EK Financials Analysis (2021-2023)
EK Financials Analysis (2021-2023)
Our Equity increased by 197K from DEC22, about 24%. It’s one of the few years where both the AU and US markets are hitting the 52WH range. In addition, our Property increased by 12% since we’ve purchased it two years ago, or 6% annually. Our target’s about 3.5% property value increase annually, however, it’s nearly doubled even with raising and higher interest rates.
Notes:
KFI-BinvT is at 78K, while ESuper is at 102K. It’s weird that Brandon’s Trust balance isn’t too much different than my Superannuation account, and makes up about 8% of our Net Assets. This being said, KFI-BInvT target is 5% of our Net Assets, so I’ll reduce his balance by 28K. I plan to reallocate 14K to US Investments and true-up the balance as USD FX rate decreased by about 5% past few months. ESuper is 65% of KSuper. I’m expecting KSuper to increase by 8K by JUN24, excluding KBonus SG as it’s subject to hit by JUL24, so I’ll be contributing 5K to ESuper. 28K-14K-5K=9K remaining. AU Equities target is about 20% of Net Assets, so the remaining 9K will go there.
As we forecast for JUN24, we’re targeting to increase our net savings by 64K within the next 6 months. 8K to EK Super, 21K on Property. ING Offset we plan to have 15K (2.5K contr x 6 months) + 20K (net K Bonus) = +35K. Since K Bonus won’t be hitting until JUL24, that would mean JUN23 will have a carryover balance. I’ll recalculate KBonus Salary Sacrifice in a few months. The remaining funds from KBonus net will be going to the ING Offset, so for now the 20K to ING Offset is subject to change.
The Mortgage Interest Rate stands at 6.79% to-date. 158K in the ING Offset Acct at 6.79%, we will be saving about 10.7K in interest payable. Half a year of savings would be 5.35K. I might consider making an extra contribution of our interest cost savings. We’ve already made an extra contribution of 7.5K in DEC23, so I’ll recalculate utilizing our mortgage EK Home Mort Repay Offset (Contr Analysis)(v5)(6.79%) calculator around MAY24 to see where we stand.
Our target Net Equity is 1.075M by JUN24. Our target Net Equity Incr % from JUN23 is +16%, or +150K in increased equity. This includes net savings, and excludes market returns.
