If you can look into the seeds of time

And say which grain will grow, and which will not

Speak then to me.

Shakespeare, Macbeth, Act I, Scene 3

This is my seventy-ninth 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	$769,333
Vanguard Lifestrategy Growth Fund	$40,487
Vanguard Lifestrategy Balanced Fund	$72,451
Vanguard Diversified Bonds Fund	$87,427
Vanguard Australian Shares ETF (VAS)	$385,859
Vanguard International Shares ETF (VGS)	$579,897
Betashares Australia 200 ETF (A200)	$280,714
Telstra shares (TLS)	$2,291
Insurance Australia Group shares (IAG)	$7,221
NIB Holdings shares (NHF)	$10,140
Gold ETF (GOLD.ASX)	$129,373
Secured physical gold	$20,519
Bitcoin	$514,175
Raiz app (Aggressive portfolio)	$20,817
Spaceship Voyager app (Index portfolio)	$3,525
BrickX (P2P rental real estate)	$4,488
Total portfolio value	$2,928,717 (+$87,366)

Asset allocation

Australian shares	34.4%
Global shares	32.1%
Emerging market shares	1.4%
International small companies	1.8%
Total international shares	35.4%
Total shares	69.8% (-10.2%)
Total property securities	0.2% (+0.2%)
Australian bonds	2.2%
International bonds	5.1%
Total bonds	7.3% (+2.3%)
Gold	5.1%
Bitcoin	17.6%
Gold and alternatives	22.7% (+7.7%)

Presented visually, the pie chart below is a high-level view of the current asset allocation of the portfolio.

Comments

The financial independence portfolio advanced materially this month, growing by 3.1 per cent or $87,000.

This takes the portfolio total well beyond the anticipated $2.75 million target, even while some of its most important component parts – such as the equity portfolio – sit below what I am seeking as a condition of moving to any changed work arrangements.

The portfolio as a whole has only experienced three months at value levels beyond the current level, all off the back of then bouyant Bitcoin and equity markets at the end of 2021.

Australian equities showed capital growth of around 1.7 per cent across the month. International equities advanced slightly more, with gains of around 2.5 per cent.

Overall, this has led the total equity portfolio to exceed $2.0 million, with over $1.0 million in both Australian and international shares, a milestone that is significant in both the long journey, and this shorter record, which commenced – in 2017 – at a time when the entire portfolio had yet to exceed a million dollars in value.

Continue reading “Monthly Portfolio Report – June 2023”