I first saw this post on Free Money Finance together with an interesting piece of information: the median American net worth is not even $69,000, down for the past few years due to the loss in house equity mainly. Most of this relative wealth is kept in the form of retirement accounts, real estate, and crippled by a large chunk of debt.
Today I am sharing how my wealth is divided, since I managed four currencies I have used a recent exchange rate and the quantities may vary, but will at least give you an idea of my foreign currency exposure.
My net worth is spread like this at the moment
Cash EUR 1.02%
Cash USD 1.81%
Cash GPB 3.40%
Cash GTQ (Guatemala) 6.62%
Real estate (4 countries) 45.13%
Other investments EUR 20.1%
Other investments GBP 44%
Other investments USD 7.05%
If I were as cool as Mochimac I would have a neat colorful pie chart (and 130 posts queued up, but that is another story..), unfortunately I take too long to put them up!
Debt: I owe a 0% credit card for one more month, rental deposits to my tenants, and mortgage on my UK property.
Cash: I usually never have that much cash on accounts but I just sold some cattle, have made a good little income online and on the blog, and have $10K ready to repay this 0% credit card next month. I also brought some additional money to Guatemala to finance the 90 acres land development. My normal cash reserves are around 1% of NW or under.
Retirement: Since I am already living off my investments, I do not have a targeted retirement fund or pension scheme that I contribute to. I believe in myself more than anyone to have my best interests at heart and moving country so much makes it complicated anyway to determine where to contribute to (real, not early or semi) retirement. Since I have worked in France and the UK I know I will be entitled to a tiny pension, in France today that would be the minimum benefit of 400 euros/month from age 65 if I remember correctly.
Other investments: I put anything non real estate or easy access cash account in here. There are classic investments in index funds, other investment funds, and non traditional investments such as the coconut farm and similar. Those investments are heavily weighted in GBP since the currency was trading around 1.05 EUR when I invested some three years ago, I have unloaded a bit when the London Olympics and other events brought the GBP back to 1.28 EUR and believe in the long term strength of the pound. If it doesn’t happen, I could still pay off my mortgage and invest in some more UK real estate.
Stuff that is not included in here:
After 6 months of daily house improvement, the little house in Guatemala has not seen it value updated.
I don’t include depreciating assets such as my motorcycle, the car and boat we just bought, and assets like old furniture or jewelery that has a certain value but would sell for 30% of its worth if turned into cash.
I also own half of a company that sells energy saving solutions, and once in a while get a check from my partner but do not consider that the company has a resell value worth mentioning in my net worth.
What about you? Where do you keep your wealth?
This post was featured on Debt Roundup