Day by day, what you choose, what you think and what you do is who you become.
Heraclitus
This is my fifty-fifth monthly portfolio update. I complete this regular update to check progress against my goal.
Portfolio goal
My objective is to reach a portfolio of $2,585,000 by 31 July 2022. This would produce a real annual income of about $90,500 (in 2021 dollars).
This portfolio objective is based on an assumed safe withdrawal rate of 3.5 per cent.
Portfolio summary
| Vanguard Lifestrategy High Growth Fund | $861,242 |
| Vanguard Lifestrategy Growth Fund | $46,541 |
| Vanguard Lifestrategy Balanced Fund | $83,858 |
| Vanguard Diversified Bonds Fund | $100,821 |
| Vanguard Australian Shares ETF (VAS) | $339,296 |
| Vanguard International Shares ETF (VGS) | $185,504 |
| Betashares Australia 200 ETF (A200) | $288,586 |
| Telstra shares (TLS) | $2,004 |
| Insurance Australia Group shares (IAG) | $6,537 |
| NIB Holdings shares (NHF) | $7,812 |
| Gold ETF (GOLD.ASX) | $106,302 |
| Secured physical gold | $16,991 |
| Plenti (P2P lending) | $3,076 |
| Bitcoin | $518,680 |
| Raiz app (Aggressive portfolio) | $21,032 |
| Spaceship Voyager app (Index portfolio) | $3,409 |
| BrickX (P2P rental real estate) | $4,552 |
| Total portfolio value | $2,596,243 (+$63,666) |
Asset allocation
| Australian shares | 38.7% |
| Global shares | 22.7% |
| Emerging market shares | 1.8% |
| International small companies | 2.3% |
| Total international shares | 26.8% |
| Total shares | 65.5% (-9.5%) |
| Total property securities | 0.2% (+0.2%) |
| Australian bonds | 3.0% |
| International bonds | 6.5% |
| Total bonds | 9.5% (-5.5%) |
| Gold | 4.7% |
| Bitcoin | 20.0% |
| Gold and alternatives | 24.7% (+14.7%) |
Presented visually, the chart below is a high-level view of the current asset allocation of the portfolio.
Comments
The portfolio has gained around $63,000 over this past month. This has meant a partial recovery from the steep falls experienced last month.
All elements of the portfolio contributed to this return to growth, except for a small fall in the value of gold holdings.
Over the month the portfolio has increased by a total of 2.5 per cent. This growth means that the portfolio is once again operating just above the final portfolio goal, following it first reaching that level in late December 2020, and spending some time above it through the early part of this year.
Once again the equity component of the portfolio grew this month, increasing by around $60,000. This pushed forward the equity portfolio to two significant milestones.
First, the Australian equity portfolio has broken the $1,000,000 mark. By way of comparison, Australian equities represented $280,000 at the beginning of this record in early 2017.
Second, the total equity portfolio – including global equities – has now reached $1.7 million, or 88 per cent of the intended target allocation (of $1.9 million, or around 75 per cent of the total portfolio goal).
The value of Australian equities grew by around 2.0 per cent, and the value of international shares increased by around 4.3 per cent over the month.
Continue reading “Monthly Portfolio Update – June 2021”
