Portfolio Update – Almost Total Change Of Plans!

Portfolio Update

Well, well, well, yet again it has been too long.

My entire portfolio has shifted.

I started out on the path of dividend investing. I really liked the idea of those cash dividend payments. This is a perfectly fine way of building your portfolio and nest egg if like me you had a 25-year timeframe to do so.

After almost 2 years I came to the conclusion that I can set my sights higher and get there much quicker!

I started investing in crypto off the back of mining with my current GPU, which started generating me around £100 per month passively.

With my interest peaked, I started heavily researching the whole crypto-space and started accumulating an array of coins.

In the midst of a bull run in the crytpo-space, I had more than doubled my money in less than a year. Meanwhile, the dividend portfolio had more or less sat still – aside from the dividends.

Crypto Portfolio

My crypto portfolio now sitting at around £21,000.

Explosive growth of around 120% in less than a year.

Better still all the staking rewards and interest payments across my portfolio are paying me at the current prices a mind-boggling £800-£1000 per month in rewards/interest.

It seems unbelievable but returns off 30%-100% APY are very common, be aware that volatility is far more extreme than stocks though.

Most of the money I put in has been taken out of the riskier plays, so I am effectively playing with house money.

After many hours of research, I had the confidence to put more and more money into crypto and it has paid off massively for me.

Currently, I am taking some of the rewards as profit and reinvesting the rest. Unlike stocks the rewards are typically paid daily as well, to negate some of the volatility risks, rewards can be claimed daily and swapped into a stable coin such as USDC – It’s pegged to the US dollar so does not fluctuate.

Hopefully, when the bear market comes I can swap to stable coins and wait for the bottom (or at least a severe dip) that way I can start accumulating at good prices again.

Stocks and Shares ISA Portfolio

I had gotten up to around an average of £83 per month in dividends with my stocks and shares ISA.

That withholding tax was really getting to me, and my new vision for a much shorter timeframe until retirement.

The lowish yields combined with 15% tax meant that the 25 years or so timeframe would be the case.

So I have switched to putting more money into the UK dividend payers, yes the capital growth will not be as good, but the much higher dividend yields make more sense when targetting around 10 years. 10 years is my new goal.

My stocks and shares ISA is sitting at around £19,000.

Most of that is now concentrated on a handful of high dividend payers in the UK. Legal and General, Rio Tinto and British American Tobacco. Along with a much larger position in Tesla.

Whilst Tesla does not pay a dividend. After much research, the price targets for the next 10 years would leave me with a massive chunk of my “wanted” £240,000.

Alongside my ISA I also put around £2000 into SIPPs/LISA. That I will not be able to touch until 57 and 60 for the latter. I don’t plan on adding much more but will just let the 30 years of compounding or more if I don’t touch it, do its work.

With compounding alone, that should turn into around £16,000 based on 7% average returns. Not a great deal, but a nice little side pot.

I will also have my workplace pension as well from 57.

Property Ladder

Finally, I am in the process of getting on the property ladder, with my offer accepted and well underway.

Luckily I have been able to save this cash pot on the side using a help to buy ISA. I am now in a very fortunate position to have put 15% down on the property and have around £40,000 in investments. Not including my workplace pension.

If my investing can grow to close to that £240,000 figure in 10 years time. I will be able to rent out the property and the profit from that will make up any shortfall.

At the moment if I rented the property after all fees etc I would only yield around £50-£100. Once you factor in me having more equity and rental prices going up at a conservative 2% each year. I think in 10 years it would net me around £200 per month.

Believe it or not that £200 in large parts of the world would pay for basic accommodation for the month. It also means my portfolio would only need to be around £190,000 to pull the other money needed. That’s based on 5% withdrawal and £1000 per month budget.

Start by travelling to very cheap places for a while. Letting the portfolio grow some more, negating that pesky sequence of returns of risk.

After about 2 years I am now about 17% of the way to my target. Closer still if I include my personal and workplace pensions.

Whats next?

I’m under no illusions the crypto portfolio will double so easily again. However, if it does, the dream could come sooner. For now, though I am generating well over £1000 per month passively, that’s without Matched Betting.

Most of the good offers I exhausted and the end of the football season came. Those floats in the bookie’s accounts and markets went straight into my crypto portfolio!

Hopefully, I get out of the bull run with most of the profits and then make even more explosive gains on the next cycle.

If you have any questions just send me an email or better still comment on here to help others.

Just a quick update!

As always,

Thanks,

Sean

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