I’ve updated my NW spreadsheet to include a NW tracker (historical too) and my real time portfolio allocation strategy and monitoring.
You’re obviously free to copy it out and personalize, or simply copy features and formulas you like.
Let’s take a look at each feature:
This sheet tracks NW month by month, getting data from the NW sheet. Each color represent a currency: red is for Euro, green for USD and purple for CHF. Note that each light grey row is a jump of 5K in that currency 🙂
Data here are reported since May 2016, to better appreciate progresses during blogging time 😉
This sheet tracks my NW since the beginning of time. You may be interested in following the evolution of my NW thru the series My Financial and Professional Story so you won’t ask why there’s a 3.5 years hole in the data. Here each light grey row represents a jump of 10K in that currency.
Portfolio Allocation and Strategy
This sheet is both defining my Portfolio allocation strategy (which is, btw, Work In progress) and my current real time assets allocation.
Disclaimer: I’m writing this article in September 2016. All references to columns, rows and cells are based on screenshots posted here. The underlying document will change over time but I don’t guarantee to keep information in this post in sync with the sheets evolution. Take the static images posted here as reference.
All values in this sheet are expressed in CHF.
The strategy is defined by column E. The 100% base is defined on the invested capital, which is not my NW. The invested capital is NW minus virtual money (credits), minus liabilities (debts), minus cash. The strategy defines which percentage of my invested capital is to be allocated on what.
Each row represent an asset category into which I want to allocate money. There are estates, bonds and stocks. Current coarse grain strategy is 15%, 25%, 60%. The stocks category is split in 3 index funds
- STOXX600, 27%
- S&P500, 20%
- S&P500 Tech Cap, 10%
Plus 3% of fun money to invest in random individual stocks. I usually hold some Hooli stocks, but I allow myself to play a little bit with random stocks. Never done so far though.
I added the actual ISINs and Tickers of my funds (ETFs). More on this on its own post in the investing series.
Note that there’s no target percent for cash. I model cash needs as few months of salary worth into an emergency fund (or a collection of bank accounts). At the moment I’ve set 30K CHF as cash cushion target (cell H8).
Column G measures current realtime allocation and it’s based on values from the NW sheet. Note that the Total here (cell G9) doesn’t correspond to my current NW, as I explained before.
The Current % column (column F) tracks my current allocation of each asset category against my total. As you can notice the percentages don’t necessary sum up to 100%. If it’s more than 100%, it means I have less cash than the target. If it’s less it means I have more cash than planned. Right now it’s 95.6%, in fact I have 51K of cash. I said in last monthly financial update I need cash these days for extra expenditures so it’s all ok.
Column H is the absolute target on each asset category, obtained by multiplying the target% (column E) by my total minus target cash.
Column I tells me if I need to invest more (positive value, red color) or less (negative value, green color) on that asset category, and it will drive rebalancing.
Here’s the full document embedded in this post. Click here to see it in Google Sheets
Well, I lied about strategy being monitored in real time. I update this NW document once per month, copying data from my personal (not shared) NW document which is in real time. Sorry for that 🙂