Tuesday 2 February 2021

Net Worth: JAN 2021

My monthly NW estimate has been updated in NetWorthShare for the end of January. The stock markets performed well for most of the month, but then suffered a sell off in the last few days of the month to end up pretty much where they started the month. My 'stocks' figure is also affected by the payment of Q1 uni fees (around $3,750 for one subject) that I paid from the portfolio loan account (as they course is self-education related to maintaining my existing employment as a financial planner, the interest is tax deductible, so I can use my portfolio loan for this and not have to worry about any complex pro-rata calculation of how much of the loan interest is tax deductible). Overall my 'stocks' figure was down -$1,818 (0.59%), but excluding the borrowing for the course fee my 'stocks' figure would have increased by around $1,500 during January.

realestate.com.au hasn't updated the house price data for January sales yet, so our estimated house price remains unchanged for January. The overall house price index for Sydney continued to rise during January, so there probably was some slight increase in January, but I can't calculate a figure from the available sales data. Home loan balance continues to slowly decrease each month.

The value of my retirement savings rose slightly during January, to $1,287,496 (up $3,422 or 0.27%). The transfer balance cap (TBC) and total superannuation balance (TSB) cap will increase (due to CPI) from $1.6m to $1.7m this coming July, so if I want to make an undeducted contribution of $300,000 using the 'bring forward' rule I would still be able to do so for the next couple of years. After reaching my TSB I'll only be able to make concessional contributions (SGL and SS) until age 70, and from age 70 only SGL contributions can be made into superannuation. The only exception would be the ability to make a 'downsizer' contribution of up to $300K if we sold our home (and the normal contribution caps do not apply to the downsizer contribution).

Overall, my NW reached $2,729,997 by the end of January - up by a modest $1,871 (0.07%).

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