Wealth From Thirty | Contemplations on value investing and personal finance
Wealth From Thirty shares my journey of value investing and cultivating wealth from Australia. I'm not a financial adviser or investment expert, but do have an obsession for saving and investing and enjoy talking economics and finance in general. I'm 30, completing a combined PhD and Masters degree in a non-finance field, whilst making a small income teaching and on scholarship...
I’m a value investor with a taste for dividends. I’d like to live off the dividends from my portfolio when I reach financial independence. Every month I record the dividends harvested from my portfolio in my trusty Numbers spreadsheet. They’re reported here for you to enjoy too.
There were no dividends in the WF30 portfolio in June, but not to worry – a sweet dividend hit my account in July.
July Dividend Income
In July, I received dividends from Capilano Honey. Capilano is Australia’s most popular honey supplier (producing and packaging) and was recently the subject of a takeover offer, valuing the shares at $20.06. The offer I’ll gladly accept as it is just a little under what I thought the shares were currently worth. I did think the value of the company would continue to grow, but it looks like that will now happen off-market.
Hello again! This post is coming out a little late – more or less because July was a blur! A busy month at work and with my PhD – which is due by the end of this month. Egad! I’m excited and nervous and can’t wait to have it done. Some family from interstate also visited which was awesome.
I’ve continued thinking about simplifying my portfolio and am more convinced that’s the way I’ll head. New investments will be into the four ETF fund I’ve written about in my 3 Simple ETF Portfolio’s for Aussies post. Because I’ve got a handful of LIC’s that are mainly invested in Aussie stocks, I won’t use BetaShares A200 fund until my Australian investment weighting drops below 30%. I’ll continue to invest in the odd individual stock here and there, but probably 80% of the portfolio will end up being ETFs.
Speaking of simple investment plans, I had a conversation with my brother recently about investing for his new born son (genuinely adorable). He and his wife have settled on Vanguards High Growth ETF (VDHG). I think it’s an excellent choice. Their main priority was capital growth of 20ish years and keeping things simple – VDHG certainly does that. I’m excited for them as they now have a brokerage account with CMC and are ready to invest their first chunk of money.
On the financial side of life, I had an EOFY chat with my account. She’s been a huge source of knowledge and sensible advice which I’ve found invaluable. We talked over whether a SMSF was the best way for me to buy a commercial property for work (it’s not) and a few other tidbits.
Cash increased, and Superannuation was up slightly. The WF30 portfolio increased 2.2% for the month which was nice after a couple down months. I also added another $1k.
Credit debt increased but as always, is paid out end of month. The business loan decreased and all other debts were steady.
My savings rate as of this new FY are after tax. Being able to save anything more than 10% is a real blessing.
Savings Rate: 34.8%
Assets: Cash: $19,382 increased 7.27%
Superannuation: $44,040 up 0.69%
Investments: $25,537 up 2.2%% (market gain + $1015 deposit)
Other Assets: $9,079 down 1.20%
Total Assets: $98,038 up 2.53%
Liabilities: Credit Cards : ($2,173) up 23.49%
Student Loans: ($32,992) increased 2.13% due to inflation for the year
Business Loan: ($9,850) reduced 2.96%
Other Liabilities: ($21,500) steady
Total Liabilities: ($66,515) increased 1.22%
Net Worth: $31,523 increased 5.42%
What were your finances like in July? Comments are always welcome!
Cash consists of online savings accounts. I moved away from carrying cash in Q1 2015 and make 95% of my transactions electronically, for more accurate and up to date record keeping with Pocketsmith. I have a small transaction account holding around a tenth of my cash funds with the balance held in an ’emergency fund’ and a smaller account for rent savings/payments, both in modest interest bearing accounts (2-3%p.a.).
Superannuation is the Government mandated retirement savings system in Australia
Other Assets consists of one car at market value, depreciating monthly.
Student Loans consist of the HECS/HELP debt provided by the Australian Government, indexed to inflation. The loan repayments are based on taxable income, with repayments required from taxable incomes of $51,957 p.a. or more in 2018/19.
Other Liabilities consist of two loans which are interest free.
I’m a value investor with a taste for dividends. I’d like to live off the dividends from my portfolio when I reach financial independence. Every month I record the dividends harvested from my portfolio in my trusty Numbers spreadsheet and report them here for you to enjoy too.
May wasn’t the biggest dividend bounty I’ve ever received that’s for sure! Every little bit counts when you’re nurturing a dividend garden though. I’ll keep these dividends in my cash account until a new opportunity presents itself.
May Dividend Income
In May, I received dividends from one of my UK Listed Investment Trusts.