Previous update here.
Quick Summary: I made a few changes in November, primarily in my Superannuation and Personal Investment accounts. The Dow finished November slightly above 24,272 points, an increase from 19,762 points since January. This is a robust 22.8% return before dividends. For comparison, the ASX300 is up 5.82% before dividends in the year to date. Although I have no skill in predicting the market, between the bitcoin rally and the stupendous bull market I can’t help but think we’re all maybe getting a little carried away. I shifted my Superannuation asset allocation from 100% equities to 16% cash, 54% international equities, 28.5% domestic equities and the remainder split between property, infrastructure and private equity.
The stock market rally could continue for years before a major downturn. At 16% cash, a market correction of say 30% would reduce my portfolio by 25.2%. This isn’t a massive improvement, but it helps me sleep soundly at night.
The Government also deposited a $500 super co-contribution and a $159 low income super contribution. This was very welcome!
Regarding personal investments, I shifted a little cash from my emergency fund to an international equities account with Saxobank. Although I didn’t realise it when I opened the account, I needed to make a $3,000 deposit for activation. Like a woodland mouse preparing for a long winter, I’m collecting as many nuts as possible to return the emergency fund toward $12,000 by year end. The upside is that my investment portfolio can now expand to individual international equities. There have been a number of companies I’ve been interested in over the past few years that are offshore (Apple, Alphabet, Berkshire, Tencent, Volkswagen) – it’s exciting to now have access to the world market.
Aside from this, loans and credit card debt reduced slightly. Overall net worth is up nearly twenty-five percent, which is superb. I had a mini-goal to breach $10,000 nw by Dec 31st – certainly on track.
Savings Rate: 32.70%
Cash: $9,947 decreased 29.17%
Superannuation: $42,192 up 3.55% (market return + $746.51 investment)
Investments: $15,901 up 34.62% (market return + $3,438 deposit)
Other Assets: $10,000 down 1.20%
Total Assets: $78,039 up 1.72%
Credit Cards : ($2,047) down 13.50%
Student Loans: ($32,305) steady
Business Loan: ($12,250) reduced 2.39%
Other Liabilities: ($21,500) steady
Total Liabilities: ($68,102) decreased 0.90%
Net Worth: $9,937 increased 24.20%
With 2017 coming to a close, did you grow your wealth in November?
As always, thanks for following along!
- Cash consists of online savings accounts. I moved away from carrying cash in Q1 2015 and make 95% of my transactions electronically, for more accurate and up to date record keeping. I have a small transaction account holding around a tenth of my cash funds with the balance held in an ’emergency fund’ and a smaller account for rent savings/payments, both in modest interest bearing accounts (2-3%p.a.).
- Superannuation is the Government mandated retirement savings system in Australia
- Other Assets consists of one car at market value, depreciating monthly.
- Student Loans consist of the HECS/HELP debt provided by the Australian Government, indexed to inflation. The loan repayments are based on taxable income, with repayments required from taxable incomes of $55,874 p.a. or more in 2017/18.
- Other Liabilities consist of two loans which are interest free.