Welcome to the latest Project 1000 update! This is where we share the progress of our 1000 day journey to freedom once a month.
New readers: If you have not read our plan yet, I recommend you do so now and then come back here.
May 2018 was a good month for us. Both Mr. Flamingo and I had some employer shares added to our portfolios. We both work for large US corporations listed in the NASDAQ. Each year, we receive shares (also called RSUs – Restricted Stock Units) from our employers as part of our bonuses. The catch: We don’t receive these shares straight away, the share packs “vest” bit by bit over four years. RSUs are basically like golden handcuffs. A lot of companies use them to improve staff retention. With new bonus shares added every year, it becomes less and less attractive to change employers because you see the large amount of unvested shares in your brokerage account (= all the money you would give up if you were to leave your company).
In May, we were also able to move some more cash into our high interest savings account. We are planning to buy an investment property in the near future, so we use all of our excess cash to save up our deposit at the moment.
All up, we got 2.5% closer to our 1000 day goal in May! Not bad at all!
Now let’s have a look at the individual buckets that make up our total goal:
Our Flamingo FI nest egg grew from 44.7% to 48.2% of its target size over the last month. Soon we’ll be halfway done with this bucket and can have a little celebration!
Our Australian shares didn’t perform very well in May. Unfortunately, we hold a lot of Telstra shares. As if the embarrassing triple-0 outage wasn’t enough, Telstra also received a rating downgrade. Ouch! You can see why one of our main goals is to get rid of our individual shares and stick with index funds. Fortunately, our employer shares jumped up a few percent over the month and made up for the downward movement of our Australian shares. Overall, our total share portfolio didn’t move in May, despite the large jumps and drops of the individual shares it contains.
I know the picture below looks like we had some decent investment gains in May, but we didn’t. The nice little upwards trend you can see is all from the savings we added and the vested shares we received:
This is what our current asset allocation looks like:
Our goal is to grow our investments outside of Super aggressively. Super now makes up 61% of our Flamingo FI nest egg (in April the number was 64%). Still not great, but things are going in the right direction.
Thanks for reading! See you back here for next month’s update!