Monday 1 December 2008

Net Worth Update: November 2008

Another exceptionally poor month. My net worth as at 30 November decreased by another -$92,546 (-12.13%) during the month to $670,548 (AUD), due to the continued losses in my geared equity investments (down by $39,207 (64.88%) to only $21,222. At one point during November my stock portfolio had negative value, with my margin loans and HELOC being greater than the value of combined portfolio. The estimated valuation of my share of our real estate assets also decreased significantly this month, by -$43,523 (-5.31%). The balance of my half of the mortgage decreased by $234 to -$367,554/ The RBA interest rate cuts over the past three months have reduced the monthly interest payments, reducing the amount of monthly "redraw" required to cover the interest payments while DW is working part-time. There is speculation that the RBA will cut rates by another 0.75%-1.25% at their next monthly meeting, with the scope for further interest rate cuts to offset the effects of the global recession increasing as inflation fears rapidly subside.

I had to sell off some of my Australian stock portfolio this month to avoid margin calls, and my margin utilisation is now slightly below 90% on all three margin accounts.

The balance of my retirement account also decreased this month, by -$10,050 (-4.00%) to $241,186, as it's invested about 98% in the Vanguard Lifestages "High Growth" fund which is allocated mostly to domestic and international equitites. The market declines were largely offset by two month's worth of employer contribution being deposited into our SMSF account this month.

Subscribe to Enough Wealth. Copyright 2006-2008

No comments: