Hi RIP friends,
This is an ultra-short post on May 2019 RIP finances (spoiler: it’s been a shitty month) and some personal updates.
First: I’m alive 🙂
Saying that because quite a few people reached me out to check if everything is good because “I didn’t see new posts for a while…” I’m alive, doing good, facing turbo-life-changing decisions all at once.
I’ll be crystal clear in few months. I can’t be right now. Lesson learned: even though your company may be fine with people seeking FIRE (and Hooli definitely is, we even have an internal mailing lists for Mustachians), having EVERYONE know who you are and potentially read your blog makes sharing personal things much harder. As I said, I’ll be shockingly clear in few months.
Teaser trailer: I’m considering leaving Hooli soon (mild shock 😮 ) and we’re discussing what could be our next step? Another Tech Giant? As soon as I discussed that with friends in the industry I got contacted by both Pineapple and Smithereens (Loved that Black Mirror Episode! Actually liked Striking Vipers too. It would have made a good grammar joke if I liked the Ashely too too but I didn’t. But I made the joke anyway, sorry 😀 ).
I’m not ready for this kind of move right now, I’m in a certified medical burnout state and need time to recover. I’m currently disgusted with software engineering at Giant Tech Corp level. I’m a simple 42 years old software engineer guy, I still like algorithms, creativity, mastery, and f***ing autonomy.
If it’s not another Tech Giant, then what? We’re not FI, not in Switzerland of course. If we want to stay here I need to swallow that Pineapple… or join a startup or whatever else in the field that – at the moment – I want to take a break from.
Else? Moving back to Fascitaly? Become a full time blogger / financial advisor / financial coach? Revolutionize the education system? Start my startup? Start a coworking space like MMM and Mr1500?? Jump into politics and fill the chasm in the Italian political scene, waiting for someone to take it? Write full time, not just about finance?
In the meantime my wife is finally finding her vocation, that sets constraints on what/where/when. And daughter is growing, which sets constraints on time/options/opportunities.
Real shit is: if you’re young, don’t waste your time. My midlife crisis might resolve in “there’s no way you can do anything great once you’re 40 with a family“, and then swallow that fucking pineapple. And I shouldn’t probably even say that, because my dear friends at pineapple are reading my blog too 🙂
I’m still fighting though, but if you’re 20something don’t waste your fucking time, go binge watching GaryVee videos and do shits 16 hours per day. It will get orders of magnitudes harder at my age.
Anyway, thank you all for the support and warmth received during last few weeks 🙂
I’ll be more open about this process in the near future.
Ok, back to financial update… what?
“RIP, nobody gives a shit…”
Hey, it’s not fair, that’s my accountability method, now you have to listen to my shit!
“Ok, be quick, please. Are you a millionaire in EURO?”
No way, it’s been a shitty month as I said 🙁
Full Net Worth document is available as always on Google Drive.
As you can see, Mr Market went south a bit, after 4 glorious months (Jan-Apr 2019), which happened after 3 roller coaster months (Oct-Dec 2018). Since October 2018 I’ve experienced so many ups and downs that I’m getting used to it. The year 2019 is still overall positive though.
So I’m not a EURmillionaire, let’s hope for a normal June at least. Expecting extra income thanks to stocks vesting. Dividends will come too, but they’re factored in current assets’ prices. Anyway, if nothing bad happens we can break the final two commas door in June!
“What about British Pounds?”
Oh come on, who the hell cares? Anyway, give it some times and the mountain will come to Muhammad 🙂
Cashflowwise, it’s been a (relative) low income month, but a low expenses one too. Not bad for an anonymous May.
Still 9.3k CHF saved, even though the NW delta in CHF is -41k, which implies a net loss of -50k CHF! It’s not all market driven, it’s also a month where the Swiss Franc got 2% stronger than both EUR and USD. Losses in EUR (-16k) are more contained.
Anyway, the risk here is that saving/spending decisions get impacted by these huge rises and falls.
“Uhm… today we lost 10k, should I buy these M-Budget bananas or get the bio ones? Oh, fuck it, it doesn’t make a dent, let’s buy the Ultra-Bio ones for 3x the price!”
“Uhm… today we gained 10k from investments, should I change my 6 years old low tier (back then) desktop computer purchased with 15x Migros Electronics coupons? Ooooh fuck it, of course I am! I got 10k today from Mr Market!”
Which is the worst you can do! Ups and downs sum up to much less than their total volatility! Just stay the course!
“But RIP, your desktop PC really sucks, please buy a new one…”
Yes, of course. I just got the yearly 11x M-Electronics coupon, now I just need to wait for 20-50% special daily discounts and I’ll do it 🙂
Total income: 13.5k CHF, worst 2019 month so far. Expenses 4.2k CHF: very good, but bills are coming next months… Saving rate 69% (~75% so far in 2019), definitely not bad.
FIRE Metrics… oh, cmon, who gives a crap?
Some financial (and more) facts of the month, in chronological order
A couple of Trump tweets about US-China (and Mexico) tariffs war sent the markets to thrash. A couple of tweets. By the end of first week of May NW delta was Zero.
No more devaluating my Milan crappy apartment by 1k EUR per month. I’ve got 2 new offers for 70k EUR, I guess 60k is a good conservative evaluation. Still these potential buyers can’t get a mortgage though. There are 3 pending offers now… at first I suspected my Italian realtor was trolling me, then he showed real offers signed. I hope one of those desperate guys will get a mortgage!
Decided to subscribe to Breaking Italy Club on Patreon. Breaking Italy is one of my favorite Italian YT channel and I love the project. I’m supporting it with 10 USD/Month. It’s my first time, I’m not usually a “subscription guy” but I decided I really want to support the project and get in touch with the community behind.
Second week of May even shittier from Mr Market perspective. So I decided to invest 5k CHF into Emerging Markets (EIMI). I had last two months worth of “investable amount” (2.5k CHF per month) sitting on my IB account so I invested it all in EIMI: 492 shares at 27.05 USD/Share. Fun fact: I risked fat fingering while purchasing EIMI! I initially selected SELL instead of BUY. Luckily the order didn’t get fulfilled immediately.
Federal taxes (bundessteuer) for year 2016 final calculation arrived! It’s in line with what I declared, which is better than I expected: I expected a correction. Now I’m waiting for city and cantonal taxes (Staats- und Gemeindesteuern) final calculation. If it’s consistent with Federal taxes, I might receive 10.2k CHF back instead of the accounted 8.9k CHF. It’s a 1.3k windfall I won’t mind 🙂
Before you scream “Cheater! Fraud!” let me explain what happened. At the time of tax declaration ICTax didn’t list all the “virtual dividends” for my ETFs. Some of them were “not ready yet”, so I had to file taxes with the knowledge I had at that time, i.e. my accumulating ETFs shared no profits. I was expecting a correction but it didn’t happen (on federal tax level). Since city and canton taxes are just linear function of federal taxes I don’t expect the correction to take place now. My 2017 taxes carry the same “problem”, even bigger in magnitude… Maybe accumulating ETFs still have an edge over distributing ones after all 😀
Since I want to accumulate more cash, I suspended my monthly 2.5k CHF transfer from PostFinance to InteractiveBrokers for now.
That’s more or less it, from financial point of view.
I know, I’m behind with my ETF List, will fix that later this year.
How was your May?