Skip to content September is historically known as a rough month for equity markets. I honestly thought we’d see some weakness, but this year it surprised everyone by being quite bullish. On top of that, my tax return came through at a whopping $17k which was a game changer for the month. With those funds, I cleared my Fundlater loan in full (around $3,000) and topped up my Wifey portfolio with $5,000. Knocking out that high interest debt was satisfying, especially since Fundlater’s interest doesn’t fall when rates get cut.
The other big milestone? I landed my Melbourne investment property. I ended up stretching the budget a bit, but the market is hot right now and the property is in Berwick, a well-established suburb in South East Melbourne. I’m confident it will be worth it in the long run (hopefully!)
Superfund – Hostplus
- Balance: $225,644 (up $2,516)
- Comment: I transitioned to a more conservative indexed capital stable option last month as I prepare for my SMSF move. That proved costly this time as the market rally meant I missed out on gains. A bit of short term pain, but I’ll stick with the long term plan.
Options Trading – Moomoo
- Balance: $9,629 (up $1,493)
- Comment: Some strong plays this month with WBD, NVO, INTC and RCAT calls. A few home runs here boosted my account nicely.
Passive ETF – Fundlater
- Balance: $11,353 (up $52)
- Debt: $0 (paid off in full!)
- Comment: Clearing this debt with my tax return was nice. The plan is to liquidate this portfolio in November (for CGT discount) and consolidate into other strategies. My accountant wasn’t thrilled with the extra work that this portfolio created this year.
Long-Term ETF – NAB Equity Builder
- Balance: $181,035 (up $4,716)
- Debt: $101,270
- Equity: ~$79,764
- Monthly repayment: ~$1,500 (around $600 interest, the rest to equity)
Wifey Portfolio – Betashares Direct
- Balance: $72,700 (up $1,432)
- Comment: Consistent DCA continues, with $1,000 going in every fortnight from salary. Plus a $5,000 boost from my tax return!
Wifey Portfolio – Stake
- Balance: $30,100 (down $375)
- Comment: A small dip this month, but September delivered a dividend of $200.27.
Total Portfolio Summary
- Gross Funds: $530,461
- Net Equity: $429,190
- This Month’s Growth: +$9,834
The journey continues. September turned out far better than I expected, with strong equity markets, a big tax refund and finally purchasing my Melbourne investment property all coming together. October will be all about finalising the property settlement and preparing the transition to SMSF!
Comment for $5K lesson posted here as comment function does not work properly. sorzzz
This $5K lesson is so valuable—I’ve been wrestling with the exact same temptation to de-risk or switch out of a growth option, especially with market highs.
My main comfort has been knowing that, with superannuation, switching between Hostplus options doesn’t trigger a personal CGT event, as the unit price of the premix product already incorporates the underlying tax position. However, that only addresses the tax, not the market timing risk!
I agree with your takeaway. A better strategy would be to use a more balanced, staged approach. I think proportioning the switch using the Hostplus splitting function (to allocate the ‘before’ and ‘after’ balances over time) is the sensible way to mitigate the risk of exiting at a single, unfavourable point.
Thanks for the wake-up call!
Yes it was indeed a costly move which worked against me! Indeed with industry funds, the cost of switching is already taken into account given it is a pooled fund.
Taking this lesson away, I just utilised all my funds in my SMSF straight off the bat. If market tanks, then so be it! I want to be fully invested for the long term.