The moving finger writes; and, having writ,
Omar Khayyam
Moves on: nor all thy piety nor wit.
Shall lure it back to cancel half a line,
Nor all thy tears wash out a word of it.
This is my eighty-fourth 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 | $761,609 |
| Vanguard Lifestrategy Growth Fund | $39,947 |
| Vanguard Lifestrategy Balanced Fund | $72,181 |
| Vanguard Diversified Bonds Fund | $87,529 |
| Vanguard Australian Shares ETF (VAS) | $454,520 |
| Vanguard International Shares ETF (VGS) | $607,310 |
| Betashares Australia 200 ETF (A200) | $275,474 |
| Telstra shares (TLS) | $2,036 |
| Insurance Australia Group shares (IAG) | $7,525 |
| NIB Holdings shares (NHF) | $9,096 |
| Gold ETF (GOLD.ASX) | $138,218 |
| Secured physical gold | $21,884 |
| Bitcoin | $634,473 |
| Raiz app (Aggressive portfolio) | $21,884 |
| Spaceship Voyager app (Index portfolio) | $3,494 |
| BrickX (P2P rental real estate) | $4,434 |
| Plenti Capital Notes Market Loan | $5,000 |
| Total portfolio value | $3,145,606 (+$154,243) |
Asset allocation
| Australian shares | 34.0% |
| Global shares | 30.7% |
| Emerging market shares | 1.3% |
| International small companies | 1.7% |
| Total international shares | 33.7% |
| Total shares | 67.6% (-12.4%) |
| Total property securities | 0.1% (+0.1%) |
| Australian bonds | 1.9% |
| International bonds | 4.7% |
| Total bonds | 6.9% (+1.9%) |
| Gold | 5.1% |
| Bitcoin | 20.2% |
| Gold and alternatives | 25.3% (+10.3%) |
Presented visually, the pie chart below is a high-level view of the current asset allocation of the portfolio.
Comments
The financial independence portfolio moved in a strongly positive direction this month, with a gain of around $154,000.
This means the portfolio sits about any previous month end figure, and just below it highest value ever calculated in November 2021.
Overall, the portfolio grew by 5.2 per cent, making it the second strongest monthly performances of the year.
The growth in the portfolio was broad-based.
Global equities grew in value by 5.0 per cent. Bitcoin rose in value by 5.2 per cent. Australian equities also joined in the expansion, appreciating around 5.0 per cent. Even bond holdings turned in a positive perfomance, of around 3.0 per cent
The only significant capital losses across the month were a reduction in gold prices, resulting a 2.1 per cent loss on gold ETF holdings.
This performance occurred in a period of continued growing acceptance that Australian interest rates may still not have peaked, or may not be in a position to decline as rapidly as those overseas due to domestic inflationary forces.
Continue reading “Monthly Portfolio Report – November 2023”
