NSR/NW Rule

I’ve decided to create an NSR/NW Rule.

Currently we’re averaging 125K+ NSR annually which is great, which we average about NSR 65%+ annually. That estimates about 14% of our PY NW.

If we average 125K NSR, and add growth of 10% of NW annually, our NSR/NW would be a decrease of about 4% the following year since the estimated NW would then be +20% annually. 10% NW=100K. NSR 125K+100K=225K. NSR/NW=225K/1.25M=22%+

The year after would be 10% NW=125K and so on, so it’s about +25K accumulated in NW annually.

NSR at 125K+125K=250K. NW 1.25M+.25K=1.5M. 250K/1.5M=16.7%. However, NSR% would be 125K/1.5M=8.3% and so on. That leads me to believe that eventually the NSR/NW would eventually be <5% annually. That may also mean that growth would surpass NSR annually since growth increases as NW increases, and our 65% NSR remains constant. Because of these two factors, it makes sense that NSR/NW decreases annually since NSR stays the same (numerator), and NW increases (denominator).

Therefore, we’ll be creating a stop rule of 5% when NSR/NW. We’ll stop contributing for the asset classes, and would just focus on contributing to our ING Offset to pay off the property. We’ll be stopping our NSR altogether since the growth of NW surpasses our initial NSR target.

Once the property is fully paid off, depending if we have other properties to focus on, otherwise we’ll determine the dividends and cash flow generated from our assets to cover our living expenses focusing on FI.