söndag 14 februari 2016

The cost of work




How much does it cost you to work?

Perhaps a somewhat strange question, but please allow me a few lines to explain. If the aim is to become financially "free", i.e. being able to live out of a passive income and retire* before the official retirement age, we have to factor in the cost of actually working. Sure, net effect is positive, but in my case there are a few cost items I have due to working which I would otherwise not have of would be significantly different; a few examples:

  • Car - we would will not need two cars if when I retire*
  • Work day lunch
  • Work clothes
  • Etc.
In addition to the above we have some softer and harder to quantify financially factors to consider as a consequence of having a "normal" job:
  • Time away from family
  • Stress level affecting health
  • Less time/energy to exercise, causing a medium/long term health risk
  • Etc.
When retiring* there would of course be other activities also generating costs, but I would be in much better position to control these and ensure that e.g. food is healthy, that I get enough exercise etc.

*) I keep adding a start after each time I mention the word "retire". This should probably be described in a separate post in some length, but what I mean is that 

  • I have enough financial assets so that I with a 4% withdrawal can finance our cost of living
  • I quit my full time job
  • I might do some part time work on a contract basis every now and then (because I want to, not because I have to)
So, with this said: One action coming out of this is for me to calculate the cost of work (at least the parts which I can determine financially) and see what that does to my financial freedom calculation.

fredag 12 februari 2016

Shares to buy end of Q1

I do not have any money "available" for investing at the moment and also try to limit my selling and buying to a quarterly rhytm.

Assuming I have money to invest I am looking at these shares for purhcase at end of quarter 1:

TeliaSonera 
I will buy if < 40 SEK / share (at the time of writing 37.79).

In short this is a Nordic telcom company with high dividend (> 7% with current share price and forecasted dividend). Yes, a number of scandals last few years due to dodgy deals in eastern countries, but current management is cleaning up.

SSAB B
I will buy if < 20 SEK / share (at the time of writing 18.70).

In short this is a Swedish quality steel maker, which has suffered termendously as most (all?) other commodity companies. After today's 2015-Q4/annual report the share went up with almost 17%(!), however from a very low basis when looking at the share price over last few years.

Volvo B
I will buy if < 80 SEK / share (at the time of writing 80.05).

This is the truck and industrial equipment Volvo, not the personal vehicle one (which was sold to Ford many years ago and then to Geely a few years back).
I can't really put my finger on what exactly it is that I like with this company, but I have for a long time felt like owning a few shares in this company and the share rice has with a few exception been going between 80 - 100 SEK / share...

Perhaps the reason behind my love for this company is one on the coolest commercial films ever.
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