Financial independent, retiring early or FIRE as it is called for short, is a concept we have met over and over since we started this blog and began to read other blogs about personal finance. The concept is fairly simple – keep your expenses low and invest what you have left each month. Based on the articles we have read so far a rule of thumb is that you should save/invest at least 40% of your income every month. By living this way you will be able to live by passive income later in life and be able to retire early(ier). This is where we got very excited! Who wouldn’t love to be financially independent?
Who doesn’t love watching money fly into one’s account without touching a finger? It almost sounds too easy but that is why we love our dividend paying stocks. After pressing the buy-button there is nothing more to do than wait and keep an eye on what the next dividend payout ratio will be. Despite our delight in dividend paying stocks, we have multiple times discussed whether we fool ourselves returnwise, as we pay our taxes at an earlier stage compared to owning a stock that accumulates the value instead of paying it out.
It is now the start of a new month so how did our portfolio perform in September?
Writing our first portfolio post earlier in September (Our portfolio) inspired us to go on a little stock spending spree, so we were quite active in September and bought three new stocks. We bought Intel, Salesforce and Facebook shares, so that kinda bumped up our tech exposure. Lets hope that it will prove to have been a good idea. Below is our portfolio as it looked ultimo September.
To compare our return to the market we have chosen to benchmark it against the American index S&P500 and an European ETF tracking MSCI Europe. Lets just say it as it is. September was not too good for our investments compared to the rest of the stock market…