Irish Financial Independence & Personal Finance Podcast

April 2021 Portfolio Update

Monday 3rd May 2021

I turned 37 in April. As I blew out my birthday candles, I released I had nothing to wish for - I had everything I needed and was content with my life.

Contentment is an important aspect of the FIRE movement, and one which is often not mentioned. Often when blogging and podcasting, it is easy to focus on the exciting things about trying to become financially independent... in truth, 90% of the FIRE movement is simply good old fashioned hard work - jump out of bed, work hard, save hard and invest well. Rinse and repeat for 8-15 years and you should be somewhere close (assuming you can get your savings rate to over 50%)!

Contentment is important as well, because one is going to need that as a minimum to actually become financially independent. Resisting the urge to upgrade a phone, car or bigger house takes discipline, especially when you see friends and peers with the latest gadgets.

Contentment also extends to other aspects of the FIRE movement. In April, we were able to add €4,500 into our investment portfolio. This was done via a €4,000 pension contribution and €500 added to our emergency fund, which lives in my web development company. While we continue to build wealth in our pension and company, our personal financial situation is challenging at best.

We deliberately pay ourselves at the lower tax rate to avoid paying 50% tax - something which we have identified as a key component of our ability to become financially independent. It should be noted that we do have some income that we pay 50% tax on - such as income from our rental property and from affiliate commission, however this income isn't tied directly to our time. As we see it, working one hour and giving half of that income to the Revenue Department is simply an unfair deal.

Having three children and recently moving house has put some financial pressure on us over the last few months. We have had to make renovations and repairs in the new house, which has made keeping our budget difficult at best. However, as a family we know that we need to continue pushing ourselves to add to our portfolio and that our personal finances - while in a mess at the moment - will correct themselves with some good old fashioned discipline.

The numbers tell the full story. In the first four months of the year, the portfolio has grown from ~€125,000 to ~€151,000 (up €26k in 4 months). Obviously this has been helped by the sharemarket hitting all time highs, but even without that, our ability to continue to add regularly to our portfolio is the reason for majority of the growth.

Let’s jump over to the numbers for April:

Portfolio Report

Portfolio Summary (as at 30th April 2021)
Opening Balance €144,072.24
New Contributions €4,500.00
Portfolio Capital Gain + Income €2,704.95
Closing Balance €151,277.19

Monthly Portfolio Growth Report

Monthly Portfolio Growth Report
Capital Gain + Dividend Income from Equities €2,103.51
Real Estate Income €690.97
Peer to Peer Lending Income €5.14
Cryptocurrency Capital Gain -€94.67
Total Change €2,704.95

Portfolio Breakdown

The table below shows the breakdown of my portfolio into the various asset classes:

Portfolio Asset Breakdown (as at 30th April 2021)
Equities €75,766.99 50.08%
Real Estate €66,799.09 44.16%
Cryptocurrency €1,814.67 1.20%
Peer to Peer Lending €1,148.28 0.76%
Cash €5,748.16 3.80%
Total €151,277.19 100.00%

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