Welcome to my April 2020 Passive Income Update.
I have been dreading to write this update. As the novel coronavirus (COVID-19) continues to spread around the world, it will likely take the lives of millions of people as well as trigger an economic fallout and recession that will drive millions back into poverty. While the full impact of the pandemic can yet be predicted, the economic ramifications of it will likely erase development gains of multiple decades.
Given what the world is going through at the moment, I really don’t feel like writing about passive income or financial independence. So this month, there is no “happy” or “positive” update from my side. It’s just an update for my own record.
April 2020 Passive Income Update
My total passive income in March 2019:
– P2P lending: 415.89 EUR
– Real Estate Lending: 16.35 EUR
– ETF Dividends: 98.57 EUR
– Stock Photos/Videos: 320.00 EUR
TOTAL: 850.81 EUR (~919.30 USD)
P2P Lending & Real Estate Lending Update – April 2020
|Platform||Mar'19 Interest Income||Mar'19 XIRR||Total Investment|
|TOTAL||€ 850.81||€ 117,634.87|
|Mintos||€ 275.56||8.48%||€ 32,100.00|
|Twino||€ 37.72||8.91%||€ 7,500.00|
|Swaper||€ 102.61||11.08%||€ 9,000.00|
|Estateguru||€ 16.35||3.80%*||€ 5,000.00|
|Crowdestate||€ 0||0.0%*||€ 950.00|
|ETF Dividends||€ 98.57||€ 61,276.34|
|Shutterstock (Stock Video)||€ 320.00|
P2P & Real Estate Lending Overview – April 2020 Passive Income Update
As part of my April 2020 passive income update, here is a quick overview of passive income that I was earning this past month from four (4) P2P Lending and two (2) Real-Estate P2P Lending platforms that I am currently investing in.
The P2P Lending industry is at the moment going through what could mildly be called “rough times”. As I made some not so pleasant discoveries over the past days, I feel it is important to alert fellow investors. It turns out that some P2P lending platforms (Envestio & Kuetzal) might have been SCAMS and both have recently shut down. Police investigations are ongoing. Also, a platform that I have invested in (Grupeer) has suspended all payments to investors stating the state of emergency in the European Union as a formal reason, which is very alarming.
More than ever before, I am reminding myself that I should only invest what I can afford to lose. The P2P lending market is a high-risk investment form that is to a large extend unregulated.
The effects of COVID-19 on people, companies, and markets can yet be predicted. Still, I anticipate that a good chunk of loans will be paid back with a delay, that a higher percentage will default, and that some loan originators will struggle to fulfil their obligations to investors.
–Traded Funds (ETF) Update – March 2020 🥳
Even in times of crashing stock markets, I hold onto that my decision to start investing in the MSCI World ETF back in 2016 was one of the best decisions of my life. I am explaining details in my ETF portfolio post, but in a nutshell, I believe there is no better and more cost-effective way to save & invest long term (e.g. for retirement) while earning passive income from dividends.
Since I started investing in the MSCI World ETF in 2016, the value of the ETF has increased by 26.39% (despite the recent coronavirus-related shock in stock markets). The shares that I bought originally for 145.09 EUR a currently valued 164.73 EUR.
Coronavirus and my ETF portfolio
The spread of the Coronavirus (COVID-19) is severely affecting global economies and the 1600+ companies under the MSCI World are affected just as much. The UBS MSCI World that I have invested in since 2016 has dropped in value from 224 EUR to 164.73 EUR per ETF over the past 48 weeks. In total numbers, that means that my ETF portfolio (~69,000 EUR) has lost 10.25% of its value in March (-15.46 since beginning of the year).
In many ways, this looks like terrible news. But falling prices are a perfect opportunity to double down and to invest and buy more MSCI World ETF at a significantly lower price. In fact, in my most recent three monthly summaries I mentioned that I had been waiting for a good moment to buy ETFs at a lower price.
Seeing the plummeting value of the MSCI World ETF (UBS ETF (LU) MSCI World UCITS ETF (USD) A-dis), I bought an additional 10,000 EUR worth of shares in March (First 5k EUR tranche at 172 EUR/share and second 5k EUR tranche at 160EUR/share). I am currently waiting to see in which direction the market goes, but I am planning to invest another 5,000-10,000 EUR in MSCI World ETF shares over the coming weeks.
My 1,000 EUR monthly ETF savings plan
My 1,000 EUR monthly ETF savings plan which I talked about in my January Blog Post, runs in the background and keeps buying MSCI World ETFs worth 1,000 EUR on the first of every month. More about my ETF savings plan and why it was such a great idea to go back to an automated saving plan in this blog post.
That’s it for my April 2020 Passive Income Update! If you are interested, please follow my journey on my Facebook page Financial Freedom Journey for more frequent updates. And as always: If you have any questions or comments, please pop them in the comment section below. Or get in touch via Facebook or Email.
Stay safe, stay healthy, and please stay at home,