$$$ KPO and CZM $$$: 2017 Net Worth

Sunday, December 24, 2017

2017 Net Worth

Let me start by wishing everyone Merry Christmas!!!

Net worth is easily one of the most important financial numbers one should know. It is like your personal balance sheet.

This is the classic comic where everyone is actually poorer than the beggar who has a net asset of $2.73. Your friend/colleague may be living in a huge condominium, driving some fancy car but it could all be financed by debts. There is absolutely nothing wrong with that as long as their income allows so. You can refer to the following articles/google on the importance of net worth.

InvestmentMoats - Don’t Track Your Expenses or Budget First. Plot Your Net Worth Instead
This is all the money we have in our savings accounts. We are in the midst of transferring our salary crediting account to DBS Multiplier Account because we go wherever there is higher interest! Bye OCBC 360! Shall not reveal the actual amount we have but all of them will be eligible for the higher interest and you can probably try to guess from the pie chart below :)

Our Cash: > $30,000

Every month, I will try to show CZM her net worth in order to motivate her to work harder towards financial freedom. However, she would always say I inflate her net worth because I included CPF. lol. I am sure some of you may have the same mentality but like I always tell her, whatever that is in CPF is our money and its main purpose is for retirement, not housing.

Screenshot is taken from 2017_MMGPI_Report.pdf 
Singapore has one of the best pension/retirement system in the "world" (ranked number 7 out of 30 countries and number 1 in Asia) according to the 2017 Melbourne Mercer Global Pension Index. I find it extremely amusing when my colleagues from other parts of the world are envious of our retirement system while the locals are complaining so much about it. One of the biggest complain I always hear is the need to repay the "lost" interest when one sells the house but I shall not digress further. lol.

You can refer to these articles for more information:
- Straits Times: Singapore has best pension system in Asia: Mercer index
- globalpensionindex.com: 2017 Melbourne Mercer Global Pension Index

Our CPF: > $100,000 (OA + SA + MA)

I blogged about our portfolio last week. You can read in detail here - Portfolio Performance in 2017. We have achieved pretty decent return this year (XIRR of 14.85%) and across all years (XIRR of 9.60%).

We have also invested some money through StashAway and the time-weighted return has been decent at 3.5% (SGD) and 5.3% (USD) till date. USD is giving higher return because there is some FX loss when converting the investment back to SGD.

Our Investment: $295,000

I believe that property should be included in the computation of net worth. If one excludes the value of the property, the money (cash/CPF) you use to pay for the loan/mortgage will be no different as disappearing into the thin air or throwing it into the sea. However, I would be conservative by valuing the property at cost/purchase price.

We have only paid the first 5% downpayment so far and yet to start paying for the housing loan (still building). So I will just assume that the remaining $402,420 will be financed by the housing loan/mortgage. That would mean the value of our property is purchase price ($423,600) - loan ($402,420) = $21,180. If you are wondering, it is a 4 room HDB at a matured estate. What is the probability of us being your future neighbour? lol.

Our Property: $21,180


Our Net Worth: $510,000

Here you go! Our net worth pie chart, it looks pretty yummy to me :) CZM was asking if it is possible to hit $1 million by age 30... Shall try to estimate and forecast it another day.

Are you tracking your net worth?

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  1. Is amazing that you did similar logic on computing networth as me. I like it !

    1. Hi Cory,

      I guess great minds think alike? Hahahaha.

  2. Hi Unknown,

    Unfortunately, I do not have any template to share at this moment. My spreadsheets have been highly customized for my own usage. On the bright side, I believe you can get template from InvestmentMoats site.