The very place puts toys of desperation,
Without more motive, into every brain
That looks so many fathoms to the sea
And hears it roar beneath.

Shakespeare, Hamlet, Act 1, Scene 4

This is my one hundred and nineteenth 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).

This portfolio objective is based on an assumed safe withdrawal rate of 3.45 per cent.

A secondary focus will be maintaining the minimum equity target of $2,600,000.

Portfolio summary

Vanguard Lifestrategy High Growth Fund	$1,004,357
Vanguard Lifestrategy Growth Fund	$49,593
Vanguard Lifestrategy Balanced Fund	$83,563
Vanguard Diversified Bonds Fund	$88,234
Vanguard Australian Shares ETF (VAS)	$674,483
Vanguard International Shares ETF (VGS)	$1,166,059
Betashares Australia 200 ETF (A200)	$346,462
Gold ETF (GOLD.ASX)	$252,185
Bitcoin	$1,219,097
Plenti Capital Notes	$84,000
Financial portfolio value (excluding Bitcoin)	$3,748,936 (-$24,538)
Total portfolio value	$4,968,033 (-$133,507)

Asset allocation

Australian shares	28.5%
Global shares	32.6%
Emerging market shares	1.1%
International small companies	1.3%
Total international shares	35.0%
Total shares	63.5% (-16.5%)
Australian bonds	2.6%
International bonds	3.5%
Total bonds	6.0% (+1.0%)
Gold	5.1%
Bitcoin	24.5%
Gold and alternatives	29.6% (+14.6%)

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

Comments

The total portfolio value fell by $134,000 or 2.6 per cent this month, effectively returning the portfolio to its headline value at the end of January.

This fall was primarily driven by a lower price for Bitcoin holdings, which fell by around 8.2 per cent this month. Losses extended into the narrower financial portfolio as well, however, with this contracting by around $25,000.

The chart below sets out the performance of both the full and ‘financial assets only’ portfolios since the commencement of the journey.

Within the portfolio, Australian shares were steady across the month, however, gold fell by around 5.2 per cent. International equities also fell by around 1.7 per cent, as yields from US and other developed country bonds continued to advance. Bonds marked out a small gain across the full month, despite this, advancing around 0.8 per cent.

This month, once again, a small new investment was made in global equities (through the Vanguard exchange traded fund VGS), in accordance with the decision to regularly reinvest excess distributions and cash holdings.

Finalisation of third quarter portfolio distributions

Third quarter distributions were received across this month, totalling around $21,000 in direct payments.

These were around 6 per cent higher than projections, due in particular to higher than average payments from Australian equity ETFs. These third quarter distributions are up around 17 per cent on the equivalent payments last year.

Continue reading “Monthly Portfolio Update – October 2026”

Like unto gulls, they were borne on the waves around the black ship.

Homer The Odyssey Bk.XXII 403-425

This is my one hundred and eighteenth 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).

This portfolio objective is based on an assumed safe withdrawal rate of 3.45 per cent.

A secondary focus will be maintaining the minimum equity target of $2,600,000.

Portfolio summary

Vanguard Lifestrategy High Growth Fund	$1,004,618
Vanguard Lifestrategy Growth Fund	$49,528
Vanguard Lifestrategy Balanced Fund	$83,310
Vanguard Diversified Bonds Fund	$87,561
Vanguard Australian Shares ETF (VAS)	$676,200
Vanguard International Shares ETF (VGS)	$1,176,321
Betashares Australia 200 ETF (A200)	$345,949
Gold ETF (GOLD.ASX)	$265,987
Bitcoin	$1,328,066
Plenti Capital Notes	$84,000
Financial portfolio value (excluding Bitcoin)	$3,773,474 (-$14,362)
Total portfolio value	$5,101,540 (+$104,410)

Asset allocation

Australian shares	27.8%
Global shares	32.0%
Emerging market shares	1.1%
International small companies	1.2%
Total international shares	34.3%
Total shares	62.1% (-17.9%)
Australian bonds	2.5%
International bonds	3.4%
Total bonds	5.9% (+0.9%)
Gold	5.2%
Bitcoin	26.0%
Gold and alternatives	31.2% (+16.2%)

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

Comments

The portfolio continued to grow at the headline level this month, increasing by around $104,000, or 2.1 per cent.

This growth, however, was entirely due to a re-pricing of Bitcoin holdings, with the underlying traditional financial portfolio contracting marginally, with losses of $14,000 or 0.4 per cent.

The chart below sets out the performance of both the full and ‘financial assets only’ portfolios since the commencement of the journey.

Australian shares declined by around 2.4 per cent across the month, with gold also falling by around 3.2 per cent.

A key trend over the month was the continuing grinding higher of long-term government bond yields, and cash rates, with the former being partly reflected in the value of bond holdings falling by 1.7 per cent.

Across the month, international equities grew by around 1.9 per cent, with US markets touching new highs within the month.

Bitcoin rose significantly, by 9 per cent, with its performance continuing to diverge from the general performance of the traditional financial assets.

This month, a small new investment was made in global equities (through the Vanguard exchange traded fund VGS), in accordance with the decision to regularly reinvest excess distributions and cash holdings.

The close of the third quarter of the year means that distributions from the ETFs and funds held will accrue and be paid out in coming weeks.

Initial indications of the ETF providers’ estimated distributions show that payments are slightly above median payouts. Should the Vanguard retail funds making up the remainder of the portfolio display only average long-term performance, they suggest total final third quarter distributions of around $21,000, about $1,300 or 7 per cent higher than projections.

What the years have gathered: trends in taxable investment income

This month I completed my tax return for the last financial year.

This taxation record data provides an independent lense through which to track trends in investment income, and progress towards the financial independent objectives set. The primary way progress is tracked is through progress to the goal, and biannually, through analysis of portfolio income, however, formal taxation records provides a useful ‘cross check’ on the trends observed there.

Continue reading “Monthly Portfolio Update – September 2026”

For gifts beguile men’s mind and their deeds too.

Nostoi, Fragment 1

This is my one hundred and seventeenth 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).

This portfolio objective is based on an assumed safe withdrawal rate of 3.45 per cent.

A secondary focus will be maintaining the minimum equity target of $2,600,000.

Portfolio summary

Vanguard Lifestrategy High Growth Fund	$1,016,625
Vanguard Lifestrategy Growth Fund	$50,179
Vanguard Lifestrategy Balanced Fund	$84,517
Vanguard Diversified Bonds Fund	$89,102
Vanguard Australian Shares ETF (VAS)	$692,260
Vanguard International Shares ETF (VGS)	$1,142,404
Betashares Australia 200 ETF (A200)	$353,868
Gold ETF (GOLD.ASX)	$274,881
Bitcoin	$1,209,294
Plenti Capital Notes	$84,000
Financial portfolio value (excluding Bitcoin)	$3,787,836 (-$74,005)
Total portfolio value	$4,997,130 (+$270,617)

Asset allocation

Australian shares	28.9%
Global shares	32.1%
Emerging market shares	1.1%
International small companies	1.3%
Total international shares	34.5%
Total shares	63.4% (-16.6%)
Australian bonds	2.6%
International bonds	3.5%
Total bonds	6.1% (+1.1%)
Gold	5.5%
Bitcoin	24.2%
Gold and alternatives	29.7% (+14.7%)

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

Comments

The portfolio produced substantial growth this month, increasing by around $270,000 or 5.7 per cent.

This represents the fifth largest monthly growth in nominal dollar terms. The traditional financial portfolio also produced a strong result, increasing by around $74,000.

The chart below sets out the performance of both the full and ‘financial assets only’ portfolios since the commencement of the journey.

Across the month, international equities grew by around 0.8 per cent, with US markets touching new highs within the month. Gold holdings also increased by around 6.5 per cent, reversing broad falls and flatness over the last two months.

Australian equities also performed well, increasing by around 1.6 per cent, while bond holdings remained relatively steady.

Across the month, Bitcoin rose significantly, by 18 per cent. Interestingly, this month it remains in its longest period as a ‘negative beta’ asset experienced since 2017 – at four months. Correlation between the Bitcoin holdings and the broader financial portfolio is also close to the most negative levels since 2019. In other words, Bitcoin is tending to move in the opposite direction to the broadly equity based portfolio.

The month, a small additional new investment was made in global equities (through the Vanguard exchange traded fund VGS), in accordance with the decision to regularly reinvest excess distributions and cash holdings.

Lessons from 150 years of Australian asset returns

This month I had time to look over a new paper Long-Term Comparative Analysis of The Relative Performance of Australian Asset Classes by Tonkin, Bilson, Brailsford, and Gallagher which uses 150 years of asset returns data to compare returns and correlations across the full set of traditional asset classes, such as equities, property, fixed interest and cash.

Continue reading “Monthly Portfolio Update – August 2026”

The seeming truth that cunning times put on
To entrap the wisest.

Shakespeare, The Merchant of Venice

This is my one hundred and sixteenth 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).

This portfolio objective is based on an assumed safe withdrawal rate of 3.45 per cent.

A secondary focus will be maintaining the minimum equity target of $2,600,000.

Portfolio summary

Vanguard Lifestrategy High Growth Fund	$998,136
Vanguard Lifestrategy Growth Fund	$49,458
Vanguard Lifestrategy Balanced Fund	$83,617
Vanguard Diversified Bonds Fund	$89,059
Vanguard Australian Shares ETF (VAS)	$680,920
Vanguard International Shares ETF (VGS)	$1,121,833
Betashares Australia 200 ETF (A200)	$348,791
Gold ETF (GOLD.ASX)	$258,017
Bitcoin	$1,012,682
Plenti Capital Notes	$84,000
Financial portfolio value (excluding Bitcoin)	$3,713,831 (-$21,738)
Total portfolio value	$4,726,513 (+$28,959)

Asset allocation

Australian shares	30.1%
Global shares	33.3%
Emerging market shares	1.2%
International small companies	1.3%
Total international shares	35.8%
Total shares	65.9% (-14.1%)
Australian bonds	2.7%
International bonds	3.7%
Total bonds	6.4% (+1.4%)
Gold	5.5%
Bitcoin	21.4%
Gold and alternatives	26.9% (+11.9%)

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

Comments

This month the overall portfolio was relatively flat, increasing only nominally by $29,000 or 0.6 per cent.

In contrast to last month, value of the financial portfolio fell by a small amount – $22,000 – but this was cushioned at the overall portfolio level by some positive price movements for Bitcoin.

The chart below sets out the performance of both the full and ‘financial assets only’ portfolios since the commencement of the journey.

Across the month the largest falls were in the value of global shares, with a capital loss of around 1.7 per cent. Australian equities rose slightly in capital value terms by around 1.6 per cent.

Complicating the story here somewhat, is the fact that distributions from retail funds and ETFs were equivalent to between 0.5 – 0.8 per cent of each funds value, meaning that the global equity capital falls to some extent simply reflected the payout event, a transference effectively from the securities capital price, to the income column. As an indication of this effect, $33,000 of distributions were paid out across this month, from second quarter distributions, constituting more than the headline ‘loss’ of the financial portfolio.

Equity markets appear to be still responding to ongoing uncertainty around conflict and long-term prospects for freedom of navigation in the Persian gulf, as well as higher bond rates, in the absence of strong growth impulses across much of the developed world.

Gold was flat across the month and is at values that were seen almost a year ago. In addition, over the month, bond holdings lost around 4.1 per cent, although once again, this partially reflected the large distributions recently report in the portfolio income update.

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.

Continue reading “Monthly Portfolio Update – July 2026”