The remaining amount shown for 'properties' and 'home mortgage(s)' is my half of these figures. As usual, I don't include assets or liabilities belonging to DW, DS1 or DS2 in my net worth figures.
|Assets||$ Amount||$ Diff||% Diff|
|Debts||$ Amount||$ Diff||% Diff|
Paying off the investment property mortgage has freed up about 1/4-million dollars of available credit in my 'portfolio loan' account (which is secured against our house title), so I could, in theory, deposit $250K into my leveraged equities margin loan account by drawing down on this loan account, and then purchase another half a million dollars worth of stocks (or managed funds, or index funds) on margin, at a 'modest' LVR of 50% (from the point of view of the margin lender). A bull market over the next decade could see the ASX200 double, as the world fully recovers from the GFC, which would result in a windfall gain of half a million dollars. But on the other hand, a stagnant market over the coming decade (as happened in the 70s) would see me throwing all my available cash flow away simply servicing the debt. And a decline in the stock market would erode my net worth considerably.
I suspect I have reached the limit of my personal risk-tolerance, as I will feel more comfortable using my cash flow to pay down some of my existing margin loan balances, and/or contributing additional amounts into my SMSF. While I won't get rich with that approach, there is more certainty of achieving a comfortable lifestyle for my retirement. I already have several hundred thousand dollars of 'other peoples money' invested via my geared share portfolio, plus we have a small amount of gearing in our self-managed superannuation fund via our IQ CFD investment. Borrowing even more to invest in the stock market seems too high-risk at this of my working life, and would not leave much room for misadventure (such a ill health or losing my job). I'll leave it to DS1 and DS2 to create a 'family fortune'. ;)
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