It is difficult to say what is impossible – for the dream of yesterday is the hope of today and the reality of tomorrow.
Robert Goddard
Year in Review
This year has been one of the most significant in the journey to financial independence so far.
Following the set-backs of 2022, the portfolio achieved strong forward momentum through most of the past year.
The original guiding goals set for this year were three-fold:
- achieving and maintaining the overall portfolio target of $2.75 million;
- achieving a minimum equity portfolio target of around $2.2 million; and
- building a cash reserve of at least one year of normal expenditure.
The first of these goals was achieved in March. The second was just achieved in the last month, following upward movement in equity markets and a final regular investment for the year.
The cash reserve targeted has not yet been built, though this may change over the coming year.
This means that two of the three pre-conditions which were set for any movement from my current work arrangements have been met, while the last is still a little way off.
Taking a look at movement against the financial independence benchmarks set through this past year highlights the significant progress made in the past 12 months.
Progress against FI measures through 2023
| Measure | Portfolio | All Assets |
| Portfolio objective – $2,750,000 (or $94,800 pa) | 89%→121% | 117%→154% |
| Total average expenses (2013-present) – $87,800 pa | 96%→130% | 127%→167% |
| Target equity holding in portfolio – $2,200,000 | 83%→102% | N/A |
The past few years have seen major oscillations in the final portfolio value.
Last year saw a loss of around $500,000 across the calendar year, immediately following a strong portfolio performance in 2021.
This past year has seen the portfolio grow by over $870,000, or 35 per cent of its initial value at the start of the year.
This is the largest dollar value gain in a calendar year over the history of the portfolio, and a percentage growth of a similar scale to growth in 2019 and 2017.
Each of these previous advances changed fundementally the type of portfolio which was being managed – and the gains this year will do the same.
Progress of the journey
This year has been in its essentials a resumption of the trend of growth, assisted by compounding and bouyant markets, that has been a feature of the journey since 2007.
This growth has reversed the losses of 2022, and restored something that looks quite close to a consistent geometric style expansion in the portfolio.
Continue reading “Year in Review and Monthly Portfolio Update – December 2023”
