I've added a new 'long term' goal to the graphic in the RH margin - it shows how
close I am to fully funding my desired retirement income solely from the money
socked away in my retirement fund (SMSF). I've set the goal at a fairly modest
65% of my current pre-tax salary, the rationale being that
a) the pension
paid out of my SMSF will be tax free (under the current "Simpler Super"
regime),
b) I currently use up a large part of my salary on expenses that
won't exist during retirement [eg. retirement savings (at least 13% via salary
sacrifice), daily commute (2%), income tax (at least 10%), mortgage, children...
- hey, I looks like I won't need any money in retirement ;)],
c) I'll
also have my other investments to draw on for any large one-off expenses,
unexpected health costs etc. (although I'm not planning on consuming my
investment portfolio during retirement if I can help it).
The calculation
also assumes that I can withdraw a pension from my SMSF at the rate of 5% of the
total value each year without reducing it's real capital (this assumes a
tax-free 8% long term ROI and 3% inflation rate). This gives me a target in
current dollars to which I can compare my current SMSF balance. Using this
target amount and the currect balance of my SMSF I get a figure of
27%.
This month I've "written off" around 1/4 of my education goal for
2008, as I've fallen behind in my MIT course work this semester and decided to
take a leave of absence for next semester, when we'll be away on holiday
overseas for more than a month. I'm still hoping to complete the course work for
my BTeach and DFS(FP) enrollments, but at the moment I'm struggling to find the
time to get on top of things.
My investment goal for 2008 is still
looking unattainable after a poor 1st quarter, and my weight loss is progressing
much slower than I'd intended (at least it's still heading in the right
direction).
I won't be moving the "goal posts" though, as I still want to
try to get as close to my original targets as possible on the annual goals, even
if I don't quite make 100%.
Are you beating the market? We are!!!