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.
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 🙂
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.
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! 🙂