Wednesday, 16 April 2014

Net Worth Update (March 2014)

Current Net Worth
Assets
Feb-14
Mar-14
Change
% change
Savings Account 1
$4,598.46
$2,311.73
($2,286.73)
-49.73
Savings Account 2
$9,641.46
$4,306.46
($5,335.00)
-55.33
Savings Account 3
$37,769.00
$38,915.06
$1,146.06
3.03
Investment Linked Fund
$9,547.52
$0.00
($9,547.52)
-100.00
Stock Holdings
$9,525.00
$9,760.00
$235.00
2.47
Phillip Money Market Fund
$25,074.34
$40,095.18
$15,020.84
59.91
Physical cash
$1,000.00
$1,000.00
$0.00
0.00
Market Value Of BTO Flat (to be built in 2016/2017)
$750,000.00
$750,000.00
$0.00

Total Assets
$847,155.78
$846,388.43
($767.35)
-0.09





Liabilities




Home Loan
$617,500
$617,500
$0.00
0.00





Net Worth (including flat to be built in 2016/2017)
$229,655.78
$228,888.43
($767.35)
-0.33
Investible Net Worth
$97,155.78
$96,388.43
($767.35)
-0.79


Asset allocation
Weights
Cash or cash equivalents
$86,628.43
89.87%
Stocks
$9,760.00
10.13%
Total
$96,388.43


Highlights
  • Sold my investment linked fund. Left $1,000 in the fund to pay for insurance charges. The $1,000 was transferred to a cash fund as it's main purpose is to pay for insurance charges, which will be enough to pay off about 7 years of premiums before I top up. The $1,000 is excluded from my net worth calculation as it is not considered an investible asset
  • Celebrated girlfriend's birthday this month. Spent about $700 including dinner and a bag as birthday gift
  • Paid about $2,000 to pay off my notice period as I have tendered my resignation and will be starting my new job in May
  • Cash or cash equivalents now make up about 90% of my investible net worth

9 comments:

  1. Why are you paying off your notice period instead of serving them until it ends before u start ur new role?

    ReplyDelete
    Replies
    1. Hi B,

      The notice period in my current company is more than 1 month. The new employer is not able to wait that long as it is a replacement position.

      Cheers!

      Delete
  2. Do you realise yr 5m in 2043 is only worth 2.2m in today's dollars.Proportionately yr retirement cash income will be less than 9k/mth in today's dollars...it will be manageable but not luxurious!

    ReplyDelete
    Replies
    1. Yes i realized. The input variables (income, rent, dividends, etc) for all calculations are in real terms and not adjusted for inflation.

      Cheers!

      Delete
  3. Hi fellow future millionaire,

    I am currently a University student and aspire to be a millionaire in the future just like you. Really like your blog and like to give some input. I realized you have put majority of your assets into cash and cash equivalent. As you are probably two years above my age I feel that you should be taking a more aggressive approach in investing when you are young.

    Another input I like to add is that the valuation of your BTO housing is it based on at cost or a new valuation. If you are familiar with accounting you should probably value it lower of cost or net realisable value so as not to over estimate your asset value. In addition with all the cooling effects the government is implementing I doubt the value of your BTO is still that high.

    Lastly, you have no mention about any insurance you are buying. I would advise you to get some insurance as it is cheaper when you are young. I am by no means a insurance agent just a university student.

    Hope you consider my advice and in return I would like some advice on CFA. How is the level 1 exams and can you cope with it while juggling with work life. I am reaching my last year in uni and am interested in applying for CFA.

    ReplyDelete
    Replies
    1. Hi O.o,

      Thanks for your comment.

      My house and wedding will be coming soon and I do not wish to put a large portion of my cash into equities for now. Valuation of my housing is based on market value. My personal opinion is that market value will be more relevant in computing net worth. If property were to be valued at cost, the properties of the older generation would be grossly undervalued as they bought their houses in the 1970s/80s, where property prices were much lower compare to now. Market prices of comparable resale flats in the area are still around $750,000 as I have marked down 10% previously to be more conservative. You should look at the "Investible Net Worth" as it is more relevant.

      For CFA, it really depends on your educational background. If you major in Finance, you probably need 3-4 months to prepare for level 1. To be safe, start preparing 6 months in advance.

      Cheers!

      Delete
    2. Thanks for the info! Congratulations on your wedding and I wish you all the best!

      Delete
  4. wow, this is ballsy. how long will you plan to take to pay off your mortgage? i wished i had the balls like you did to take on such a big loan :(

    ReplyDelete
  5. hi there! i am about to bto soon, can you advise on the appropriate loan amounts to take?

    ReplyDelete

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