Updated target allocation is 65% growth / 35% defensive (instead of 70% growth / 30% defensive). I consider these +/- 5%, e.g. 60-70% growth and 30-40% defensive. Current mix is 59% / 41%, so good progress on investing the lump sum and I can allow myself some small pleasure in the decision not to throw it all in the market back in April/May ! I plan to keep investing actively in the next month to get to the target 65% or very close at least.
The asset class split is as follows. The main change is the Aus/global share split now at 60/40%. I just see better value in the ASX, the yield is too enticing and with the AUD corrected down to a long-term fair value the upside for global shares is much less. Having tweaked a bit here and there, I intend to set this in stone now. The plan is to get portfolio in line with target allocations in the near term (next few months) and then stick to it as best as possible.
The asset class split is as follows. The main change is the Aus/global share split now at 60/40%. I just see better value in the ASX, the yield is too enticing and with the AUD corrected down to a long-term fair value the upside for global shares is much less. Having tweaked a bit here and there, I intend to set this in stone now. The plan is to get portfolio in line with target allocations in the near term (next few months) and then stick to it as best as possible.
GROWTH
Australia shares (mainly ETF but also some direct blue chips) = 39% [prev 38.5%]
Global shares = 26% (target around 3% of this AUD hedged) [prev. 31.5%]
Commercial property = 0%
DEFENSIVE
Aus Fixed interest (including term deposits) = 8.7% [prev 7.5%]
Global FI = 0%
Cash (includes high interest saving accounts) = 26.3% [prev 22.5%]
If possible, can you talk a bit about what you do in your day to day life after FIRE?
ReplyDeletethanks for the question, sure, it's a good prompt not to get stuck in the topic of financials .... I will not answer here, but make it the topic for the next blog post, hopefully to be written before too long !
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