Things have gotten interesting the last couple of weeks, haven’t they? The coronavirus is spreading across the globe and people are stockpiling toilet paper. When I turn on the news, the first thing I usually see are people in protective suits spraying disinfectant on empty streets. The media is certainly doing its bit to create panic. If it bleeds, it leads…
Two weeks ago the panic reached the financial markets and things have been going south ever since. Volatility is high and no one really knows how long it will take until the virus is contained (if we manage to contain it). Eerie times.
The question is: should we panic? Probably not. We’ll all have to just see how this plays out, keep calm and wash our hands. If you find yourself worried about what’s going on I recommend you check out Mr. Money Mustache’s latest article: Lessons in Fear and Wealth from the Coronavirus.
Mr. Flamingo and I will just stick with the program, invest regularly and make sure we’ll always have a generous financial buffer in place. I feel that that’s really all there is to do at the moment.
Now, let’s get into our March update.
I usually crunch our numbers for the monthly Project 1000 updates on the last Saturday of the month. In February, I briefly considered doing it a week early as we had a few events coming up on the last Saturday. In the end I had a quick look at our numbers on the 21st but didn’t end up preparing the full report. So I sat down on the 28th to finish it. What a difference a week can make! On the 21st it looked like we had reached almost 85% of our Flamingo FI target. One week later it was down to 80.1% of our target (up from 78.3%).
This is still considering a good result considering what’s going on in the markets. The only reason we are up for the month is that the estimated value of our investment property went up by a decent amount. Otherwise it would be a different story and the Flamingo would be heading down the hill. Lucky!
Shares: In February we bought a small parcel each of VTS and VAS – before the market tanked unfortunately. Oh well. Overall we are down around 5%.
Investment Property: The estimated market value went up about 1.5% last month. As I’ve mentioned a few times before I don’t really take these estimates too seriously, but it is always nice to see things going in the right direction.
Cash: We added our regular monthly cash savings amount (used for our VTS and VAS purchases).
This is what our current asset allocation looks like:
And here is our current split between assets inside and outside Super:
Thanks for reading! See you back here for next month’s update!