2019 has seen our portfolio radically transform, not only in its absolute size but also in its make up. At the start of the year we held 35% of portfolio value in cash and a further 20% in a company share scheme with just 39% of our total portfolio held in Vanguard low cost index funds. As we draw towards the end of 2019 a clear shift towards Vanguard Index Funds is evident as they now represent a whopping 81% of our total portfolio value with 92% of our our total value held on the stock market.
The first nine months of 2019 have been mixed for young investers like ourselves. As fun as it is watching a portfolio balloon in size thanks to high stock market growth, the real thing we should all be wishing for is actually the very opposite, a large stock market decline allowing us to buy ‘on sale’.
So far in 2019, the our total portfolio grew in seven of the nine months and leaves our total portfolio value 7.55% higher than we have initially invested.
We have successfully managed to outperform our monthly investment target of £3,200 and due to strong stock market performance our portfolio has grown by an average of £914 per month.
We are currently projected to hit the magic £1,000,000 mark in September 2028, just nine years from now! Based on our current estimations this would be enough money for us to withdraw 4% (£40,000) a year for the rest of our lives and therefore no longer being dependent on our day jobs. Unfortunately for us, this projection is likely overly optimistic due to the exceptionally high average annualised growth rate of 13% since we started closely monitoring our finances.
How is your journey towards financial independence going? Let us know in the comments below.