2021 Financial Retrospective

There is no need for a better introduction that the title we have. This is the financial retrospective of this year. What went good? What went bad? What can we improve.

“We need to uncover better ways to improve and retrospectives can provide the solution.”

Ben Linders

And to have a good retrospective, we should check our Financial Goals Article (for 2021).

Financial Goals Check

DONE P2P GOAL: We did not invest in another P2P platform as expected in the beginning, but we reached a total profit of 141.70USD according to the platform. It is not the 10% return we were accepting, but it was very close and probably the fact that I neglected to do a rebalance sooner and had a lot of money not invested.

NOT DONEFOREX GOAL: We had a very good run at the end of December and the whole month of January, with the previous robot I was working on. But then the trouble started. The account went to less than 30% of the value. During the year I’ve tested multiple robots but nothing works. December was a bit better as I have my robot running at the moment. But I will not set a new goal in the next year.

DONEState Bonds Goal: This year’s goal was a deposit of 200USD into corporate bonds. This goal was a success as the initial deposit was of 300USD in Bonds ETFs. There will be an article explaining the deposit, that I failed to create until now. So this will be one of the goals for next year. Unfortunately, after the initial deposit, no other deposits were done and the investment didn’t perform spectacularly.

NOT DONEMortgage Goal: Again, we didn’t manage to save any money for this goal, due to the fact that our economies were always decimated by dentist interventions, job change, increase in taxes, and so on.

DONE Economy Goal: Put back in the economy buffer 2000USD (this is an addition to what we already contribute). This goal was archived by doing some “accountment” work. I don’t know if all of you are familiar with the economy game we play ( For the ones that are not, here is the link), but we saved there almost 1000USD, which were moved after the goal was completed in the Economy Account.

DONESTOCKS Goal: With over 650USD as a contribution only to the external market and another 650USD in the internal market, the account totals 3600USD. Our target was 2500USD. This goal is done!

DONEETFs Goal: was also a priority on our list for this year. We had a total contribution of 737USD, on both internal and external markets, and the account is worth 1100USD Unfortunately the return only totaled 92.7USD, which is a bit shy of the 10% I was targeting.

Portfolio Development 2021

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December 2020 – Asset Distribution
Retrospective
December 2020 – Asset Distribution
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December 2020 – Risk Distribution
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December 2021 – Risk Distribution

The portfolio is now at the maximum allocation, with a risk distribution more on MEDIUM. I would prefer next year to increase the allocation in Low-risk investments.

AssetDecember 2020DepositEnd PeriodGainGain %Increase %
Forex 1451.03 615711.67-1354.36-94%-51%
Crypto 789.83 301400.46580.6374%78%
Mutual Funds 1869.74 155.612044.5419.192%10%
P2P 1383.08 01468.3985.317%7%
Stocks I. 1135.9 656.752690.62897.9780%137%
Stocks E. 211.58 674906.6221.0410%329%
ETF 291.1 702.52 1086.3292.732% 274%
Bonds0300294.37-5.63-6% 94%
Gold 201434.730.734% 74%
Total 7232.24 3147.8810637.72337.585%49%
Asset Increase: Asset, Deposits, Realized Profit, Increase versus December 2020
AssetDecember 2020DepositEnd PeriodIncrease %
Economy Fund471.86 154.54626.433%
Emergency Fund4041.75 -20731968.69-52%
Total4513.59 -1918.522595.09-43%
Asset Increase: Asset, Deposits, Realized Profit, Increase versus December 2020

The reference for the conversation is 4.37 USDRON, and the fact that when I am doing my calculation I am transforming everything from EUR/USD to RON and then back to USD for you, some profits disappear on that conversation. But regardless of that and the massive loss from FOREX, the total gain is 337.58USD and an increase of 49% of the portfolio.

Like last year, we had the same problem with FOREX, so definitely in the next year, we will not prioritize this investment over anything. We still had some dental interventions and again repairing the old car, with expenses around 3000USD. But still, we managed to increase our positions. We are a bit slower than I expected on the road to F.I.R.E. but we are still going strong.

Last Words for the Year

Looking back at the financial realizations of this year, it’s certain I was not able to respect that many goals. It is a very nice feeling that we managed to increase our portfolio that much. But we didn’t respect the goals.

But another year has passed, and not all realizations are related to our accounts or portfolio. We had some nice realizations this year also:

  • My wife becomes a full-time software tester, with a pharmaceutical background. This is a big realization for her as she did it by herself and I am very proud to be her husband. She is a strong woman, probably stronger than me!
  • She nailed all the interviews she had and already changed two companies. And she is gaining more than her previous job in the pharmacy
  • Our kid started kindergarten and she loves it. She had a nice development, learn new things, and warmed up to kids
  • I had a project change, where I feel I can grow now and I really enjoy what I do. More than this, with the help of my manager I am steering my career to the management part of the job.
  • We finished our dental interventions so no more trips to the dentist! YEY!
  • We both had some surgical interventions and everything was fine but was a premier for us.
  • And many more small victories that contribute to our daily life

Now it’s time to say goodbye to this year, and welcome the new year!

Thank you all for being here with us and hope to see you in the next post soon!

Happy holidays and happy new year!

Disclaimer: I am not a financial consultant! All the information you find here are my decision, I have taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money and you can have losses.

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