Tuesday 3 January 2017

Net Worth: December 2016

Happy New Year! The Trump/Santa Claus Effect saw global share markets continue to appreciate during December, resulting in my geared stock portfolio and my retirement savings each increase by more than $30K during December. There was no price data available for our suburb (apparently due to few people willing to sell their properties while the hospital precinct rezoning is being finalized, rather than a lack of buyers), so our 'estimated' price for our home was unchanged last month. As I didn't make any capital improvements to my rural property, than too saw its 'book' price remain unchanged.

Overall, my net worth just passed the A$2m mark. So I'm officially a 'multimillionaire' (for the moment). Just goes to show how little 'millions' are worth these days. I still have a (small) mortgage, I still take a packed lunch to work, and I'm still a 'wage slave' hoping that I don't get retrenched before I reach my planned retirement age (~67-70). As I'll be 'too rich' to qualify for a part-pension or benefits card when I reach retirement age, having a reasonably comfortable retirement will rely on having my mortgage paid off and having retirement savings that (at current interest rates) will generate around $25,000 pa income. Hardly the jet-setting lifestyle the term 'multimillionaire' normally brings to mind? If I do keep my job for another 10-15 years I should be able to build up my retirement savings sufficiently to have an after-tax income in retirement close to my take home pay. One side-benefit of making large salary sacrifice contributions into superannuation is that one is acclimatised to a more modest 'pay packet'.

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