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Monday, 1 March 2021

Net Worth: FEB 2021

My monthly NW estimate has been updated in NetWorthShare for the end of February. The stock markets performed well for most of the month, but then suffered a sell off in the last few days of the month but still ended up slightly overall for the month. I've added my recent Investment Bond investment to my 'stocks' total, and also included my investment in the 'Spaceship' online investment fund (I started that last year but seem to have not been including it in my NW calculations). Overall my 'stocks' figure was up $20,134 (6.54%), but the monthly movement has been exaggerated by the sudden inclusion of the Spaceship fund value (about $6,122).

Our estimated house price for February (my half) increased by $5,182 (0.62%) to $842,111. Due to low interest rates and government stimulus measures relating to first home owner grants and subsidies, the residential housing market in Australia is currently quite buoyant. Around this time last year the 'experts' were predicting falls of up to 30% in house prices, now those same 'experts' are predicting a rise of 10%-20% in Sydney prices over the next two years. Unit (apartment) prices are not a strong as free-standing houses due to the impact of Covid-19 border closures on migration to Australia. So my 'off the plan' unit probably won't increase much in value before construction is completed and I need to get a mortgage to fund settlement in Q2 2023. 

The value of my retirement savings rose significantly during February, to $1,307,671 (up $20,175 or 1.57%). Hopefully I will be able to reach the TBC ($1.7m from 1 July this year) by age 65 when I can transfer that amount from accumulation phase (where the tax rate is 15%) to retirement phase (where the tax rate is 0%). Any amounts above the TBC will remain in accumulation phase.

Overall, my NW reached $2,775,755 by the end of February - up by a healthy $45,758 (1.68%).

Accumulating wealth starts out like someone learning to swim by madly kicking their legs while holding onto a kick-board for grim life - lots of effort for little visible progress. But eventually you reach the stage where the portfolio growth exceeds the amount you are adding each month, so the situation is more like sitting in a kayak gliding along and only having to make the occasional course adjustment and put in a few strokes to keep things moving along. I suppose when I'm retired it will be a bit like sitting on a deck chair of a cruise liner - mostly just relaxing and watching the ship steam ahead, but sometimes still getting a bit anxious when there is a storm and the seas get rough.

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