The ship that will not obey the helm will have to obey the rocks.
Publilius Syrus
This is my seventy-fifth monthly portfolio update. I complete this regular update to check progress against my goal.
Portfolio goal
My objective is to achieve and maintain a portfolio of at least $2,750,000 by 31 December 2024 or earlier. This should be capable of producing an annual income from total portfolio returns of about $94,800 (in 2023 dollars).
This portfolio objective is based on an assumed safe withdrawal rate of 3.45 per cent.
A secondary focus will be achieving the minimum equity target of $2,200,000.
Portfolio summary
| Vanguard Lifestrategy High Growth Fund | $733,047 |
| Vanguard Lifestrategy Growth Fund | $38,883 |
| Vanguard Lifestrategy Balanced Fund | $70,131 |
| Vanguard Diversified Bonds Fund | $86,372 |
| Vanguard Australian Shares ETF (VAS) | $370,609 |
| Vanguard International Shares ETF (VGS) | $485,700 |
| Betashares Australia 200 ETF (A200) | $281,250 |
| Telstra shares (TLS) | $2,217 |
| Insurance Australia Group shares (IAG) | $5,891 |
| NIB Holdings shares (NHF) | $9,120 |
| Gold ETF (GOLD.ASX) | $121,597 |
| Secured physical gold | $19,290 |
| Bitcoin | $386,363 |
| Raiz app (Aggressive portfolio) | $20,535 |
| Spaceship Voyager app (Index portfolio) | $3,266 |
| BrickX (P2P rental real estate) | $4,480 |
| Total portfolio value | $2,638,751 (+$30,840) |
Asset allocation
| Australian shares | 37.0% |
| Global shares | 31.5% |
| Emerging market shares | 1.5% |
| International small companies | 1.9% |
| Total international shares | 34.9% |
| Total shares | 71.9% (-8.1%) |
| Total property securities | 0.2% (+0.2%) |
| Australian bonds | 2.4% |
| International bonds | 5.5% |
| Total bonds | 7.9% (+2.9%) |
| Gold | 5.3% |
| Bitcoin | 14.6% |
| Gold and alternatives | 20.0 (+5.0%) |
Presented visually, the chart below is a high-level view of the current asset allocation of the portfolio.
Comments
This month the portfolio grew slowly, expanding in value around $31,000 or approximately 1.2 per cent.
The growth was primarily driven by an increase in the value of international equities, and a continued rise in the price of Bitcoin.
Global equities increases in value by around $27,000, or 3.7 per cent over the month. By constrast, Bitcoin holdings increased by around 7.5 per cent. Australian equities fell slightly over the month, by around 2.6 per cent.
This has all left the overall portfolio above its target for last year.
Amidst rising yields globally, the value of bond holdings continued to fall, decreasing by 1.8 per cent. The value of the gold component of the portfolio also was reduced, falling around 1.2 per cent.
Continue reading “Monthly Portfolio Report – February 2023”