As would be expected for a high risk investment approach, my net worth dropped considerably last month, due to the global uncertainty regarding China growth, and the negative sentiment seen in stock markets around the world. My geared share portfolio was down a massive $37,302 (-26.16%), and my retirement savings (SMSF account balance) was down $19,920 (-2.79%) as it is largely invested in local and global stock markets via the Vanguard High Growth Index Fund.
On a more positive note, the estimated value for our home was fairly stable, with the 'correction' in Sydney house prices being more of a sideways move than an actual drop in average sales prices (so far).
Overall, my net worth decreased by -$57,110 to $1,788,873 (-3.09%). So far it isn't looking likely that I'll become a 'multi-millionaire' in 2016.
Subscribe to Enough Wealth. Copyright 2006-2016
The ups and downs of trying to accumulate a seven-figure net worth on a five-figure salary, loose weight, get fit, do a post-grad course and launch a financial planning business - while working full-time.
Monday, 1 February 2016
Tuesday, 5 January 2016
Net Worth: December 2015
Net Worth increased slightly during December (up 0.87% or A$15,731) due mostly to an increase in the estimated market valuation for our home. My leveraged stock portfolio saw little change over the month, and my retirement savings showed a slight decrease with a bi-annual tax payment offsetting the two employer contribution payments that were processed during the month. Depending on how the stock market performs during 2016, this might be the first year my net worth touches two millions and I become a 'multi-millionaire' ;) Unfortunately these days that no longer qualifies one as being 'rich' or UHNW (ultra-high net worth) -- for that you'd need ten or twenty million dollars of 'financial assets', not just a house in Sydney.
Subscribe to Enough Wealth. Copyright 2006-2016
Subscribe to Enough Wealth. Copyright 2006-2016
Thursday, 31 December 2015
2015 HSC results show how little effect the school has on student outcomes
Well, the 2015 HSC results are now out, and the usual 'school ranking' list made the front page of many Sydney newspapers, followed shortly thereafter by the usual disclaimers that the school rankings don't really mean anything. But that doesn't stop many parents thinking that getting their child into the 'right' high school from Year 7 will have a major impact on their eventual HSC results.
The actual results however, show that individual schools have very little influence on the results their students achieve -- the predominant factor influencing HSC results (in terms of % of 'Distinguished Achievement' (Band 6 or E4) subject results, and % 'All Rounder' (students with 10 units of Band 6 or E4 results in total)) is simply the ability level (as measured by the 'cut-off' selective entry test result to gain entry into the school) of the cohort of students that entered Year 7 six years earlier...
The figures below show that a school with a high 'cut-off' mark (selective schools entry test) to get into Year 7 will end up with a high percentage of Distinguished Achievement and All Rounder results when that group of students sits the HSC exam. For example, a school with a cut-off mark for entry of around 200-210 will end up with around 25%-45% "DA" and 5%-20% "AR" six years later. And a school with a higher cut-off mark (eg. 230-240) will end up with around 60%-75% "DA" and 30%-60% "AR".
The slight impact that a school can have is only apparent when a school consistently gets HSC results significantly above (or below) what you would expect based on the 'cut-off' score (ability level) that the students had when they entered Year 7. For example, NBSC Manly seems to consistently achieve slightly higher HSC results than would be expected from the 'cut-off' mark required to gain entry into Year 7 (However, even that may not be a 'real' effect - there are geographic reasons why some high ability students that might otherwise have gone to a selective high school with a higher cut-off mark decide to attend Manly. It's a long commute to get to James Ruse or Sydney Boys High from the Northern Beaches suburbs! So the correlation between 'cut-off' mark and average student ability level may sometimes be weakened by .local factors). And Sydney Technical HS seems to get a lower %DA in the HSC than one might expect from the entry cut-off scores for that cohort going into Year 7. But again, the %AR results for Sydney Technical are much closer to the expected range, so it might simply be that students choosing to attend Sydney Technical HS are not particularly strong in the compulsory English subject for the HSC, which might explain why the %DA results are depressed while their overall %AR results are more in line with the level of student ability.
[note: each school has four data points on the above charts, as the release of the 2015 results means I now how four years where I have the cut-off entry score and corresponding HSC results for that cohort]
These results also help to explain why private schools offer full and partial scholarships to attract students with high selective high school entry scores (and scholarship test score results, which are comparable) -- they are simply underwriting their future HSC results and school rankings.
It also becomes obvious why James Ruse will continue to come top of the school rankings (but might get pipped by Baulkham hills in a few years time), and which schools will continue to be at the top of such 'ranking' tables in future. You simply have to look at the current Year 7 entry cut-off scores to get a good estimate of the school's HSC results for 2021:
School (2015 cut-off mark for Year 7 entry):
Baulkham Hills (235)
James Ruse (230)
Sydney Girls (223)
Nth Sydney Boys (221)
Sydney Boys (220)
Nth Sydney Girls (219)
Hornsby Girls (216)
Fort Street (216)
Normanhurst (214)
Girraween (210)
NBSC Manly (206)
Sydney Technical HS (197)
One interesting side-effect is that selective high schools that do well in the HSC 'rankings' tend to become a more popular choice for parents choosing a school, so their 'cut-off' marks tend to increase, which in turn means a higher average ability level for the next cohort of students entering Year 7, and better HSC results five years down the track. This seems to be the trend at Baulkham Hills, and to a lesser extent at Fort Street.
Subscribe to Enough Wealth. Copyright 2006-2015
The actual results however, show that individual schools have very little influence on the results their students achieve -- the predominant factor influencing HSC results (in terms of % of 'Distinguished Achievement' (Band 6 or E4) subject results, and % 'All Rounder' (students with 10 units of Band 6 or E4 results in total)) is simply the ability level (as measured by the 'cut-off' selective entry test result to gain entry into the school) of the cohort of students that entered Year 7 six years earlier...
The figures below show that a school with a high 'cut-off' mark (selective schools entry test) to get into Year 7 will end up with a high percentage of Distinguished Achievement and All Rounder results when that group of students sits the HSC exam. For example, a school with a cut-off mark for entry of around 200-210 will end up with around 25%-45% "DA" and 5%-20% "AR" six years later. And a school with a higher cut-off mark (eg. 230-240) will end up with around 60%-75% "DA" and 30%-60% "AR".
The slight impact that a school can have is only apparent when a school consistently gets HSC results significantly above (or below) what you would expect based on the 'cut-off' score (ability level) that the students had when they entered Year 7. For example, NBSC Manly seems to consistently achieve slightly higher HSC results than would be expected from the 'cut-off' mark required to gain entry into Year 7 (However, even that may not be a 'real' effect - there are geographic reasons why some high ability students that might otherwise have gone to a selective high school with a higher cut-off mark decide to attend Manly. It's a long commute to get to James Ruse or Sydney Boys High from the Northern Beaches suburbs! So the correlation between 'cut-off' mark and average student ability level may sometimes be weakened by .local factors). And Sydney Technical HS seems to get a lower %DA in the HSC than one might expect from the entry cut-off scores for that cohort going into Year 7. But again, the %AR results for Sydney Technical are much closer to the expected range, so it might simply be that students choosing to attend Sydney Technical HS are not particularly strong in the compulsory English subject for the HSC, which might explain why the %DA results are depressed while their overall %AR results are more in line with the level of student ability.
[note: each school has four data points on the above charts, as the release of the 2015 results means I now how four years where I have the cut-off entry score and corresponding HSC results for that cohort]
These results also help to explain why private schools offer full and partial scholarships to attract students with high selective high school entry scores (and scholarship test score results, which are comparable) -- they are simply underwriting their future HSC results and school rankings.
It also becomes obvious why James Ruse will continue to come top of the school rankings (but might get pipped by Baulkham hills in a few years time), and which schools will continue to be at the top of such 'ranking' tables in future. You simply have to look at the current Year 7 entry cut-off scores to get a good estimate of the school's HSC results for 2021:
School (2015 cut-off mark for Year 7 entry):
Baulkham Hills (235)
James Ruse (230)
Sydney Girls (223)
Nth Sydney Boys (221)
Sydney Boys (220)
Nth Sydney Girls (219)
Hornsby Girls (216)
Fort Street (216)
Normanhurst (214)
Girraween (210)
NBSC Manly (206)
Sydney Technical HS (197)
One interesting side-effect is that selective high schools that do well in the HSC 'rankings' tend to become a more popular choice for parents choosing a school, so their 'cut-off' marks tend to increase, which in turn means a higher average ability level for the next cohort of students entering Year 7, and better HSC results five years down the track. This seems to be the trend at Baulkham Hills, and to a lesser extent at Fort Street.
Subscribe to Enough Wealth. Copyright 2006-2015
Saturday, 19 December 2015
Glide Pro Fishing Kayak
I recently saw a TV for kayaks on 'Christmas sale' at BFC (Boating Camping Fishing) and decided to check them out online. The inflatable kayak I'd bought from Aldi had been fun, but turned out to be too small to be usable for someone of my BMI (100+kg). I'll relegate that one for DS1 and DS2 to use.
After looking at the cheapest 'Glide Junior' kayak (on sale for $149, with a maximum capacity of 60kg) and the basic 'Glide Adult' kayak ($199, max. 110 kg) I initially decided to spend a bit more money for the more upmarket 'Glide Reflection' ($299, 2.92m long, max. 110 kg) that looked a lot more stylish. But having decided to spend $299 on a kayak I checked out the other available models and found that the 'Glide Explore Fishing' kayak (in Granite [mottled light-grey] colour) was available at the same price, but had nicer features and a maximum capacity of 160kg. So I placed an order online for that model, with pickup from my local BFC (a few km from my home) to save me the $120 delivery fee. Pickup was supposed to be ready 'within four business hours' of ordering online...
Unfortunately by the time my credit card payment was processed the next morning the last kayak of the model/colour I had ordered had just been sold at the local BFC store. I emailed a complaint to the online sales customer service and they replied very quickly that they'd arrange something to satisfy me. In the end it turned out that the 'Glide Explore Fishing kayak - Granite' wasn't in stock at any of their Sydney stores, so they offered to 'upgrade' my order to the 'Glide Pro Fishing Kayak' in Charcoal colour. This kayak has an RRP of $699 and was 'on sale' for $559.20, so I'm very happy with the 'upgrade', although it might be more 'yak than I actually need. It is quite a bit larger (3.65m long and weighing 31 kg) but has larger capacity (180kg weight) and comes with a foot-operated rudder system. A rudder probably isn't really necessary on a kayak under 4m in length, but it makes this 'yak look a bit more 'cool' (it certainly won't be 'cool' if left sitting in the sun too long -- the darker colour (almost black) makes it heat up quite fast - even after the ten minute drive home the hull was almost too hot to touch).
The extra length and weight don't seem to be an issue -- it still fitted nicely onto the roof rack of my Ford Escape (and the rear didn't stick out far enough to require a warning flag), and I had no problem lifting it onto the roof rack with another man at the BFC loading dock, or with getting it down with my 15-year-old son helping at home. At a pinch I could probably load and unload this 'yak by myself, but a mishap could easily see my straining my back or putting a ding in the car door, so it is generally a two-man operation.
Subscribe to Enough Wealth. Copyright 2006-2015
After looking at the cheapest 'Glide Junior' kayak (on sale for $149, with a maximum capacity of 60kg) and the basic 'Glide Adult' kayak ($199, max. 110 kg) I initially decided to spend a bit more money for the more upmarket 'Glide Reflection' ($299, 2.92m long, max. 110 kg) that looked a lot more stylish. But having decided to spend $299 on a kayak I checked out the other available models and found that the 'Glide Explore Fishing' kayak (in Granite [mottled light-grey] colour) was available at the same price, but had nicer features and a maximum capacity of 160kg. So I placed an order online for that model, with pickup from my local BFC (a few km from my home) to save me the $120 delivery fee. Pickup was supposed to be ready 'within four business hours' of ordering online...
Unfortunately by the time my credit card payment was processed the next morning the last kayak of the model/colour I had ordered had just been sold at the local BFC store. I emailed a complaint to the online sales customer service and they replied very quickly that they'd arrange something to satisfy me. In the end it turned out that the 'Glide Explore Fishing kayak - Granite' wasn't in stock at any of their Sydney stores, so they offered to 'upgrade' my order to the 'Glide Pro Fishing Kayak' in Charcoal colour. This kayak has an RRP of $699 and was 'on sale' for $559.20, so I'm very happy with the 'upgrade', although it might be more 'yak than I actually need. It is quite a bit larger (3.65m long and weighing 31 kg) but has larger capacity (180kg weight) and comes with a foot-operated rudder system. A rudder probably isn't really necessary on a kayak under 4m in length, but it makes this 'yak look a bit more 'cool' (it certainly won't be 'cool' if left sitting in the sun too long -- the darker colour (almost black) makes it heat up quite fast - even after the ten minute drive home the hull was almost too hot to touch).
The extra length and weight don't seem to be an issue -- it still fitted nicely onto the roof rack of my Ford Escape (and the rear didn't stick out far enough to require a warning flag), and I had no problem lifting it onto the roof rack with another man at the BFC loading dock, or with getting it down with my 15-year-old son helping at home. At a pinch I could probably load and unload this 'yak by myself, but a mishap could easily see my straining my back or putting a ding in the car door, so it is generally a two-man operation.
Subscribe to Enough Wealth. Copyright 2006-2015
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