We’ve done it!!! 🙂
Exciting news – after almost 5 years chasing Flamingo FI we have officially crossed the finish line and achieved our goal!
We are glad we’ve finally hit this milestone. Our accumulation phase is now all done and dusted and we are ready to move on to phase 2 of our plan: semi-retirement! All of this could not have come at a better time – our lives will change quite a bit over the next few weeks. Life is super busy for us at the moment, so I will share more about our plans in a separate post sometime soon. Watch this space!
For now, I just want to share the good news with you all. Thanks for all of your support over the last 1000 days (well almost, we actually finished with about 115 days to spare)! 🙂
Instead of boring you with the individual performance of the assets that make up our Flamingo FI nest egg I thought I’d quickly share how we plan on managing them over the next year or so:
Shares: We will continue dollar-cost averaging into index funds with the spare cash we have sitting in the IP offset account (see below). We buy fairly small parcels a couple of times a month at the moment and are happy with this approach. We will hold on to some but not all our employer shares so they account for about 5% of the nest egg. The proceeds of the ones we sell will be re-invested in Index Funds.
Investment Property: We plan on keeping the investment property over the longer term at this stage. It’s basically neutrally geared (the rent pays for the loan interest and rates, etc.). But because we have a P&I loan we contribute money every month that actually pays off the mortgage. We’ll just keep doing that for the foreseeable future.
Cash: Our current cash allocation is at almost 25% at the moment (all of this cash sits in our IP offset, so it’s still doing something by helping us pay the loan off sooner). It feels right to have a larger cash allocation in these uncertain times. Over the medium term, we would like to reduce the cash allocation to around 10% so we have a buffer for unexpected costs incurred by our investment property and to take advantage of buying opportunities. A portion of the nest egg also sits in a fixed interest account inside Mr. Flamingo’s super which we cannot move to any other asset class. It is CPI indexed so will just go up with inflation. Not great but there is nothing we can do about it.
That’s the plan for the next 12 months. We will review our asset allocation and selection once a year or so to make adjustments where needed. The goal is to keep the investments simple and straight-forward, we don’t want to spend too much time or effort on managing our investments while we enjoy semi-retirement.
I won’t be tracking our net worth on a monthly basis moving forward. Instead, I will probably publish a quarterly nest egg update for those who want to follow our journey from Flamingo FI to “traditional” FI and beyond.
This is what our current asset allocation looks like:
And here is our current split between assets inside and outside Super:
Normally I would write that we’ll see you back here for next month’s update but obviously, there won’t be one! Project 1000 is officially closed! 🙂