EKSuper BF+Cash Inv Analysis (JUN24-FEB25)
EKSuper BF+Cash Inv Analysis (JUN24-FEB25)
AI to calculate Boiling Point (Word)
Analysis:
YTD Net Contributions are 24.6K or 67% of the Incr. Inv. Bal
YTD Market Return (MR) is 12K or 49% of Net Contributions
Total YTD MR$ is 36.6K or 7.2% [12K/167.9K]
Money Guy “Boiling Point”:
“It's the point where most of your account growth comes from investment returns instead of contributions.”
Assessment:
We’re about half way there where our MR is currently at 49% of our Net Contributions, and about 1/3 of the Increased Investment Balance. Effective last year, Kathy’s employer changed their Bonus payout policy to be paid in JUL24, instead of JUN24, so this will true-up our YTD Contributions amount to reflect the previous year contribution catchup. By JUL25, YTD contributions will be back to normal and our YTD MR$ should be closer to our Net Contributions reaching its Boiling Point.
Our KSuper Inv Bal as of FEB25 is 205K, so next year our % should inverse where the YTD MR$ / YTD Net Contributions = 67%. Based on the ATO, max concessional contributions is 30K. Since Super is taxed at 15%, net contributions is 25.5K. Based on our estimates, using reverse math, the investment balance should be around 340K at MR% 7.5% at 25.5K. Per the AI response, MR% contributes about 97% by JUN27, so in about 2 years from now. That means KSuper MR$ would be the same if not more than her employer net contributions.
