This post marks a half-century of net worth updates. I have mulled over whether to move to quarterly updates but will continue with monthly ones for the time being.
Unfortunately, the current uncertainties brought a fall for the second month in a row to my net worth.
It looks like the good run property has had is coming to an end whilst problems in the economy work their way through.
Stock markets continue to be volatile and a lot of people are fearful. I’ve noticed in forums more people asking whether they should stay in the market or sell up while they can. This is a good sign for us who ignore the falls and keep investing through good and bad.
We managed to get a family holiday away to Crete at the start of September. It was nice to get some sun and relax, and the kids had a great time.
The kids went back to school and we continued doing our normal daily work and admin tasks so we have been quite busy.
The Numbers
Original FI Target – £1.25m – to give £50k/year income @ 4% withdrawal rate.
Current FI value – £848k networth+ £481k (2xState pen £19.2k x 25) + £88k (DB pen £3.5k x 25)) = £1.417m
% to Target FI – 113.4% (114.4% last month)
Time to FI = Achieved! (achieved-April 21)
MONTHLY UPDATE AND GOALS
Last months figures in brackets
Net Worth Sep ’22 – £848,073 (Aug ’22 £860,114) -1.4% -£12,041
Assets – £1,048,377 (£1,061,758) -1.3% -£13,381
Cash/bank £7975 (£7752)
Main Home Q3 £531,104 (Q2 £533,323) -0.4% -£2,219
Rental Properties Q3 £219,080 (Q2 £219,996) -0.4% -£916
Pension SIPP £290,218 (£300,678) -3.5% -£10,469
Liabilities – £200,304 (£201,645) -0.7% -£1,340
Main Home Mortgage £77,300 (£77,650)
Loans, Debts and credit cards £123,004 (£123,995)
Overall Net Worth in September decreased by £12k due to a another fall in my SIPP value and a small fall in property values.
Rolling year-on-year change in net worth from September ’21 is +£87,429 (assets +£80,575 liabilities -£6,854)
Since we began tracking in June ’18, our net worth has increased by £433k, at an average of £8.5k per month.
Property
My house price YOY change +11.3%. (Q3 2021 – Q3 2022 NW England)
The Equity in my main home is £453,804.
Main home and rental property values are calculated using the Nationwide House price index.
Nationwide’s September’22 update reports annual house price growth slows to single digits in September.
The UK annual % change in house prices is +9.5%, with a UK average house price of £272k.
Dividends
SIPP Dividends paid in September were £1495.
Dividends Sep 22 YTD total 7383, Av. £820/m (Sep 21 ytd £5335, Sep 20 ytd £4109)
(Year totals –2016 £425, 2017 £911, 2018 £1306, 2019 £2319, 2020 £5942, 2021 £7383)
Rolling 12m average is £763/m
Other Monthly/weekly goals
Matched Betting £0 this month (-£3 last month)
Didnt do any MB this month due to holidays etc.
Total to date since starting 59m ago £13934 Av. £240/m (£13937 to last month Av. 245/m), broken down as follows.
Casino/slot offers to date £7006(7006) = +£0 this month
Each way sniping to date £625 (£625) = £0 this month
Normal match betting offers £0 this month
Diet and Fitness
Put a couple of kgs on this month to 76kg and 22% body fat . (74kg, 20% body fat last month).
My target is to get to 70kg and/or under 15% body fat.
eBay/selling – Nothing done this month.
Just reading this back.
You value your state pension at 25 times the annual amount.
Does that mean you get yours at 65?
For me, I’ve pencilled it in at 12 times due to me getting it at 68 and giving myself until 80 – maybe pessimistic…
But maybe that’s just me.
Hi GFF
Ive valued it at 25 times as that equates to equivalent amount of money i’d need at 4% withdrawal rate. I know it’s only a rough guide but I’m treating my Sipp as a bridge until I get the state pension at 67, so my withdrawal rate from my Sipp will be higher than 4%.
I’ve modelled out the cashflow and should be ok. I don’t want to work any longer than I have to, and valuing my state pension at 12x may mean I would do so unnecessarily.