Thursday, December 31, 2009

Portfolio Growth for the Decade

At the end of 1999 my net worth was $A141k or $US87k. Today our net worth is around $US415k or $A470k. Is that good or bad? The growth rate is 12.8% per year in AUD terms or 16.9% in USD terms. Our investment rate of return was just 2.7% p.a. in USD terms and 0.1% in AUD terms. The MSCI World Index gained 1.0% p.a. So we beat the index over ten years. My projection spreadsheet predicts around $A1.5 million by the end of the next decade (when I will be 55 years old and Snork Maiden 44). That's a 12.3% p.a growth rate. If investment returns are better this coming decade it looks like that that is possible. I'm not adjusting for inflation in any of these numbers.

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