It is great, because it is inevitable yet surprising
Balthasar van der Pol
Twice a year I prepare a summary of total income from my financial independence portfolio. This is my twentieth portfolio income update since starting this record. As part of the transparency and accountability of this journey, I regularly report this income.
My primary goal is to maintain a portfolio of at least $3,250,000 which is capable of providing a passive income of around $112,000 (in 2026 dollars), based on an assumed safe withdrawal rate of 3.45 per cent. A secondary focus is maintaining a minimum equity target of $2,600,000.
Portfolio income summary
Investment
Amount
Vanguard Lifestrategy High Growth (retail fund)
$25,019
Vanguard Lifestrategy Growth (retail fund)
$1,638
Vanguard Lifestrategy Balanced (retail fund)
$3,719
Vanguard Diversified Bonds (retail fund)
$5,424
Vanguard Australian Shares ETF (VAS)
$8,191
Vanguard International Shares ETF (VGS)
$8,363
Betashares Australia 200 ETF (A200)
$5,070
Plenti Capital Notes
$3,770
Total Portfolio Income – Half-Year to June 30, 2026
$61,194
The chart below sets out the distributions received on a half-yearly basis from the financial independence portfolio over the past nine years.
For I say there is no other thing that is worse than the sea for breaking a man, even though he may be a very strong one.
Homer, The Odyssey, Book 8
This is my one hundred and fifteenth monthly portfolio update. I complete this regular update to check progress against my goal.
Portfolio goal
My objective is to maintain a portfolio of at least $3,250,000. This should be capable of producing an annual income from total portfolio returns of about $112,000 (in 2026 dollars).
A secondary focus will be maintaining the minimum equity target of $2,600,000.
Portfolio summary
Vanguard Lifestrategy High Growth Fund
$1,020,192
Vanguard Lifestrategy Growth Fund
$50,793
Vanguard Lifestrategy Balanced Fund
$86,408
Vanguard Diversified Bonds Fund
$92,856
Vanguard Australian Shares ETF (VAS)
$670,009
Vanguard International Shares ETF (VGS)
$1,130,147
Betashares Australia 200 ETF (A200)
$343,341
Gold ETF (GOLD.ASX)
$257,823
Bitcoin
$961,985
Plenti Capital Notes
$84,000
Financial portfolio value (excluding Bitcoin)
$3,735,569 (+$55,028)
Total portfolio value
$4,697,554 (-$125,692)
Asset allocation
Australian shares
30.1%
Global shares
33.9%
Emerging market shares
1.2%
International small companies
1.4%
Total international shares
36.5%
Total shares
66.6%(-13.4%)
Australian bonds
2.8%
International bonds
3.8%
Total bonds
6.6%(+1.6%)
Gold
5.5%
Bitcoin
20.5%
Gold and alternatives
26.0%(+11.0%)
Presented visually, the pie chart below is a high-level view of the current asset allocation of the full portfolio.
Comments
This month saw a sharp a fall in the headline portfolio, of around $126,000, or around 2.6 per cent.
This was entirely due to a sharp correction in the price of Bitcoin, which fell by 16 per cent across the month.
The underlying financial portfolio, however, expanded, growing 1.5 per cent, or $55,000, to reach a new highest value of $3.7 million.
The chart below sets out the performance of both the full and ‘financial assets only’ portfolios since the commencement of the journey.
The strongest contribution to financial portfolio growth was a small positive movement in global equities (of around 3 per cent), reinforced by a marginal increase in Australian shares (of 0.6 per cent) over the last month.
By contrast, gold continued its falls since January, with the value of holdings falling a further 8.0 per cent, despite continued accumulation by developing and emerging economy central banks.
Over the month, bond holdings made a small gain of 0.9 per cent.
The month, as previously, small additional new investments were made in global equities (through the Vanguard exchange traded fund VGS), in accordance with the decision to regularly reinvest excess distributions and cash holdings.
Breaking storm? Early trends in second quarter distributions
Prior to the finalisation of this update, the three major exchange traded fund announced provisional distributions.
This permits an early glimpse of some of the portfolio income record, which will be added to and reported more comprehensively across the weeks to come.
I now suggest that in addition we each give him a large tripod and a cauldron. Later we will recoup ourselves by a collection from the people, since it would be hard on us singly to show such generosity with no return.
Homer, The Odyssey, Bk.13
This is my one hundred and fourteenth monthly portfolio update. I complete this regular update to check progress against my goal.
Portfolio goal
My objective is to maintain a portfolio of at least $3,250,000. This should be capable of producing an annual income from total portfolio returns of about $112,000 (in 2026 dollars).
A secondary focus will be maintaining the minimum equity target of $2,600,000.
Portfolio summary
Vanguard Lifestrategy High Growth Fund
$997,919
Vanguard Lifestrategy Growth Fund
$49,823
Vanguard Lifestrategy Balanced Fund
$85,002
Vanguard Diversified Bonds Fund
$91,999
Vanguard Australian Shares ETF (VAS)
$665,779
Vanguard International Shares ETF (VGS)
$1,085,623
Betashares Australia 200 ETF (A200)
$340,266
Gold ETF (GOLD.ASX)
$280,130
Bitcoin
$1,142,705
Plenti Capital Notes
$84,000
Financial portfolio value (excluding Bitcoin)
$3,680,541 (+$105,837)
Total portfolio value
$4,823,246 (+$67,667)
Asset allocation
Australian shares
29.0%
Global shares
31.9%
Emerging market shares
1.2%
International small companies
1.3%
Total international shares
34.3%
Total shares
63.4%(-16.6%)
Australian bonds
2.7%
International bonds
3.6%
Total bonds
6.3%(+1.3%)
Gold
5.8%
Bitcoin
23.7%
Gold and alternatives
29.5%(+14.5%)
Presented visually, the pie chart below is a high-level view of the current asset allocation of the full portfolio.
Comments
This month the portfolio continued to recover, growing by approximately $68,000 in headline terms, or around 1.4 per cent.
This growth is attributable to appreciation in financial assets, with the narrower financial portfolio alone increasing by $106,000 or 3.0 per cent. This places the financial portfolio technically at the highest level ever reached, just above the level attained at the end of February.
The chart below sets out the performance of both the full and ‘financial assets only’ portfolios since the commencement of the journey.
The contributors to this strong performance were positive movements in global equity markets, combined with some currency benefit. This in turn has helped the global equity portfolio to reach its highest ever level, in absolute dollar terms, rising by 5.6 per cent. The global equity portfolio is also around 54 per cent of the total equity portfolio, a level not seen since the second half of 2017.
Australian equities were slightly positive across the month, rising by 1.0 per cent, while bond slightly rose in value by 0.8 per cent.
Across alternative asset classes, Bitcoin also drifted lower by around 3.2 per cent across the month and gold continued its recent negative performance, falling by around 1.0 per cent.
The month, as previously, small additional new investments were made in global equities (through the Vanguard exchange traded fund VGS), in accordance with the decision to regularly reinvest excess distributions and cash holdings.
Harbour dues: proposed changes to capital gains taxation
This month also saw the delivery of the Federal budget, and announcement of a set of potential reforms to the taxation of a range of assets and some trusts.
The impact of these will differ according to every personal circumstance, but I have been considering what they mean – if anything – for my longer-term financial independence portfolio and status.
J.R.R Tolkien The Voyage of Earendel the Evening Star
This is my one hundred and thirteenth monthly portfolio update. I complete this regular update to check progress against my goal.
Portfolio goal
My objective is to maintain a portfolio of at least $3,250,000. This should be capable of producing an annual income from total portfolio returns of about $112,000 (in 2026 dollars).
A secondary focus will be maintaining the minimum equity target of $2,600,000.
Portfolio summary
Vanguard Lifestrategy High Growth Fund
$970,555
Vanguard Lifestrategy Growth Fund
$48,659
Vanguard Lifestrategy Balanced Fund
$83,390
Vanguard Diversified Bonds Fund
$91,304
Vanguard Australian Shares ETF (VAS)
$657,749
Vanguard International Shares ETF (VGS)
$1,016,641
Betashares Australia 200 ETF (A200)
$337,076
Gold ETF (GOLD.ASX)
$285,330
Bitcoin
$1,180,875
Plenti Capital Notes
$84,000
Financial portfolio value (excluding Bitcoin)
$3,574,074 (+$103,919)
Total portfolio value
$4,755,579 (+$188,076)
Asset allocation
Australian shares
29.0%
Global shares
30.6%
Emerging market shares
1.1%
International small companies
1.3%
Total international shares
33.1%
Total shares
62.0%(-18.0%)
Australian bonds
2.7%
International bonds
3.6%
Total bonds
6.3%(+1.3%)
Gold
6.0%
Bitcoin
24.8%
Gold and alternatives
30.8%(+15.8%)
Presented visually, the pie chart below is a high-level view of the current asset allocation of the full portfolio.
Comments
This past month the portfolio rebounded from the previous losses, expanding by $188,000 or around 4.1 per cent.
As a result a five month downward trend in the overall portfolio value was broken. From the perspective of the financial portfolio, movements through April partly reversed about half of the losses of the prior month.
This leaves the financial portfolio within around two per cent of its highest ever value, despite the ongoing elevated levels of geopolitical instability.
In sharp contrast, the full portfolio has only just returned to levels first reached in late 2024, due to prolonged falls in the price of Bitcoin.
The chart below sets out the performance of both the full and ‘financial assets only’ portfolios since the commencement of the journey.
Driving the strong performance this month has been a rebounding in global equity markets, of around 5.2 per cent, as well as growth in the price of Bitcoin (7.7 per cent), after significant falls over the past six months.
Australian equities continued to deliver small positive returns, with capital appreciation of around 1.1 per cent and payments of quarterly income of around 1.0 per cent.
The general economic picture over the medium-term is clouded by uncertainty over the full impacts of closure of the Straits of Hormuz, and the flow on ramifications to global supply chains, liquid fuels, and prices. It is possible that even as equity markets provide broadly positive signals, the effects of the crisis will persist and cascade through everyday markets and consumer experiences for months or years ahead.
Gold holdings drifted lower by around 4.5 per cent per cent, continuing a retreat since the end of January.
The month as previously small additional new investments were made in global equities (through the Vanguard exchange traded fund VGS), in accordance with the decision to regularly reinvest excess distributions and cash holdings.
Weather margin: the role and effects of currency exposure on the portfolio
One of the less visible elements of portfolio performance over time, which has an increasing absolute dollar impact on portfolio performance as the portfolio grows, is the effect of currency exposures.
