Chapter 8 - “Portfolio Update” January 2019 Update Net Worth $78227 (+$2084) - The Incompetent Investor

Monday, January 14, 2019

Chapter 8 - “Portfolio Update” January 2019 Update Net Worth $78227 (+$2084)





Welcome to Chapter 8 of the Journey to Financial Independence. Every month I share how I am tracking towards financial freedom by providing you with an update of where the family portfolio is up to in regards to our ticket to financial freedom. Note my definition of financial freedom is not to stop working, it is much more than that. Have a read here if you are interested.

New readers, if you have not read some of the challenges I have faced in hope of financial independence, have a read here. Perhaps you have had other challenges yourself? Tough career break, career change, relationships, medical setbacks and so on... we all have challenges.. 

Portfolio Update 

This month has been a better month for the ASX which has seen the family portfolio regain some ground. 


As noted, from the previous portfolio update, the S&P/ASX 200 has regained circa 3.08% since my last entry. Consequently, the portfolio update this month was a bit more uplifting! 

Am I Concerned About A Bear Market?

There is a lot of commentary noting that a bear market is approaching. What am I doing? At this stage I am consistently adding to the portfolio given I intend to never sell my dividend producing LIC's/ETF's. Cufflinks, a great finance blog, explained that in 2017, we saw a six year rally in every major investment class (Ashley Owen, Cufflinks, 2019). According to this article, never before in history had we seen every mainstream asset class enjoying positive returns (after inflation) for 6 continuous years (Ashley Owen, Cufflinks, 2019). The last time this occurred was in 1925 to 1928, which was...before the 1929 crash and the 1930s depression. 

Is this time different? 

Probably not. However, in our circumstances, we are not planning on receiving our dividends for another 15 years or more. Therefore, my dividend spitting machines will be used to reinvest through the market cycles. In my mind, as long as I am increasing the total units held, my income over time will increase. People tell me I am crazy. They explain that I should pull my money out and try and time the market. In principle that is a great idea. However, nobody can do it consistently. Have a read of my blog post here as to why I personally believe most people are unable to time the market. 

Summary 

I hope you are all kicking goals to the start of 2019. My year has been awesome. I've got a new job working in the Community Development sector and I absolutely love it. I've got awesome colleagues who are supportive and appear to be genuinely happy for me when I am doing well at my role. This is always a relief when you move to a new city, state, and job. 

Family Portfolio LIC/ETF Update

I've added Milton to our family portfolio this month. A total of of 876 units were added. 

Family Holding's 


That is all from me. Catch you all soon!

Cheers from Darwin! 



Disclaimer: The information on this website is general information and should not be taken as financial advise. I am simply documenting my journey and experience. I am also not a licensed Financial Adviser. You should always seek independent legal, financial, taxation and other advise that relates to your unique circumstances. The Incompetent Investor is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website. 

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