The $1000 Project update...post Coronavirus how is the portfolio looking? See for yourself...
- As we all know, COVID-19 has caused havoc around the world, in particular impacting most sharemarkets, with an average fall between 20-30%.
So to help capitalise on this market pullback for The $1000 Project, I have continued hustling, working most weekends, taking on extra jobs, being as frugal as ever and even decluttering my wardrobe and home in order to raise some extra cash. The income generated will be invested in more shares for The $1000 Project, all for the long term goal of building my long term passive income.
Since starting the project I have invested over $164,871, which includes a $50,000 Margin Loan and also prepaying $2,500 in interest on that Margin Loan. Which means, since starting the project almost 5 years ago, I have hustled over $117,371! As I type this number out, a wave of amazement, pride and even guilt stirs inside me. That is a HUGE amount of money, I have worked my backside off but maybe I could do more…cue guilt…but I digress.
Even with the coronavirus aftermath, the portfolio is currently worth $141,674 (including the $50,000 Margin Loan). However whilst the portfolio has a paper loss of approximately $23,000 (representing a 14% loss), it is only a paper loss. As long as I don’t sell, I haven’t lost anything.
Furthermore, The $1000 Project pays an estimated passive income of over $8,340 p.a. (net $5,840 p.a. after paying the interest on the Margin Loan). Which represents a before tax yield of 5.89% p.a., not including franking credits. Every time I buy some more shares, this estimated passive income stream increases. And each time I get closer to achieving my Mindful Money number which is approximately $80,000 p.a. for The $1000 Project.
Now below I am sharing with you inside The $1000 Project. Sharing with you the shares that I have purchased and invested in for long term growth and income opportunities. PLEASE PLEASE NOTE: This is PURELY for educational purposes, so please do not view this as personal advice, investment advice, or even product advice. It is general advice only, and to show you about the importance of not getting caught up in the noise and panic of irrational selling, the importance of diversification and the power of long term growing passive income streams. Please also note I am a High Growth Investor, who loves market volatility and my goals and investment time frame are all long term.
Here are the key points for you to see and understand in looking at My $1000 Project Portfolio:
* I have 25 different investments across a range of different industries, which includes ETFs and LICs – meaning that my portfolio is diversified!
* I never expect all of my stocks to perform well at the same time, hence the reason for diversification!
* All of the companies that offer dividend reinvestment plans, I am enrolled in. For the others where this is not available, I have the dividends paid into My $1000 Project Savings account, and manually reinvest them.
* I LOVE LICs as they really help diversify my portfolio, help reduce the volatility and take the pressure of deciding what and when to buy, as it is researched by a professional Investment Manager.
* I only invest in 2-dimensional assets i.e. assets that grow in value and pay dividends – I never invest in penny stocks or “speculative investments AKA “speckies”…EVER!
* I research the shares before I buy them. If I am not 100% sure, I keep educating and researching until I am comfortable with what I am investing in.
* All my shares are long term buy and hold – I have ZERO intention of ever selling them as they represent a growing passive income stream, which in the long run will cover my living expenses, giving me financial freedom and independence.
So look, touch and use for your long term financial inspiration and educational source.
Canna Campbell is the founder and director of SASS Financial Services, a boutique financial planning firm. She is a Channel 9 Financial Commentator, founder of financial media platform SugarMamma.TV and best selling author of The $1000 Project and Mindful Money.