I sold my condo in April 2018 to rent a room, so I could travel more. Click here for a recap on why on Earth I would do that.
Since then, I have kept a close watch on my nest egg.
Are you curious how my stock portfolio is performing compared to the real estate market?
Here are some numbers and transparency!
It has been 21 months since I sold my condo and invested my money into the stock market. I saved $20,000 CAD during this time, which is nothing close to my plan of saving $2000/month. However, my portfolio is now up $50,000 (including my savings) in this short time! But this is only a 18% increase.
Oops, missed all those gains, but hey it’s a balance of having fun in the present and planning for the future, right?
1. I hired a financial advisor that charged a 1% fee. He made me a very conservative portfolio at 60 equity/40 bonds. All the gains pretty much went to the fees. So I really didn’t “make” money until 6 months ago when I started investing myself.
2. I didn’t invest more money during the market downturn in December 2018. Missing out on potential gains.
3. I didn’t save even close to what I have planned (Goal of $42,000 vs. Reality of $20,000). Missing out on the compounding effect of investing for a longer period.
If I invested properly, with a higher weighting in equity (90/10, which it’s what I am doing now), the stock market would’ve returned 27%! When I compared that to my condo, it is a similar appreciation! (This is the crazy Toronto market, according to my realtor)
That means, by selling my condo and renting my room, and investing in the stock market, it would have gained a SIMILAR amount of *”appreciation” in this period.
But of course, we don’t really calculate appreciation this way. We don’t really make money until we sell. And it depends on your asset allocation in comparison to the specific real estate purchased and timing. But you get the point!
*2018- S&P 500 Index was down 6.24% , 2019 – returns 28.88%, 2020 – so far returns 4.43%. Average 27%. Higher when dividends are reinvested. Source
Even though I didn’t make the same gains (18% vs 27%), (but would have if I stuck to my saving goal), investing in the stock market did allow me the freedom to have travelled TWENTY-TWO times in this period!
I travelled so much I went to a travel conference!
Can I just live in Bali forever?
April/May 2018 – Bali for 3 weeks
May 2018 – Barbados for 3 days
June/July 2018 – Peru for 3 weeks
Climbing and Ziplining the Sacred Valley in Peru. Who is going to pay $500 for the bubble hotel when I can climb up for $99?
August/September – Nepal, Mount Everest Basecamp Hike
Oct 2018 – Swimming Holiday in Crete, Greece for one week
Taking a water break during swims
Oct 2018 – Chautauqua event, Financial Independence Retire Early week-long retreat in Greece
Oct – November 2018 – Mexico for a week of scuba diving and cenotes
November 2018 – Tony Robbins Unleash the Power Within Conference for 4 days
December 2018 – Maui, Hawaii for a week
I started this blog!
Janurary 2019 – Las Vegas for a weekend. Did the plane ride over Grand Canyon.
March 2019 – Ottawa for a weekend. WALKED, not skated, on the frozen Ottawa River.
April 2019 – Yosemite National Park Hike for 4 days
Can’t this more gorgeous? Yosemite?
May/June 2019 – Vietnam for 2 weeks
June 2019 – Travel Con Boston
July 2019 – Vipasanna Meditation for 10 days
September 2019 – Summit of Greatness in Ohio for 4 days
October 2019 – Santorini holiday and swim holiday for a week
Swimming in the volcanic waters of Santorini
November 2019 – Rise business conference in Charleston, South Carolina for 4 days
November 2019 – Miami for 2 days
November 2019 – New York for 3 days
December 2019 – Norway for a week during Chirstmas/New Year (stayed with a local friend)
Ah why do you have only 5 hours of sunlight in winter, Norway?
Jan/Feb 2020 – Chiang Mai for 3 weeks
Feb/March 2020 – Back to Bali for 2.5 weeks
March 2020 – San Francisco for 3 days
And many more trips to come!
This post is to show you that investing in index funds gave me more flexibility in travelling. I might have not “gained” as much appreciation compared to real estate, (mainly because I messed up and went a bit crazy jet-setting the world), but the experiences I have accumulated in these two years were priceless! Hey, I travelled TWENTY-TWO times! I met all the cool people, did all the things! Most importantly, I have learned a lot about life and about myself.
I wasn’t stuck in my mortgage, and I had extra cash to use for travel/ increase my saving rate.
But this type of lifestyle is not for everyone.
However, if you also believe that life is too short, that it’s important to live life to the fullest, but feel responsbile to also take care of your future, share this article with someone you think will find it useful!
WTK
February 15, 2020Hi Clover,
Nice update.
I think that the most important thing is to be happy in the things which you like to embark on. Life is short. No one knows what will happen the next moment. It makes more sense to live life to the fullest with the knowledge that the investment portfolio can last one for a lifetime (subject to flexible spending as per the existing generated dividends).
My two cents worth of views.
WTK
simplycloverliving
February 15, 2020Exactly! It’s important to have both!
Carlos
February 22, 2020Nice blog! Keep it up! Interesting investment story!
simplycloverliving
February 24, 2020Thanks so much Carlos!
Paul C
February 24, 2020My goodness Clover; I didn’t realize you traveled so much!
Living the dream, girl!
You still plan on doing the Jesse Itzler event this summer? I may wanna join ya!
This is amazing! Lets catch up soon…hope you are well.
simplycloverliving
February 24, 2020Yea and that doesn’t even include the 3 to 4 trips I take a month for work! That’s just vacations! I actually back out of the Everesting event! I don’t feel like I’m ready this year. But it will still be at the top of my bucket list though!