In the past my index portfolio consisted of both stock and bond ETFs. I used to follow the age – 10 rule for the bond part. So at 25, I would have 15% of my portfolio in bonds and 85% in stocks. However, I decided to remove bonds from my portfolio entirely. You can read my complete investor’s policy statement here.
I think that lifestyle is as important as money, when shooting for financial independence. Many people forget that and go straight for the euros. I’ll try here to elaborate my thoughts on the financial independence lifestyle that fits me at this moment.
It is a fact that real estate owners have a higher net worth than renters. This has not only to do with home owners paying down their mortgage. To get the same effect renters could just save and invest right? No. In practice that doesn’t happen. The reason is inflation.
You, my dear reader, are probably working on your financial independence. You have some leftover money in your budget, and are now wondering. Should I pay off debt or invest my money in the stock market or real estate?
This week I finally did it. I signed on the dotted line, and promised the bank that I will pay them back a crapload of money. I have been busy refinancing my apartment.
After all the considerations, spreadsheets, and thinking I knew this is a good idea. When you see the official paperwork, and the amount you owe, it’s a different feeling. Suddenly it seems like a lot of money. However, I guess a lot of people wouldn’t consider the mortgage I took out as a high mortgage.