And as promised, now I’ll dig more into each category of assets. I do add the chart with detail below.
We still do have too much cash, but I try to continuously retransfer it into other assets. I do differentiate between two “cash” types – operational reserve (to have aroun EUR 8k) on current accounts and then half year need on saving accounts (around EUR 21k). At the moment we do hold more. Nevertheless, I plan to purchase another rental property, so I will need some cash for initial deposit.
- Mid-term investments
Here I consider more categories, so let’s structure it a bit:
– Building savings – state-supported saving, almost 4% p.a. for 6 years, guaranteed. After those 6 year I plan to pay with this amount part of home mortgage.
– P2P – as there was a hype, I wanted to try this category out. We had there even more money, but at the end the average revenue was quite low. I combined mintos.com and zonky.cz. I left mintos completely (will provide detail descritpion P2P later in another blog) and I kept zonky.cz. Nevertheless the average revenue is around 4% p.a. and that is too low. So my goal is to keep there just small reserve.
- Long-term investments
Classics. ETFs, pension funds of all of us (me, wife & 2 years old son). I boost this category as plan to have there around EUR 500k – EUR 800k.
Not the investments actually, but it is something what keeps the cash “inside it”. If I decided to FIRE, I would definitely change at least one of the vehicles – or sell it.
Our house, value minus debt
- Weekend house
That is my country-side home. It has 2 purposes – fully utilize as a second home and also as a collateral for 2 rental properties.
- Property – land for sale
I purchase smaller land last year and it looks I will be able to sell it this one (contracts signed, keep fingers crossed!). If so, I will reallocate gained cash from this into a) home, b) long-term investments and c) probably third rental property.
- Property – rental flat no. 1
Purchase completed this May. The value is show as value minus debt. As I use 100% mortgage on this (collateral of 20% is my weekend house), the value is almost 0 round now. But I expect monthly growth of real value aroun EUR 600.
I will share detail per category, approach why I do it and the historical development as well, all in upcoming posts!