This marks the beginning of my journal to FIRE! I’ll be tracking my current balances across various investments and documenting the moves I’ve made. The overall market has started to show volatility with Trump back in office, and I saw an opportunity to make some trades. Looking back, I probably jumped in too early, but I want to stay mechanical and trust in the long-term upward trajectory of the market.
I’ll primarily be documenting my superfund, ETFs portfolio, and active trading account, which I view as more of a “satellite” investment.
Disclaimer: I am not recommending any products mentioned below. You should conduct your own research and seek independent legal, financial, or taxation advice to understand how this information may apply to your unique circumstances.
Deploying NAB Equity Builder
I had previously been approved for a $200k credit limit on my NAB Equity Builder, which I planned to utilize during a market downturn to enter at lower prices. This month felt like the right time! For those unfamiliar with this product, it differs from traditional margin lending in that you won’t face margin calls requiring you to top up funds when the market drops. The simplest way to explain it is that it’s “borrowing to invest,” much like taking out a mortgage to buy property. The loan term is structured similarly to a principal and interest (P+I) loan.
Since I’m nowhere near purchasing a property, I’ve decided to use leverage to grow wealth. I borrowed up to the maximum Loan-to-Value Ratio (LVR) permitted by NAB (noting that every ETF has a different LVR).
| Investment | Balance | Change $ | Change % |
|---|---|---|---|
| Superfund | $175,336.58 | ||
| Moomoo (Options) | $14,936.00 | $1,819.00 | 13.87% |
| Fundlater (ETFs) | $10,364.00 | -$292.00 | -2.74% |
| NAB Equity Builder NDQ | $20,000.00 | ||
| NAB Equity Builder BGBL | $30,000.00 | ||
| Total | $250,636.58 | $1,527.00 |
ETF Investments: Why NDQ & BGBL?
This month, I invested in two ETFs: NDQ and BGBL. Here’s my rationale:
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- BGBL (Betashares Global Shares ETF): I believe international equities will continue to outperform the ASX 200. I considered VGS (Vanguard MSCI Index International Shares ETF) but ultimately chose BGBL due to its lower management fee (0.08%). It also focuses solely on developed markets and has slightly less U.S. exposure, which complements my NDQ investment.
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- NDQ (Betashares Nasdaq 100 ETF): I’m personally quite bullish on the technology sector and believe the MAG7 will continue to drive market growth. NDQ gives me large exposure to these companies.
The Breakdown
My “down payment” was 25% for BGBL and 30% for NDQ. For the 50k investment, I contributed $13,500 of my own cash and borrowed $36,500. Of course, I ensured that my cash flow comfortably covers the required P+I payment.
Well, that wraps up my February update! If you have any questions or want to discuss, feel free to reach out!
