Project 1000: July 2018 – 943 Days to Freedom

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. 

Overall Goal

June 2018 was another solid month for us. We didn’t receive any shares from our employers this month, but we sold some shares and did a bit of “reshuffling” before the end of the financial year. Other than that, June was pretty uneventful investment-wise.

All up, we got 1.5% closer to our 1000-day goal in June. I’m happy with this result.

Now let’s have a look at the individual buckets that make up our total goal:

Our Flamingo FI nest egg grew from 48.2% to 50.1% of its target size over the last month. We are halfway there! Woohoo! 🙂

Flamingo FI

Our Australian shares didn’t perform well in June, just like in May. After more bad news from Telstra and another share price drop, we made the decision to cut our losses and sell. Don’t get me wrong, I still think that Telstra is a decent long-term investment, but in our situation, I believe selling was the better option. There are two main reasons we decided to sell:

  • While we are saving up the deposit for the investment property, need all the cash we can get. At the moment, our deposit sits in a savings account earning only 3% per annum. Obviously, would like to put this money to work rather sooner than later. The more we are able to add to the deposit every month, the sooner we can buy.
  • We made some gains earlier in the year and would have had to pay a fairly large amount of Capital Gains Tax. We decided that it makes sense for us to sell the shares to offset our capital gains and put the proceeds towards our deposit.

We also sold some other smaller holdings and now don’t own any shares except our employer-sponsored shares on the NASDAQ.

Since we were able to offset some gains with this month’s share sales, I was able to move some of the money set aside for our CGT bill into our savings account, along with our regular monthly savings.

This is what our current asset allocation looks like:

Our goal is to grow our investments outside of Super aggressively. Super still makes up 61% of our Flamingo FI nest egg, but the share component is now only 8% and our cash savings are growing.

Thanks for reading! See you back here for next month’s update!


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