21% p.a. average returns since in the last 3 years!
Sometimes investing feels slow and boring and most of the time it is. However it’s important to stick to the plan and keep going and celebrate the progress along the way.
Our Share Investing Portfolio is currently Australian LICs + (Global ETF ex Australia) and has returned a massive 21.5% pa over the last three years! Yah!
No doubt we are entering into the frothy area of the market but hey, why not look at the view when approaching the top as there were some tough bits of the climb along the way. And sure, there will be some steep descents again in the future.
We have spoken about our 1/3 Rule to diversify your investments. As a comparison our Net returns over the same time period on our IPs has been 31% pa and Super 26% pa (including contributions). So yes it’s been worth investing. Will these returns continue? Absolutely not. Will they happen again? Yes, big returns will happen again.
Property over the long term sees 80% of the returns 20% of time but hey, why not celebrate the success!
Since selling our individual shares (+12 holdings) and moving into LICs (4 holdings) plus an ETF, the stress has been removed to stay on top of the current company / industry news. We can sit back and know we have Portfolio Managers putting our hard earned money into the right areas. We have the DRP (Dividend Reinvestment Plan) on so all dividends are automatically reinvested free of charge (no brokerage).
Simple strategies are worth their weight in gold. Please feel free to celebrate your FIRE strategy successes in the comments below, we’d love to hear them and celebrate with you!
Hi guys, I’ve just discovered your blog 😁
Can I ask which are the 4 LICs you have? And why only one ETF?
I already have ARG, AFI & VAS. I have a sum from a sale of an IP, and am deliberating over where to send it!
Hi Jane, Thanks for reaching out. We have 4 LICs and also have a global ETF exposure which is why we only have one. LICs have a different structure (owner doesn’t get a CGT bill each year for internal ETF re-balancing). However ETFs get the 50% CGT discount on the distributed rebalancing amount so may not be much each year. You need to do your own research to find out which is best for you. Congratulations on your sale too!
Hi guys
I have a lump sump ready to invest into creating my fire goals and also a set and forget account investing strategy using either LIC or ETFs. Are you able to share the LICs you invest with, I’d like to do some more research on them. I’ve done plenty on ETFs and shortlisted a couple.
Ryan
Hi Ryan, Thanks for your message and awesome you have a lump sum ready to invest! An advantage of turning on DRP it’s automated to grow, then add when you have another chunk of cash. Make sure you track the DRP or addition trades for when/if you sell (a popular method is sharesight.com.au or good old google sheets). The LIC’s we have are the old low fee type checking the NTAs prior to purchase. We also have a global non-for-profit managed ETF for international exposure. Good luck and keep us in the loop how your investing goes.
Hi guys,
Would you please able to share name of 4 LICs,we also want to build portfolio of dividend,we are selling IPS in next few months.thanks
Unfortunately ASIC doesn’t allow me to recommend exact shares to invest in. However I would look up some of the old ones that have been around +40 years. We followed initially the Peter Thornhill ones but more recently just do a simple global high growth broad based ETF (The NTA was too high on the LICs). I also have IPs which we will transition one per year to avoid big CGT tax bills. Wishing you well on your transition.