Monday, August 8, 2016

Summary of July 2016

Summary, July, 2016

I must admit that I was not happy when I put together this summary. I thought that my companies had developed much better than what was the case once I had it down in black on white on paper. Yet again my German banks keep disappointing me which they have been doing now for four years already. I have kept pushing more and more money into them and they keep falling lower and lower. It starts to be very frustrating and I am very close to create the rule "no more money into German banks".

Oh, and this summary covers the last two months developments.

I have already written enough updates concerning the work in my new company so I shall say no more of that. In my old company we have still not managed to stabilise the situation but there is money coming in so I hope things will get sorted out.

My wife have still not managed to get a job but now she is gone for two weeks to do some volunteer job to try to get one foot in the door via this approach. I hope that it will work out as she wants. For me this means that I can push work even one step further to make sure that I build up the needed technical knowledge even faster.

Oh, here in the UK there is something called Help to Build ISA. Me and my wife started up that which drained 2,400 GBP the first month but in the future we can only pay in 400 GBP per month. Still, as soon as you have over 1600 GBP (per person) then the government push in 25% for you to buy your first property here in the UK. So in the end of September me and my wife will have the value of 4,000 GBP for buying a house. In the UK you need to push in around 10% so we could buy a "house" to the value of 40,000 GBP and each month that value increases by 5,000 GBP. The maximum value that the UK government will pay out is 3,000 GBP which means you must have saved 9,000 GBP. If both my wife and I would reach this then we could buy a house for 240,000 GBP. It will however take 3.5 years to get there and I doubt we will wait for that long and hopefully we will buy a cheaper house also...

The PAYE taxation system in the UK should also be mentioned. This means that you only start to pay tax on your salary after you have reached certain tax levels:

Band Taxable income Tax rate
Personal Allowance Up to £11,000 0%
Basic rate £11,001 to £43,000 20%
Higher rate £43,001 to £150,000 40%
Additional rate over £150,000 45%

What this means is that you do not pay any taxes until your salary is above the different levels. To exemplify this. Let us assume that you have 3,000 GBP brutto. This means that your first three salaries you do not pay any taxes (you pay for health insurance though!). Meaning 9,000 GBP paid out to you. On your fourth salary you pay no taxes on 2,000 GBP and on 1,000 GBP you pay 20% in taxes. Each following month you continue to pay the 20% in taxes. Very interesting system! If you are a high earner that will end up in the 40% or 45% tax rate then you better have some control of your spending so that you can survive also those final months of the year.

I have still not managed to get the stock ISA up and running but it will be high priority for the coming week especially since I am now sitting with a surprisingly large quantity of cash on my account.

For the previous summary please visit Summary of May 2016 and here you can see my stock portfolio as it is.

Invested, Current, July, 2016

The total invested value is now up at: 85,766 € including a realised loss of -3,757 €.  I pushed in some money into Commerzbank and I pushed money into Company A.

Portfolio, Current, July, 2016

The value of the portfolio is today: 77,147 € and I now have around 311 € in cash on the account. The combined unrealised and realised loss is now at: -8,619 € (-10%) which is bad.

Me, DAX, July, 2016

DAX jumped up a little, however there was a large dip due to Brexit in the middle of this period, and is now up at 10,228 points which means +1.2% which clearly beats my own +0.2%.

Conclusion: I keep loosing to DAX and yes it was a two months of dividends but still... I lost fair and square. The only "joy" is that energy companies seems to start to recover but let us so if that is really true or just temporary.

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