Net Worth Update

Net Worth Update (November 2016)


Previous update here.

Hey there! In a strange sense of déjà vu, November seemed to slink by quietly, like a whale migrating south for winter. Mostly I enjoyed the month, formally worked 4-days/week in my new job and scrambled on the other days to complete work for the University then get a little relaxation (no progress on the PhD, actually I’m now behind). I’ve been reading, and amcurrently half way through Burton Malkiel’s A Random Walk Down Wall Street which I’m finding most enjoyable. Oddly enough, it promotes passive index investing, suggesting that between the markets near efficiency and the hindrances of typical investor psychology (and we’re probably all typical) there is no point to actively trying to select equities. It’s a whole other can of worms, and although I think index investing is an excellent long term approach for many investors, I also believe in the long term (10+ years) there are individuals – widely and less widely known – who consistently ‘beat the market’. The trick is, figuring out which category (active or passive) we each fit in to, and the only way to know is to give it a well-researched crack.

Quick Summary: Cash increased after I reimbursed some business expenses and  paid myself a wage for the 6-weeks since I started work. It wasn’t a huge sum, but it was a pretty awesome milestone. Super was flat, and on that front I’ve transferred out of my advisor based fund. I’ve written about this a few times, here, here and here and ummed and aahhed about ceasing an advisor based service. Oddly enough, I made the push after speaking with my business accountant then talking with their financial advisor – so I’ve since moved all my retirement fund (less the contributions earned when I was in the air force) to an industry super fund. The portfolio is mostly investing in equities (international and domestic) with a small portion for property and bonds. The annual fees are far lower, and performance over the past 3 years has bettered my advisor based fund.

The only other change was a nice reduction in credit card debt, which once again I aim to keep low. I’m still looking at rentals but have started only making offers below the asking price, and will just see if I can snag a fair deal. Not rushing though. On to the numbers…

Cash: $9,325 increased 21.87%
Superannuation: $34,016 down 0.06%
Investments: $0 (nil holdings)
Other Assets: $11,558 down 1.20%

Total Assets: $54,899 up 2.83%

Credit Cards : ($218)  declined 92.20%
Student Loans: ($31,539) steady
Other Liabilities: ($21,999) steady

Total Liabilities: ($53,756) reduced 4.57%

Net Worth: $1,143 increased (INF!)


Net worth $1,143AUD for November, non zero value on right.

How was your financial November?

As always, thank you for following along!


8 thoughts on “Net Worth Update (November 2016)

  1. Just found your blog and read the previous month update this morning, now another one’s out! Good timing. I’ll have to read back to make sense of it all, but it sounds like exciting times. Just starting a business is a huge inflection point in your financial and life journey. Thanks for sharing with us.

  2. Congratulations on drawing a wage from your business, regardless of size.

    Regarding your industry Super fund, are you able to have some choice in your investment portfolio?

    1. Thanks for the congratulations!

      The fund I’m with is UniSuper, hey have some good info on their site re product mix, but basically it provides quite a bit of flexibility. In addition to standard mixes (conservative, balanced, growth etc) they allow investors to access a variety of low fee products from cash/bonds to REITS, domestic and international equities (with a range of themes/geographic exposures).

      I selected 20% pre mixed high growth and allocated the remainder myself, mainly to domestic/international equities, but also made small bond and REIT positions. I’ll be able to use the 20% pre mixed option as my own benchmark, should it drop as a % of the portfolio then my selections are returning above it, should it grow as a % of the portfolio then it’s out performing my selections.

      The main benefit is that my advisory based fund at times was 20-40% cash (due to the distributions etc) and so exposure to the market was low, and thus reflected in the returns, which were adequate for individual funds but below average for the super fund as a whole. Now I’m fully invested.

  3. Nice update WFT. Interesting that you went with UniSuper, sounds like the best choice, better than staying where you were. I’m currently with AustralianSuper but I’m looking at HostPlus at the moment – it has a much cheaper option to directly invest in shares. At some point we may make the switch, we’ll see.

    Although we’re not trying to beat the market average, we’re doing it our own way. We will buy some indexes in time, but at right the right time that makes sense. We think we can get safer and/or better returns.

    Love the increase in cash and decrease in credit card debt – nice job 🙂

    Good luck for the final month of 2016!


    1. Yours sounds like a good plan Tristan. I’m not sure if UniSuper has a direct share option at present,it’s something I’d also like to do once my balance is > $50,000. For now this seems a decent approach 🙂

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