How Did We Get to AUD 2 Million?

This month we hit $A2 million net worth for the first time. We reached $A1 million in September 2013. How did net worth increase that much in 4 years? This graph should help explain:

The biggest contributor is profits on retirement accounts at $295k. Stock markets have been very strong. Retirement contributions added $182k. Housing equity contributed $249k. Current savings added $72k and profits on non-retirement accounts $219k. But, of course, we shifted $150k of current savings as a downpayment on our house. So really current savings were a larger contributor than retirement contributions. Of course, mortgage payments come out of our current income too.

A lot of the time it feels like that we aren't doing any saving now apartment from mortgage principal payments and retirement contributions. The blue line shows that actually we are.

November 2017 Report

Stock markets rose again this month and our net worth went over the AUD 2 million mark. I am wondering how sustainable that is going to turn out to be. We hit the AUD 1 million mark in September 2013. So it's only taken just over 4 years to add another million and double our net worth.

Here are our monthly accounts (in AUD):

"Current other income" was $21k. This was a three salary payments month and I also got a large reimbursement. Spending (not counting our mortgage) was high at $8.5k. After deducting the mortgage payment of $5.6k (which includes implicit interest saving due to our offset account - the actual mortgage payment was about $869 less than this - it was also a three mortgage payment month), we saved $7.1k on the current account and added $3.7k in housing equity. Retirement contributions were $4.7k. Net saving was, therefore, $15.6k across the board.

The Australian Dollar fell slightly from USD 0.7672 to USD 0.7571. The ASX 200 gained 1.64%, the MSCI World Index gained 1.98%, and the S&P 500 3.07%. All these are total returns including dividends. We gained 1.98% in Australian Dollar terms and 1.68% in US Dollar terms. So, we slightly outperformed the Australian market and slightly underperformed international markets. The best performer in dollar terms was the Colonial First State Geared Share Fund, gaining $5.9k followed by Unisuper, PSSAP, and Platinum Capital, which all gained around $4k. 3i (III.L) was the worst performer losing $0.8k. Hedge funds were the best performing asset class in percentage terms, gaining 2.43%. Private equity was the worst performing asset class, losing 0.47%.

As a result of all this, net worth rose AUD 48k to $2.034 million or rose USD 17k to USD 1.54 million.

October 2017 Report

The Australian stock market rose strongly for a change this month and the Australian Dollar fell a little. As a result, our net worth increased strongly and now is quite close to the AUD 2 million mark. Here are our monthly accounts (in AUD):

"Current other income" was $15k. We received almost $2k in childcare subsidy that the government pays us quarterly. Spending (not counting our mortgage or business expenses that should be refunded) was a little higher than last month moderate at $7.0k. After deducting the mortgage payment of $4.0k (which includes implicit interest saving due to our offset account - the actual mortgage payment was about $828 less than this), we saved $1.7k on the current account and added $2.1k in housing equity. But we should get a $2.3k refund of business expenses at some point, which will be credited as saving in a later month. Retirement contributions were $3.1k. Net saving was, therefore, $6.9k across the board.

The Australian Dollar fell slightly from USD 0.7839 to USD 0.7672. The ASX 200 gained 4.01%, the MSCI World Index gained 2.1%, and the S&P 500 2.33%. All these are total returns including dividends. We gained 4.19% in Australian Dollar terms and 1.97% in US Dollar terms. So, we slightly outperformed the Australian market and slightly underperformed international markets. The best performer in dollar terms was the Colonial First State Geared Share Fund, gaining $17.5k. Cadence (CDM.AX) was the worst performer losing $0.5k. Australian small cap stocks were the best performing asset class in percentage terms, gaining 4.68%. Hedge funds gained 4.46% and US stocks 4.42%. Private equity was the worst performing asset class, but still gained 2.21%!

As a result of all this, net worth rose AUD 72k to $1.985 million (new high) or rose USD 23k to USD 1.523 million (also a new high).

TFS Capital Closes Its Mutual Funds

I was surprised to hear that TFS Capital is closing its three mutual funds. I have about USD 14k invested in the TFS Market Neutral Fund. I think they will send me a check with the proceeds. Following Interactive Brokers transferring my account to their new Australian subsidiary, this will be another step in reducing my financial footprint in the US. I still have a couple of bank accounts and a 403b fund there. I'm not planning on closing the latter and will also try to hang onto the bank accounts.

September 2017 Report

It was another relatively quiet month financially. Here are our monthly accounts (in AUD):

"Current other income" was $14.7k. I got paid about $2.5k of backpay. Spending (not counting mortgage) was about the same as last month moderate at $6.8k. Rates (property tax) and the body corporate (condo) fee added more than $1k. After deducting the mortgage payment of $4.0k (which includes implicit interest saving due to our offset account - the actual mortgage payment was about $840 less than this), we saved $3.9k on the current account and added $2.1k in housing equity. Retirement contributions were $3.5k. Net saving was, therefore, $9.5k across the board.

The Australian Dollar fell slightly from USD 0.7922 to USD 0.7839. The ASX 200 lost 0.02%, the MSCI World Index gained 1.97%, and the S&P 500 2.08%. All these are total returns including dividends. We gained 0.97% in Australian Dollar terms and lost 0.09% in US Dollar terms. So, we outperformed the Australian market and underperformed international markets. The best performer in dollar terms was the various Platinum Funds, gaining $6.0k. IPE was the worst performer losing $2.0k. That was the result of a tick down of 0.5 cents in the share price to the bid rather than ask side of the spread. Hedge funds were the best performing asset class in percentage terms, gaining 3.55%. Private equity was the worst performing asset class, losing 4.11%. Commodities were also down, 1.58%. All other asset classes gained.

As a result of all this, net worth rose AUD 22k to $1.910 million (new high) or rose USD 2k to USD 1.498 million (also a new high).

Moominmama's Taxes 2016-17 Edition

I've filed Moominmama's tax return for this tax year. The tax year runs from 1st July to 30th June in Australia. The figures ignore employer and employee contributions to superannuation (retirement account) which amount to a lot of extra income. Everything is in Australian Dollars of course.

Her salary is down because she went on maternity leave and the average tax rate also falls as a result. Investment income is up though.

Here are the reports on Snork Maiden's taxes for all previous years:

2015-16
2014-15
2013-14
2012-13
2012-13
2011-12
2010-11
2009-10
2008-9
2007-8