Looking forward to 2018

As regular readers may know, I don’t really do calendar year end as I have said before. I measure everything on the tax year simply because it makes my life much easier – my pension statements come through and validate what I have put in, my ISAs allowances go for that period as well so why make life harder for myself.

I’ve also never been one for celebrating New Year – it is an arbitrary date with no real significance to me – in fact this year I was in bed on New Years Eve by 10:30pm – I slept through all the fireworks. It was bliss – it meant I could go for a nice walk on New Years Day at 8am, it was lovely and quiet with only dog walkers and parents with small children out and about, and not many of them!

A lovely refreshing walk, unlike a lot of people I know who didn’t surface until midday with a rather large hangover, meaning they wrote off the entire day – the last day off before the day job kicks in.

Having said all that, it is quite interesting to see how 2016 went, and I do track my annual expenditure on both calendar and tax years, just to keep me busy.

Looking back at 2017

So firstly I guess, what changed from 2016? Well, from my essential categories, my bills, food and alcohol for home and holidays all came down from 2016. The flip side is I spent more in 2017 on alcohol and eating out. Ooops. I guess it all balances out!

Overall however I decreased my total expenditure by approximately 15% meaning that my savings rate (excluding pensions, bonus etc.) was a shade under 33%. With some really good months tucked in there my rolling 12 month savings rate is starting to move up towards 40%. Happy days!

If I include my pension and bonus (which went into pension) in my income, my overall savings rate was just under 54%. My total pension provisions went up by almost the same as my gross salary. I can’t even describe how ecstatic I am at that! Even though a large chunk of this is in pensions which I can’t access for at least another 13 years, it puts me in a really strong position.

I am noting the difference in my mentality as well knowing that I have those funds in place, and is making me look at if I can drop some of my insurance now.

So what happened to my initial dry runs from last years thoughts?

Dry run 1 – savings. I managed to stick the GTP ISA income and not take anything out, and in addition later in the year I increased my rainy day fund monthly contributions, so forced myself to run things through. The downside is that my cash flow fund has not really gone up at all. I need to work harder on this.

Dry run 2 – alcohol expenses. Well… technically I did reduce the expenditure…. by just under 1% from 2016! I think I need to work harder on this!

Dry run 3 – other expenses. This was a bit more successful – I reduced them by approximately 10%. Not bad, but not enough as still a high expense, but then not a surprise given some work in the home.

The Christmas Break

So for me the Christmas break was in general good. I had a spell of being unwell leading me to not eat or drink for over 48 hours, and my other half considering calling an ambulance. I accept I wasn’t on great form but I don’t think it was quite that bad.

On Christmas Day, given that I was cooking and providing alcohol, I decided I wanted to see if I was well again or not. How could I tell how I would be after 48 hours with only 2 cups of mint tea?

Simple – a shot of beautifully chilled Zubrowka – a delicious vodka at 9am. The good news was that I held strong, which meant I could enjoy the majority of Christmas Day feast.

Needless to say then for the rest of the break I made up for the lost time. So much so I was actually rather embarrassed when I was putting the recycling out. This led me on to think about what do I want to do differently in 2018.

Firstly, I aim to reduce my alcohol consumption.

Secondly, I am aiming to lose weight. Taking myself from 15 stone down to 13 stone over the course of this year.

I won’t be tracking the first too closely, but for the second I will. In the first 3 weeks of this year I have so far done a very good run on this, with only drinking at the weekend (granted this is partly due to long working hours – 14/15 hour days and today is the first day since 2nd January I have done less than 5 hours work).

Have I noticed any difference? I really have, the mornings aren’t that different but are still different, slightly less lethargic (depending on exactly how much I have drunk) and a not quite falling asleep so early in the evenings.

The biggest difference I have seen however, is in my weight. Granted I have made some salads for lunch, however since the beginning of the year I have lost almost 3/4 stone. I am already the lightest now I have been in years and I am really happy. That’s the easier part though as that is simply from reducing empty calories from alcohol.

The next part is going to be harder, but let’s see. I look at it as I need to lose 1/2 stone each quarter so I am already well ahead.

In terms of savings it is going to be the same old same old. I want to push my net savings rate higher, I want it over 40%. If I am lucky enough to get a pay rise this year, I will add it into my GTP ISA monthly direct debit so that I build up even further.

To be honest, that is about it. Continue to track expenses and retirement funds. Grow them as much as possible, and continue to throw myself into my job that is helping to propel me to Financial Freedom. Oh and drink good coffee, wine and whisky!

Cheers!

Have you made any new years resolutions?

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Dec ’17 Go T’ Pub Performance

So I have to say I really am enjoying this portfolio. I really don’t have to think about it, it just keeps on going (a bit like some batteries). I’ll be honest the main time I check it more than about once a month is the run up to the auto purchase (to see if I need to add extra funds to make sure I can buy at least 18 units), or when I am expecting a dividend payment – still no sign of Decembers VWRL payout as yet…

For the full details over all of the portfolios as a summary please refer to the full month end report – this is specifically looking at what has happened on the Go T’ Pub portfolio only.

So the key bullet points for this month:

  • New Funds added. As always, the regular contribution of £1,100 has gone in however I added an addition £40 to this, taking it up to £1,140 so that I was certain to get 18 VWRL units
  • This month the portfolio threw out nothing 😦
  • No withdrawal was made
  • Left over cash from the previous purchases was left in

So all in all a very quiet month, no drama, no real action (other than the little extra funds that came out of rainy day savings).

Overall performance: The starting value was £13,025.79, with £1,140 in new funds added, and £0 withdrawals, meaning total starting value was £14,165.79. We finished the month on £14,557.75 so the total performance across the whole portfolio was 2.77%. I can most definitely live with that! The challenge is that VWRL seems to be getting more and more expensive, and soon I fear I won’t be able to add enough to secure 18 units each month… unless we get a drop. Oh well, that is life I guess!

So, lets get into the detail…..

VWRL ETF

So the standard units were purchased – a further 18 units purchased at £63.28 per unit, making the average cost per unit of £61.27 So it just keeps ticking along and increasing the number of units which all helps!

So – how does this now look as the graph data slowly builds up?

201712gtpub

A clear gap is starting to open up already between contributions and stock value – although to clarify this is only the VWRL numbers. That is still ticking up nicely and showing a gap already, however as soon as the next dip comes that will quickly get reversed, but will at least allow me to buy more units – a mixed blessing.

Cash vs. Investment Trust

So for me this was the more interesting part of the overall approach – I transferred 50% of my last remaining cash ISA over to an IT and will be tracking the two together to see how things perform. Remember – you really, REALLY shouldn’t do this. Keep cash on hand, be able to sleep knowing your bills would be covered etc.

So, how is it looking?

Cash Now stands at £5,127.18
S&S ISA IT Now stands at £5,377.75

Another whole 4p from cash. I can’t believe how well that is doing ;-). Seems CTY had a major push, and with last months dividend reinvested that also helps the gap push further ahead. If it remains like this, it means I could cope with an almost 5% drop in the value of CTY and still have the same value as the cash ISA. I won’t be truly happy until I can cope with at least a 30% drop but that feels like it is some way off.

How does the rollercoaster look now? Well, very much like this:

201712cashvsstock

Wowser – someone really did get into the party move over Christmas!

Conclusion

It wasn’t just me who had a rather good Christmas, seems the GTP ISA also did! In a relatively short period of time the ISA is almost at the £15k mark, definitely not something to be sniffed at!

I am also tempted, when I have the spare cash, to chuck some money in to a “active investment” pot. Basically shove in say £3,000 and then buy chosen stocks, reinvest dividends in them, and see if I can boost my performance and see where I end – but that is for another day!

Dec ’17 Performance

So the month has ended and the festivities have finished, the grim reality of the workplace is back in full swing again (and more), and so its time to take stock of the performance across my portfolio see how soon I will be able to escape, and compare it to the usual index of choice. This enables me to see how I am doing. As I covered in my “How I measure performance” – basically I take the value of the portfolio at the end of last month, add on any contributions for the month, and that was my starting value. End value is the value at the end of the reporting period. Simples 🙂

So, performance wise in December, I failed to keep tracking each week so it is a bit of a surprise towards the end of the month, so let us have a look at what has happened….

Portfolio Performance Notes
Company Pension 1.55% No income generated as all funds are in growth or reinvested
Personal Pension 0.93% No income generated as all funds are in growth or reinvested
ISA 1 0.92% No income generated as all funds are in growth or reinvested
ISA 2 0.53% The performance does not include the income that was paid out into my account, and was another very good month of payouts!
ISA 3 2.49% Although dividends are paid out, they remain in the ISA wrapper, and will get reinvested for growth. The performance figure includes both the Capital growth, and also income received which will get reinvested.
ISA 4 2.77% Go T’ Pub ISA
FTSE-100 2.68% This excludes any dividends
FTSE-250 1.07% This excludes any dividends
FTSE-All 4.66% This excludes any dividends
S&P500 0.98% This excludes any dividends
Dow Jones 1.84% This excludes any dividends
VWRL 1.81%
VHYL 1.67%
GBP/USD -0.03% This was taken on the spot rate on the close of the last day of the month. Going forwards I will pick up the exchange rate from www.xe.com for consistency and real life 🙂

So overall not too bad a month – ISA2 continues to be the laggard here, but then I am taking an income from this so it’s not surprising that it didn’t have such a good performance.

All in I can’t really grumble at those numbers, but it always helps to take a view of the bigger picture, so once again a pretty graph time!

Dec17

So a nominal £10,000 invested in all the vehicles above (I have ignored indexes as I would need to track these individually via a tracker rather than just where they are, the above is things you could technically buy).

So in first place, by a reasonable amount, is my actively managed ISA. That is satisfying, although I expect performance to start to lag as I move more into trackers and Investment Trusts to balance the size. And who knows, have I just been lucky?

Second, by a whisker (although maybe by a whisky would be better, but I digress), is my personal pension, managed by my IFA. Yup, even when you take in all the charges associated, my IFA still isn’t doing too bad – although maybe I won’t tell them that….

In third place, VWRL. Looks like maybe a good choice for the Go T’ Pub ISA after all!

So I am sure some may ask is my IFA just a closet tracker for VWRL? Well I can happily say no as I know what is in it. VWRL has approximately 50% in North America, my pension has about 20% – the differences go on.

All in all my total retirement pot grew by close to 2% for the month, including additional funds, so not too bad.

How was your final month of 2017?

Dec ’17 Income and Expenses

So December finished early for me as I got paid before the Christmas break – great for Christmas, painful for January! The remnants from November hit as expected, however because of when I collected some of the food, some of the Christmas food will hit me in January rather than this month which makes it a little less painful in that sense. Ultimately I still have to pay for it though!

Income

So all steady on the western front here. Same old salary dropped in and a reasonable income from my other half’s ISA. Steady as she goes. Really isn’t anything more to say about this given my lack of other income streams.

Expenses

So, lets take a look at this, should be good for a giggle if nothing else!

Item Notes Amount
Things I choose not to avoid* Mortgage, Insurance, shared bills etc. – yes, we could move somewhere cheaper, not have insurance, reduce our bills a bit and so on, but we are where we are. 37%
Groceries All the food and other stuff needed for home 6%
Alcohol for home Home alcohol consumption only 0%
Bicycles / Car related Any costs related to either the bikes or the car 1%
Alcohol Out Generally, its the pub…. 0%
Eating Out I include purchased lunches in this as well as meals out etc. 2%
Other My catch all for anything I may have missed…. 6%
Holidays Any spending related to holidays, flights etc. 6%
Savings Anything left over! This includes money into ISAs, mortgage payments and non relief pension contributions. My company pension comes out before it hits my bank account so isn’t included, nor do I include the “top up” of money when my money goes into my personal pension (i.e. I put in £100, I register it as £100, not the £125 that gets credited in my pension) 42%

So there we have it. My general “don’t do anything about” stuff is steady helped by a reduced transport budget.

Alcohol, both at home and out was minuscule this month as it’s the festive season so a number of the evenings out were covered on expenses – what a nice result and some cheer! The rest was stuff I bought in previous sales etc.

Groceries were higher than normal, but it is the run up to Christmas.

Other was the catch from November so not unexpected.

Holidays – I booked a couple of nights in a hotel for a break and some rest, and did me the world of good. Unplanned but never mind.

Savings rate was an incredible 42% – I ran down some of my cash flow fund but my investments remain ongoing, and in fact I put a little extra into the GTP ISA (more on that in the update to come).

So overall I am really happy with the strong finish to the year!

How was your Christmas break, did you manage to keep control of things in December?!

Blink and you miss it….

So just a short post for today, but something of note! Ok this should have been posted on the 18th November, the anniversary of my first ever post, but that didn’t happen with all the excitement in November. So this means its almost an end of year post, maybe something I should continue to do in the future, who knows!

I find this slightly surreal to be sitting here and typing this, but FiL is now officially 13 months old…

With the exception of the last couple of months (for various reasons) I have managed to keep a steady rate of posts, and some interesting stats:

  • I’ve posted a grand total of 80 posts – so just over 6 a month on average – I need to push to keep that up!
  • I’ve had over 10,000 views
  • Weenie has been the most prolific with the comments (63 to be exact!)
  • Where to start has strangely been the most commented on page (I clearly need to write more interesting / thought provoking articles!)

So that’s the blog side of things, what about other things that have happened since I started the blog? I am going to ignore anything around what has happened in the wider world (politics, economics etc.) as there is so much.

Financials

Retirement funds (ISA and Pensions). I look at my numbers and I simply cannot believe I am where I am. Total funds are up approximately 50% over the course of the year – the growth of this over the year has been phenomenal. I have knocked 11 months off the date that I would hit my target number already….. ok I am still not hitting my 2025 date yet, but I have another 8 years still, and a couple of good bonuses and I should be hitting it…

Overall performance has been fantastic – it is continuing to increase and go up.

I have only recently started to forecast my liquid total for 2025 so I will see how that goes over time…

I have still not knocked a year off the mortgage sadly, however it is still ahead of schedule to be paid off. I am still making an effort each month to knock down a little extra each month so it is going the right way but still remains the biggest challenge to my FIRE dreams.

The income generated by my ISAs continues to increase year on year and now is starting to generate some significant funds – as the saying goes… I’m loving it!

Work

I think it has also been an ok year work wise – I am ending the year in a great work position – new role, and another further role to help me go for promotion. Sadly it looks like the promotion is likely going to happen in 2020 as the earliest date. This doesn’t fill me with great confidence sadly but, it’s work and I will continue to put my all into it

 

Nov ’17 Go T’ Pub Performance

So November is over, and with everything going on, having this on autopilot has been absolutely fantastic. The only time I really remember is when I see the £1,100 going out of my account!

For the full details over all of the portfolios as a summary please refer to the full month end report – this is specifically looking at what has happened on the Go T’ Pub portfolio only.

So the key bullet points for this month:

  • New Funds added. As always, the regular contribution of £1,100 has gone in
  • This month the portfolio threw out £52.20 from CTY – which will automatically reinvest and buy more. Compare that to my cash interest of approx. 4p (or 12p if I scale up to per quarter…) – it shows the difference that you get in income, for the hit in volatility
  • No withdrawal was made
  • Left over cash from the previous purchases was left in

So continue to ticking along – the second payment from CTY, so that’s over £100 now which is being reinvested, helping to offset any potential downturn that is bound to happen – this is my emergency fund after all!

Overall performance: The starting value was £12,002.06, with £1,100 in new funds added, and £0 withdrawals, meaning total starting value was £13,102.06. We finished the month on £13,025.79, so the total performance across the whole portfolio was -0.58%. Ok it’s down in percentage terms, but compared to where it was last month I am still up in actual cash terms due to my contributions.

VWRL ETF

So the standard units were purchased – a further 18 units purchased at £62.80 per unit, making the average cost per unit of £60.97 So it just keeps ticking along and increasing the number of units which all helps!

So – how does this now look as the graph data slowly builds up?

201711gtpub

LOOK AT THAT IMAGE!!!! Yes it really is time to party… a clear gap between value and contributions…. that’s magic! Ok before I get too excited, the value is really small, and we haven’t really had any slump in prices as yet, but it is nice to see that after a (relatively) short term the value is above contributions. There is a reason most advice you see in printed material says you need to leave money in for 5 years or more… either way a very “back of fag packet” calculation of a 3% return is already giving me about £20 a month in income (3% of £8k divided by 12). Or… £60 a quarter, so a main course and a drink for the two of us in the local pub each quarter (this is London…). Not at all bad.

Cash vs. Investment Trust

So for me this was the more interesting part of the overall approach – I transferred 50% of my last remaining cash ISA over to an IT and will be tracking the two together to see how things perform. Remember – you really, REALLY shouldn’t do this. Keep cash on hand, be able to sleep knowing your bills would be covered etc.

So, how is it looking?

Cash Now stands at £5,127.14
S&S ISA IT Now stands at £5,200.78

Another whole 4p from cash. That’s 12p a quarter, compared to the £50+ from CTY… but I also know if I ever need to get at the cash, then the cash amount is guaranteed, CTY I will pay £12.50 (or whatever the current charge is), a few days wait to get at the funds, transfer etc. There is a difference.

So to keep with the pretty pictures, let’s see what that is looking like…

201711cashvsstock

So all this time on, not a real difference between the two, but look at the difference in volatility. Worth remembering if you don’t like a bumpy ride! I do question if it is worth leaving in the starting value as it is hidden behind the cash ISA value, but one day there may be a slight difference!

Conclusion

So the drip feeding into VWRL is showing the benefits of the fire and forget approach. It’s still very early days at present – I can’t wait to see what this will look like in another few years. Although £20 a month (fag packet) is not a lot, its only 6 months of investments, so if that becomes £40 a month over a full year, in a couple of years that is going to be fantastic.

The Cash Vs. Stock is proving an interesting ride still. I won’t be happy until the stocks have enough to drop 30% and still be above the cash value (assuming stocks remain where they are) to know that it was worth doing.

Nov ’17 Performance

So the month has ended (a little while ago, apologies for the tardy post), and so its time to take stock of the performance across my portfolio, and compare it to the usual index of choice. This enables me to see how I am doing. As I covered in my “How I measure performance” – basically I take the value of the portfolio at the end of last month, add on any contributions for the month, and that was my starting value. End value is the value at the end of the reporting period. Simples 🙂

So November was an unusual month in terms of performance as I checked the progress through the month so little compared to usual it has, for once, been an unknown to see how it has panned out..

So, what did November do to the portfolios?

Portfolio Performance Notes
Company Pension 0.60% No income generated as all funds are in growth or reinvested
Personal Pension 0.62% No income generated as all funds are in growth or reinvested
ISA 1 -0.48% No income generated as all funds are in growth or reinvested
ISA 2 -0.36% The performance does not include the income that was paid out into my account, but is covered by the income so really need to consider both in conjunction.
ISA 3 -1.47% Although dividends are paid out, they remain in the ISA wrapper, and will get reinvested for growth. The performance figure includes both the Capital growth, and also income received which will get reinvested.
ISA 4 -0.58% Go T’ Pub ISA
FTSE-100 -2.22% This excludes any dividends
FTSE-250 -1.36% This excludes any dividends
FTSE-All -2.04% This excludes any dividends
S&P500 2.81% This excludes any dividends
Dow Jones 3.83% This excludes any dividends
VWRL 0.12%
VHYL -0.20%
GBP/USD 1.89% This was taken on the spot rate on the close of the last day of the month. Going forwards I will pick up the exchange rate from www.xe.com for consistency and real life 🙂

So the US markets continue to go up and up and up – although this isn’t really reflected in the Go T’ Pub ISA. Despite the fact that everything is down performance wise, the actual £ amount is still going up so I can’t complain too much. Given the way December is going as well makes me think that there is a slight slump underway which means I can buy more for the same price!

So overall, how is this doing in a pretty graph?

Nov17Perf

So my self managed ISA is just holding in, but the pension my IFA manages is closing in fast. ISA 2 looks bad, but then if I add in all the income it has paid out so far this year then it wouldn’t look so bad… either way they are all up so I am happy!

Thinking about 2025… well I am still not there in my forecasts sadly but it hasn’t gone any further out, so that is something! I have also started to forecast what my liquid total (i.e. ISAs) will be on that date which is quite interesting, not a huge variety since then but a reasonable chunk of change in there. I would like to increase it by about 50% on what is forecast, but then if I hit that then I wouldn’t need my pension!

How was your November performance?