journal

Post by herp » Fri Mar 29, 2019 1:39 pm

Quite a few individual stocks in your portfolio, and also quite a number of funds.

Can I ask how many different stocks you own? What about funds?

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