NS/NW and NI/NW 2024 Analysis
Nomad FI Dashboard (NOV24)(ME)
As we prepare for 2025, we would need to analyze a few of our financial ratios prior to finalizing our DEC24 financials to determine if we should include other ratios and/or if these financial ratios work for us.
Our Net Savings is 112K. Our Net Income is 161K. Our NSR % is 70%. Our Target NSR % is 65%. Check.
Our Net Worth is 1.1M (as of NOV24). Our NS is 112K. Our NW % Growth % is 10%, so our NW Growth is 1.1Mx10%=110K. Our NS/Growth% = 102% (112K/110K). Check.
Our NI is 161K. Our NW is 1.1M. Our NI/NW% = 161K/1.1M=14.6%. Our Target NI/NW% = 10%. Check.
Our NS is 112K. Our NW is 1.1M. Our NS/NW% = 112K/1.1M=10.2%. Our Target NS/NW% = 7.5%. Check.
Now let’s analyze our financials metrics.
Let’s start with Property. As we’ll be mortgage free by DEC24, our mortgage repayments are about 42K. For Property Value, past 3 years the % have been skewed post-Covid mainly due to the increase mortgage interest %, increased in demand from property investors, as well as, individual buyers. It’s not a valid assessment to use 5% for CAGR%, so we’ll use 3.5% conservatively. We should probably be using 1.5% CAGR%, but based on the 3 years since purchasing the property, it would be hard to use historical %’s as current trends for assessment. If we estimate our Property Value to be at 800K by DEC24, at 3.5% CAGR%, that’s about 28K. Our Property Fees are about 8.8K/annually. We’ll be excluding 8.8K in Property Fees from our assessment to keep our calculations simple. Mortgage Repayments of 42K (Mortgage Repayments)+28K (Capital Appr)=+70K for Property. Mortgage Repayments would lower our remaining mortgage loan, therefore, increasing our Equity. This is for Property1.
As we will be using our drawdown schedule for Prepaid Mortgage (PPM), this would free up our monthly contributions for Property2. From memory, 3K for MC, 1K for extra payments, so that’s about 3Kx12+1Kx12=48K. We have Prop Fees of 8.8. Round up to 9K, so 48K+9K=57K. We have 55K recorded. This will require an adjustment as Property1 will be using drawdown, so the MC+extra will be reallocated for Property2. Only the 8.8K Prop Fees will be for Property1. However, since Property2 is mainly to save for downpayment, we’ll reallocate 15K to Savings. Our adjusted MC will be the following for 2025: Property1: 9K; Property2: 33K; Savings: 15K. Property1: 750; Property2: 2.75K; Savings: 1.25K. Net +2K increase.
For EFI, we currently have 2.5K in monthly contributions recorded. However, we’ll be reducing our MC from 2.5K-to-2.25K. We have 30K recorded, so we’ll be changing the total to 27K in 2025. Net (3K) reduction.
For KSuper, we’ll be changing the SG from 19.5K-to-20.7K to reflect the increase in SG%. Net +1.2K increase.
For ING Offset, currently we have 8K recorded. This is mainly due to reflecting our mortgage repayments in Orange Advantage, therefore, decreasing our remaining mortgage loan and increasing our equity. Based on the current mortgage interest rate at 6.79%, our repayments average 900/month. 900x12=10.8K. We would need to adjust from 8K-to-10.8K for 2025. Net +2.8K increase.
For ESuper, it’s currently recorded at 0. Should be 3K minimum to reflect the spousal contribution limit. Banks are still trading at premium prices, and we have 241K in Cash in EKSuper. Cash Yield is about 5.5% in the cash investment account even if we don’t trade. So 3K spousal contribution is sufficient. Net +3K increase.
