My ventures are not in one bottom trusted,
Nor to one place; nor is my whole estate
Upon the fortune of this present year
Therefore my merchandise makes me not sadShakespeare, The Merchant of Venice (1596)
This is my thirty-sixth portfolio update. I complete this update monthly to check my progress against my goals.
Portfolio goals
My objectives are to reach a portfolio of:
- $1 598 000 by 31 December 2020. This should produce a passive income of about $67 000 (Objective #1) – Achieved
- $1 980 000 by 31 July 2023, to produce a passive income equivalent to $83 000 (Objective #2)
Both of these are based on an expected average real return of 4.19 per cent, or a nominal return of 7.19 per cent, and are expressed in 2018 dollars.
Portfolio summary
- Vanguard Lifestrategy High Growth Fund – $797 618
- Vanguard Lifestrategy Growth Fund – $45 218
- Vanguard Lifestrategy Balanced Fund – $81 294
- Vanguard Diversified Bonds Fund – $109 367
- Vanguard Australian Shares ETF (VAS) – $158 769
- Vanguard International Shares ETF (VGS) – $28 471
- Betashares Australia 200 ETF (A200) – $268 114
- Telstra shares (TLS) – $2 057
- Insurance Australia Group shares (IAG) – $9 996
- NIB Holdings shares (NHF) – $8 100
- Gold ETF (GOLD.ASX) – $98 376
- Secured physical gold – $15 868
- Ratesetter (P2P lending) – $16 915
- Bitcoin – $128 630
- Raiz app (Aggressive portfolio) – $17 535
- Spaceship Voyager app (Index portfolio) – $2 377
- BrickX (P2P rental real estate) – $4 418
Total portfolio value: $1 793 753 (+$33 713)
Asset allocation
- Australian shares – 43.2% (1.8% under)
- Global shares – 22.9%
- Emerging markets shares – 2.4%
- International small companies – 3.2%
- Total international shares – 28.4% (1.6% under)
- Total shares – 71.6% (3.4% under)
- Total property securities – 0.2% (0.2% over)
- Australian bonds – 4.8%
- International bonds – 9.8%
- Total bonds – 14.6% (0.4% under)
- Gold – 6.4%
- Bitcoin – 7.2%
- Gold and alternatives – 13.5% (3.5% over)
Presented visually, below is a high-level view of the current asset allocation of the portfolio.
Comments
This month the value of the portfolio increased again by around $33 000 in total, building on the previous two months of growth.
The equity part of the portfolio has grown by around $50 000 to now reach over $1.25 million for the first time. This increase includes new contributions and the last part of the previous June distributions being ‘averaged into’ equity markets. The equity component of the portfolio has increased by around 40 per cent this calendar year.