Wednesday 4 August 2010

Net Worth Update: July 2010

Stock market gains during July resulted in increased valuations for my geared stock portfolio and our Self-Managed Superannuation Fund. Property valuations were not updated this month as sales data wasn't available. From the June Quarter statistics it looks like house prices have flattened out overall, but that may not correlate with the performance of my property portfolio as I'm only interested in the two postcode areas where I own real estate.

On paper a relatively modest 5% appreciation in house prices and 10% total return for the stock market during the current financial year would see my net worth hit the $1m mark again -- in reality the continued global financial crises means negative returns are a distinct possibility. In 20-20 hindsight I should have jumped at the chance to make a large undeducted contribution into superannuation (undeducted contributions below $1 million between 10 May 2006 and 30 June 2007 were tax-free) by liquidating my geared stock portfolio. Any stock investments within the SMSF would have remained ungeared during the GFC, minimising losses, and if I'd invested our super in term deposits my net worth would probably now be twice it's current amount. Ah, what might have been!

Assets___________$ Amount______$ Diff_____% Diff 
Stocks_*__________$11,861______$5,537____87.56 % 
Retirement_______$334,548______$9,913_____3.05 % 
Properties_______$922,625______$____0_____0.00 % 

Debts____________$ Amount_____$ Diff_____% Diff 
Home Mortgage(s)_$364,072________-$34____-0.01 % 

Net Worth________$904,961_____$15,484_____1.74 %

* the Stocks figure is portfolio value - margin loans. As my portfolio value (and margin loan debt) is around $500,000 relatively small movements in the stock market produce huge percentage swings in the net value of my stock portfolio each month.

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1 comment:

JoeTaxpayer said...

Good luck on working your way back.
12 months isn't bad, I lost the same amount (500K) in about 1 week in the the dotcon crash. Ouch. To be honest, I was still better off after the crash than prior, but watching that $$ evaporate still hurts.