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Tuesday, 5 January 2021

Net Worth: DEC 2020

My monthly Net Worth calculation has been updated in NetWorthShare for end of December. The stock markets were volatile during December but ended the month fairly flat, so my stock portfolio ended the month at $309,781 (down $1,894 or -0.61%) and my estimated super balance was $1,284,074 (up $5,595 or 0.44%). We've nearly finished the transfers back into Vanguard High Growth Fund from the ANZ V2 cash account, after liquidating the Growth and Conservative investments in mid-December and then having to BPay the cleared funds back into the Vanguard High Growth retail fund (closed to new investors) via $100K/day BPays. The final BPay was done on 1 Jan, and there is also a Vanguard distribution for 31 Dec that is in the process of being credited, so those adjustments won't affect the SMSF calculations until end of Jan.

Our estimated house price was slightly down (-$1,884 or -0.22%) for the month, but the Sydney residential real estate market is showing signs of strength, and a few forecasters have started predicting rises over 2021 and 2022. Hopefully the valuation of my investment unit will be higher than the 'off the plan' price by the time construction is completed in Q2 2023 (when I'll need to get a mortgage to pay the balance of the purchase price).

My net worth figure increased very slightly (by $2,152 or 0.08%) overall, to $2,728,126. 

During 2021 my NW increased from $2,442,188 to $2,728,126, which was a gain of $285,938 or 11.70%. Considering 2020 was a global pandemic and my salary package is only around $110K before taxes (and my financial planning business had no customers and cost me around $18,000 to run, plus I paid uni fees for my masters degree of around $12,000) I was very happy with my financial progress for 2020.

In 2021 I will finish off the final three subjects for my Master of Financial Planning degree (so the uni fees I pay will reduce to about $9,000 for 2021) as well as a couple of specialist financial planning subjects and the Advanced Diploma of Financial Planning from IIT (that I've already paid the fees for). Hopefully I will also get a few paying financial planning clients during 2021, so the net loss of my financial planning business should reduce (I'd like it to cover the running costs, but that may not happen in 2021). House prices in Sydney are expected to rise slightly during 2021, and our home loan will continue to slowly reduce. Depending on how the markets perform during 2021, I might hit $3m NW by the end of 2021... 

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