FIRE Progress – April 2020

From March to April, my net worth decreased by 14.1%, down to $31,222. My ASX portfolio, Super, as well as my other investments has taken a hit due to the market decline as a result of the coronavirus:

At the start of April, my ASX portfolio is currently down a total of 14.09% since the start of 2020. While it has dropped, it’s not bad considering the ASX200 has dropped 24.05%, according to this article and the SelfWealth graph below.

I have been contributing to my portfolio whenever I have the chance (when I get paid), so buying more of my holdings at a lower price has helped to reduce the avergage purchase price.

My largest holdings by value and weight are:

  1. IOZ (21%) – ETF tracking the ASX200.
  2. VAE (12%) – ETF tracking the Asian market, excluding japan.
  3. WAM (9%) – LIC in Australian market.
  4. VTS (8%) – ETF tracking the US market.
  5. NDQ (8%) – ETF tracking the top 100 technology companies in the US.

Total weight of top 5 holdings = 58%. The rest of my portfolio is within smaller, more specific ETFs and a few single companies.

So at the moment, my largest holdings are within the Australian market (IOZ + WAM = 30%), Asian market (12%), and American market (16%). Ideally, I’d like to increase these holdings to where I hold roughly 30% split across each of the Aus, Asia, and US markets. My recent investments have been within VAE and VTS to increase my portfolio weighting.

As mentioned last month, this current situation doesn’t particularly help my goal in reaching a portfolio value of $70,000 and my net worth of $100,000 this year, but I’ll be continuing to invest with every pay check and when it all turns around, perhaps closer to the end of the year, I will be closer to reaching my goals.

Since I started investing in late 2016, this is the first time I’ve experienced any major market decline and recession. I am glad to know that my psychology about investing has remained the same (or strengthened). I’m also grateful that I have some wise investing friends who I can keep me on the correct course if I get side-tracked.

I’m really keen to see what everything looks like next month, and closer to the end of the year.

My savings rate for March was 56% – all of which was either put in an emergency fund (I should have already had this) and investing. Super happy about that! January and February were 46%.

Nathan

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