For a moment, nothing happened. Then after a second or so, nothing continued to happen.
Douglas Adams, The Hitchhiker’s Guide to the Galaxy
This is my seventy-eighth 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 | $759,139 |
| Vanguard Lifestrategy Growth Fund | $40,104 |
| Vanguard Lifestrategy Balanced Fund | $72,039 |
| Vanguard Diversified Bonds Fund | $87,773 |
| Vanguard Australian Shares ETF (VAS) | $369,961 |
| Vanguard International Shares ETF (VGS) | $565,690 |
| Betashares Australia 200 ETF (A200) | $275,870 |
| Telstra shares (TLS) | $2,323 |
| Insurance Australia Group shares (IAG) | $6,563 |
| NIB Holdings shares (NHF) | $10,152 |
| Gold ETF (GOLD.ASX) | $136,225 |
| Secured physical gold | $21,550 |
| Bitcoin | $465,270 |
| Raiz app (Aggressive portfolio) | $20,727 |
| Spaceship Voyager app (Index portfolio) | $3,481 |
| BrickX (P2P rental real estate) | $4,484 |
| Total portfolio value | $2,841,351 (-$14,754) |
Asset allocation
| Australian shares | 34.6% |
| Global shares | 32.5% |
| Emerging market shares | 1.5% |
| International small companies | 1.8% |
| Total international shares | 35.8% |
| Total shares | 70.4% (-9.6%) |
| Total property securities | 0.2% (+0.2%) |
| Australian bonds | 2.3% |
| International bonds | 5.2% |
| Total bonds | 7.5% (+2.5%) |
| Gold | 5.6% |
| Bitcoin | 16.4% |
| Gold and alternatives | 21.9% (+6.9%) |
Presented visually, the pie chart below is a high-level view of the current asset allocation of the portfolio.
Comments
This month the financial independence portfolio saw only a small movement, a slight decline of 0.5 per cent, or around $15,000.
This means the portfolio continues to sit at nearly $100,000 above the target portfolio goal, albeit with a composition which is still significantly different from the final target allocation planned.
Over the month the portfolio has experienced gusts in either direction, with international shares adding to portfolio performance, but with the price of Bitcoin falling slightly, resulting in the muted portfolio headine number.
Over the month international shares experienced growth of around 2.0 per cent, while Australian shares fell in value around 2.6 per cent. The value of Bitcoin holdings fell around 5 per cent.
Continue reading “Monthly Portfolio Report – May 2023”