Chart updated to end of July in sidebar.
Stocks/cash increased $24,483 (+9.33%) to $286,819.
Retirement savings (SMSF etc) increased by $62,340 (+3.48%) to $1,853,481. I am rapidly approaching the current $1.9M 'transfer balance cap' which sets the maximum amount I will be able to transfer into 'pension phase' when I turn 65. I have already 'used up' $10K of my cap when I bought my deferred lifetime annuity product (that will start paying out a pension income stream if/when I turn 99). So my remaining 'cap space' is somewhere around $1.89M (the exact figure is calculated by the ATO, as only the unused cap space gets increased in line with the transfer balance cap setting. Any superannuation above the TBC will remain in accumulation phase. The money in 'pension phase' will have 0% tax rate applied to earnings and capital gains, but is also subject to the age-based minimum annual withdrawal (pension payment) rates (eg. 5%pa for age 65-74). The money left in 'accumulation phase' will continue to have 15% tax rate applied to earnings and 10% tax rate on long term capital gains. It is still worth accumulating money into super beyond the TBC, as even in retirement my personal marginal income tax rate is likely to be more than 15%. It won't be worth accumulating more than the $3M threshold beyond which the extra 15% tax would apply within superannuation (but I am unlikely to surpass that threshold).
Est. valuation of our home (my half) increased by $8,551 (+0.73%) to $1,181,547. But the 'Other real estate' (my 'lake house' and the investment apartment) decreased by -$28,597 (-1.33%) to $2,120,390. Both properties saw a decline in estimated value (based on local average sales prices).
The outstanding balance of the investment property mortgage decreased slightly to $999,991 due to some minor adjustment/correction in interest charged by the bank. The loan is still in the 'interest only' period of the mortgage, with another ~3.75 years remaining of the 'interest only' period. I'm continuing to try to build up as much cash in the 'offset account' as possible, so when the loan transitions to P&I the increase in monthly payments will be somewhat mitigated. I think the P&I monthly repayment figure will be based on the remaining 25 year term and $1M notional loan amount, so the monthly repayments won't be reduced, but having a large balance in the offset account would reduce the actual amount of interest each month -- so the repayments would pay off the loan a lot sooner. When the loan transitions to the higher monthly P&I repayment schedule I will already be receiving the 5% minimum 'pension' payment from my SMSF pension phase account, so I should have plenty of cash flow to cover the repayments. When I retire and no longer benefit from the tax deduction provided by negative gearing I might either pay off the outstanding mortgage, or else sell the property (and have a CGT liability).
Other assets (my online depository bullion account at Perth Mint, and the bullion value of my gold and silver proof coin collection) increased by $2,742 (6.39%) to $45,643.
The new 16% withholding tax rate specified by the ATO per my variation request has been applied by the payroll department, so I will accumulate the extra monthly cashflow into my offset account during the year (and not get much, or any, refund when I lodge my tax return next year).
Overall, NW increased by $69,521 (+1.57%) to $4,495,889 during July. A pretty great start to the new financial year. Combined with the unexpected increase in employer-funded life and TPD insurance cover (theoretically worth up to $295K to DW in the event of my unexpected demise), it was a very positive month financially speaking.
ps. I thought I had ordered a very cheap electric bicycle online (only $290 for a Bopzin Ridstar Q20 1500W) last week, but then when I double checked on the shipping info page after placing the order to see what the delivery timeframe was, I noticed that the dealer is US-based and only ships within the continental US (D'Oh!). So I expect my order will eventually be cancelled and the paypal charge reversed off. As the cheapest electric bikes cost A$1K or more (and the max power allowed in NSW is 500W for an eBike) I have instead bought a very cheap Repco Blade 25 Mountain Bike from BigW. I don't expect too much for $129, but it was cheaper to buy a new bike than pay a local bike shop to replace the tires and my old bike and do a clean and service. And even a $129 bike should be good enough to get some exercise riding on the trails in our nearby national park. There is a nice 20km (each way) ride with some spectacular views:
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