Sunday, April 19, 2015

Snapshot at an Inflection Point

Now the house purchase is complete * and we are starting a new financial restructuring plan I thought of drawing up a balance sheet as a snapshot of this "inflection point". It's in a different format to anything I've done before as it is based on the various accounts things are in and how flexible they are rather than asset classes and beta and other investment theory things I've considered in the past. This is all in Australian Dollars:

Long term assets are retirement accounts, checking, saving, cash, and credit cards are short term and everything else is medium term as it can be restructured/sold/closed etc. but probably won't be done fast. So, the goal now is to increase the size of the offset account until it is the size of the mortgage. In the meantime adding a bit to some investments  - we still have $2000 of automatic savings a month outside of retirement accounts for example - and increasing the margin loan. Then one day in a few years there will be a flip - pay off most of the mortgage, redraw the mortgage, then pay-off the margin loan and make investments.

BTW, if you're wondering why we have a thousand dollars in Australian Dollars cash, a big chunk of that is a travel money card.

 * As you can see from the balance sheet we still didn't get the deposit on our apartment back, so everything is not yet settled.

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