COVID19 – FIRE Planning

It’s been a very interesting year in 2020. It’s always important to implement systems to stay the course and not panic. Investing is a long game and over the years we have learnt this. We would like to give an update on our strategy. As some of our followers know we have 3 key areas we invest (we call in the Family on Fire 1/3 rule), Shares, Investment Properties and Super. We outline below the key changes for us in 2020.

Super

No change here. We still put our maximum $25k each into our super – high growth / equities (40% into International equities).

Rainy Day Fund

We now keep at least 6-12 months of cash in our rainy day account (offset account). This is incase I lose my job and/or all of our rentals are not being rented.

What to expect in 2021

No one really knows!  The vaccines are starting to be rolled out and in Australia we are getting on top of outbreaks, but we are to expect more outbreaks and we are learning to better live with this virus. Human endeavour will keep pushing markets up. We will continue to keep small cash reserves for job loss or reduction in business/rental income. However we are still staying the course and in the game.  Often during these disasters people look back in years to come and say, “What a time to invest!”. 

It’s been so great to hear messages (public and private) from the Family On Fire readers and I’ve learnt so much from you. We are looking to invest our trust more internationally, this may be a small portion in a LIC or ETF.

Love to hear your FIRE plans! Please continue to let us know