Wednesday, January 02, 2013
We came in near the top of 2012's predicted range for net worth. For this year, the optimistic forecast is $A975k or just over $USD 1 million. Buying a house would cost about $50k in costs and then around $2,500 a month in higher costs. So let's assume a $75k hit. A fall in the Australian Dollar to 75 cents would increase Australian Dollar net worth to over $A1 million and reduce US Dollar net worth to $US765k. While we are expecting a 10% investment return a 10% fall instead would mean net worth was $175k lower. So the expected range in Australian Dollars is $A700k-$A1 million and in US Dollars $500k to $1 million.