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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