The long term financial plan for the boys aims for each of them to have a net worth somewhere north of $100K when they turn 18 - providing a sound base for them to save for a house and fund their retirement accounts without too much stress.
There actual and projected net worths are plotted against age below:
The projection is based on the following assumptions:
Savings accounts.....1.2% real return
RSA account..........4.7% real return
stock portfolio......8.8% real return
superannuation.......8.8% real return
(invested in stock/geared stock funds)
- $1,200 pa contribution each (by me) into their superannuation accounts
- $1,500 pa government co-contribution each into their superannuation accounts
- $50 per month saved from their odd jobs/busking/pocket money etc.
The recent dip in DS1's graph shows how unlikely it is that the actual outcomes will be anything like the smooth projection.
Copyright Enough Wealth 2007