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Net Worth Report: Quarter 1, 2019

Posted by on 10 April 2019 in Net Worth Reports

It’s been a long time between drinks! Here’s the first Net Worth Report since we changed from a monthly to a quarterly format.

It was a very successful quarter, with the share market returning well and some unexpected income. And I took the opportunity to refinance my mortgage to a more reasonable rate!

And in the background I’ve been working on something that I think you’ll all like. A new online calculator. The first of it’s kind. I’ll tell you all about it later in the post!

Profile & Loss Statement

The table below shows my profit and loss statement for the first quarter of 2019. I made significant progress over the quarter and am now about $31,000 ahead of my target (to achieve retirement by 2033).

The main reason for the progress is a gift/early inheritance of $10,000 from my grandparents. This was completely unexpected and ridiculously generous. I am very fortunate to have such wonderful family in my life.

In addition to that, I refinanced my mortgage from a Big 4 bank to a regional bank. I was able to reduce my mortgage comparison rate from almost 4.00% to about 3.58%. This should save me more than $50,000 over the remaining life of the loan. I can’t recommend doing this enough!

The switching process was somewhat drawn out, which meant that I didn’t pay any mortgage repayments in March. This reduction in expenses also helped my get ahead of my retirement target.

Net Worth Report First Quarter 2019 Profit & Loss Statement

Over the quarter I was able to save about $24,750, which is a savings rate of 61%! Of course, the gift helped; without it my savings rate would be closer to 40%. Even so, that’s still above my goal of a 35% savings rate 🙂

Balance Sheet

The table below shows my balance sheet over the first quarter of 2019.

It was a good quarter of asset growth, due to the additional cash and good asset growth in my investment and superannuation accounts. The ASX200 has actually returned over 10% YTD!

At the same time, my mortgage liability increased slightly, due to refinancing the mortgage to a higher balance than what I originally owed. And I’ve started to churn credit cards to take advantage of frequent flyer bonuses, which has added to my liabilites. Most people know all about this, but I might do a quick write up soon anyway.

Net Worth Report First Quarter 2019 Balance Sheet

Over the quarter I was able to increase my net worth by over 20%! You can see the big jump on the net worth summary page. Again, it was mostly driven by the once-off gift that I received. Without that, I would have increased my net worth by closer to 12%. Still not a bad effort!

And In Other News…

We had such a good response to our Safe Withdrawal Rate Series and a bunch of readers asked how they could calculate their own safe withdrawal rate. So in the background, we’ve been working on an online safe withdrawal rate calculator!

The calculator will use the same data and calculations as we used in the safe withdrawal rate series. And you’ll be able to change inputs (e.g. portfolio mix, retirement length, target portfolio balance, expense ratios) to suit your own circumstances.

Here’s a sneak preview of a very rough prototype:

If you have any specific requests for features that you’d like in the calculator, please leave them in the comments below. We expect to have the first version completed in the next couple of weeks, so stay tuned! 🙂

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There are 15 comments on this article

  1. Avatar for Dan Montgomery

    Ms FireMum @ A Family on FIRE

    Great news all around, and well done for being ahead of your target!

    I personally am quite excited to see the SWR calculator prototype. Would you be able to add Global equities instead of US equities, if the data is available? Also it would be great to have a returns vs standard deviation chart – again if time permits.

    Thanks very much for your work Dan. I really enjoyed reading your SWR series and got a lot of value out of it – it’s great to have SWR explored and thoroughly analysed from an Australian perspective.

    • Avatar for Dan Montgomery

      Dan Montgomery

      Thanks Ms FireMum (and Russell)!

      I agree that global data would be a good addition to U.S. market data. Unfortunately I haven’t seen anything that’s freely available yet but I’ll definitely keep a look out!

      And thank you for the kind words and support. It’s funny, I can see people viewing my site on Google Analytics but I don’t often get to chat to them. It means a lot to hear that you’re getting value from the site 🙂

  2. Avatar for Dan Montgomery

    Russell

    Hey Dan, loving the website! I agree with Ms FireMum, for the calculator to include global equities (perhaps an all-world Ex-US?) would be a neat feature. I understand if it’s too fiddly though!

    Keep up the great work!

  3. Avatar for Dan Montgomery

    Aussie HIFIRE

    Congratulations on the increase in wealth Dan, nice to have that strong move up in equities. And great work on getting the mortgage refinanced, it can be a lot to go through but the savings can be so massive that it’s definitely worth doing!

    I’d definitely be interested in a post on credit card hacking, this is something I should probably be looking into a lot more given I’ve got a fair amount in my budget for travel both now and when I retire!

    • Avatar for Dan Montgomery

      Dan Montgomery

      Thanks mate. It’s probably worth knocking up a guide on each of the big spending categories. I’d be keen to hear any tips that other people have. Personally, I really struggle to reduce my grocery shopping bills. It’s painful.

  4. Avatar for Dan Montgomery

    Lochlin

    Hey mate,

    Would love to see the two stage retirement. Most Aussies will be approaching it this way and will need less after tax assets as they only need to last to age 60.

    Our Next Life strategy is a two stage retirement so you may get some ideas there.

    Cheers,

    • Avatar for Dan Montgomery

      Dan Montgomery

      Cheers mate! By ‘two stage retirement’ are you talking about accounting for (1) the period of early retirement before the super preservation age in which we have to live off investment returns and (2) the later period of retirement during which we can access Super?

  5. Avatar for Dan Montgomery

    Andrew

    Hi,

    Just a couple of items you may want to “include” in your FIRE retirement calculator.
    1) Future lump sum payments/receipts…..Wills/Gifting/Legal payouts etc.
    2) For those around my age (50) – the option to start pumping in Non-Concessional Contributions – this could be a little tricky as you reduce the returns outside Super and increase the returns inside Super…but once you hit 60y.o. your in Tax-free heaven!
    (this could be related to what Lochlin commented above about the 2 stage retirement?)

    Anyway – food for thought.
    If you have already covered it….well done.

    • Avatar for Dan Montgomery

      Dan Montgomery

      Most of that is covered in the F.I.R.E calculator available for download in the menu at the top of the page. That calculator focuses on the accumulation phase (i.e. saving for retirement).

      The calculator I am currently building is to calculate the amount that you can withdraw from your portfolio in the draw down phase (i.e. after you’ve retired). Hope that makes sense!

  6. Avatar for Dan Montgomery

    Frankie @ Fully Franked Finance

    Hey Dan, that’s an amazing mortgage rate you’ve reduced to, congrats! I’m with a credit union which was one of the cheapest rates going around when I refinanced, but 3.58% is pretty awesome.

    Hope you use that $10k early inheritance wisely 🙂

    Cheers, Frankie

    • Avatar for Dan Montgomery

      Dan Montgomery

      Thanks Frankie. It was a painful process but worth it in the end. I went through a broker to get such a good rate 🙂

  7. Avatar for Dan Montgomery

    Dividend Sensei

    House value would have gone down at least 5% YTD, so your networth would have gone backwards 43k.

    • Avatar for Dan Montgomery

      Dan Montgomery

      The property was revalued a few weeks ago as part of the mortgage refinance and it came back exactly at the purchase price. Fortunately a few things have happened to the property that improved the house price, and that offset the market downturn.

      Plus, I’m not going to try and guess the property movements every quarter. I’ll probably revisit them every 1-2 years or so. That’s sufficient for this purpose.

  8. Avatar for Dan Montgomery

    Ujwol

    Hi Dan,

    Looking forward to safe withdrawal rate calculator..

    Thanks for all your hard work.

    Cheers,
    BecomingFire.com

    • Avatar for Dan Montgomery

      Dan Montgomery

      Thanks mate, it’s not too far away now!

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