Join our investing community

Living on Equity Spreadsheet 2016-09-15

Living on Equity Spreadsheet

  1. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    MichaelWhyte submitted a new resource:

    Living on Equity Spreadsheet - Living on Equity Spreadsheet

    Read more about this resource...
     
    Last edited by a moderator: 15th Sep, 2016
  2. Alan

    Alan Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    603
    Location:
    Sydney
    Michael,

    REALLY useful supplement to the actual article. Thanks very much.

    Some of those figures I'm seeing are better than the rough mental picture I'd estimated. :D


    :)
     
  3. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    Yep,

    Seems, you, Alan and I are all of the same view here.

    Have updated the spreadsheet to only factor growth on the property portfolio, and ignore potential "held-back" growth in the managed fund portfolio. We'll assume the managed funds are an income source and not a growth source.

    Cheers,
    Michael.
     

    Attached Files:

  4. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    932
    Location:
    Sydney, NSW
    Michael,

    Thanks heaps for your spreadsheet :) It's a real eye opener!

    Given that not everyone's share portfolio is 100% invested in Navrainvest, I've modified it slightly to represent two classes - income oriented funds and capital gain oriented funds. Both distribute income and both have capital gains, but at different rates.

    What freaks me out is that this is telling me I'm halfway towards retirement. Something has to be wrong somewhere.
     

    Attached Files:

  5. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    Hey Michael,

    Some of us have both Navra income funds and other growth oriented funds in our portfolios. Maybe we need two managed fund sections to reflect both types. I also hold commercial property which I would like to seperate out from the residentials with say a 3% cap growth x 9% income.

    What do you think mate?

    MJK :D
     
  6. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    No worries...

    I've tarted it up a little bit and attached it here again. Glebe deleted the formulas for property because I assume he's holding none, but others will need them in there for their personal situation to be modelled.

    So, this should be a complete robust model now for you to put your own mix of assets in and see how you're looking.

    Cheers,
    Michael.
     

    Attached Files:

  7. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    932
    Location:
    Sydney, NSW
    looks good
     
  8. Rick

    Rick Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    103
    Location:
    QLD
    Hate to be picky on such a good spreadsheet, but shouldn't the

    Total Shares - Debt

    box be yellow to indicate an input is required ?

    :) Rick
     
  9. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    Rick,

    Quite right! Fixed and reloaded here.

    Cheers,
    Michael.
     

    Attached Files:

  10. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    Got it mate, I've been ofline. Its good. :D Still no space for commercial property. If I knew how to run a spreed sheet properly I suppose I could add it myself. :eek:
    I'll have a muck around with it but no time tonight.

    MJK :)
     
  11. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    Guys,

    Sorry, there was another little mistake in the spreadsheet which I hadn't picked up until now. It considered rental income from all "residential property", even though part of this was your "family home". In fact, you need to exclude the family home from the passive income calculation for residential property, and only include it in the capital growth calculation for residential property.

    This error made my numbers look good as I have an $800K PPOR that was nominally making me a 3% rental yield on top of its capital growth. This is just not the case, I can't live off that passive income. Of course, it "offsets" my need to rent, but that's a different part of the equation.

    So, I have fixed the spreadsheet and attached it here. I've also added the Commercial Property bit for MJK.

    Cheers,
    Michael.
     

    Attached Files:

  12. Rick

    Rick Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    103
    Location:
    QLD
    Michael,

    The "Total passive income" box doesn't add the rental incomes to share income.

    Rick :)
     
  13. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    Thanks mate,

    Fixed and reloaded here. There was another small mistake in that area too with the capital gains adding in the passive income, so I was double dipping. That's what happens when you start cutting and pasting these things, all your links start to get violated.

    I think its all good now. Certainly makes my picture a lot more sombre...

    Cheers,
    Michael.
     

    Attached Files:

  14. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Doesn't look like you fixed it... cell B61 should be =SUM(B58:B60)
     
  15. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    Doh! Gee I'm a goose...

    OK, fixed now. :(

    BTW, shows the importance of version control on files doesn't it. Now if anyone says "mine looks bad", I can ask are you using v3.4? ;)

    Cheers,
    Michael.
     

    Attached Files:

  16. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    Michael,

    Thanks for your additions. I'll have a go with it and see how things look. :D

    MJK
     
  17. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    Well I've plugged in my figures and it looks like I could retire on 70K per year now if I wanted to.
    Thanks for the spreed sheet. At the moment I have not leveraged off my managed funds so that will be the next step. Setting up a margin loan. Things should look even better then!

    MJK :D
     
  18. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    932
    Location:
    Sydney, NSW
    Awesome stuff MJK!

    I wonder when we reach the $100k mark (or whatever) if we'll all feel secure enough to live the LOE philosophy. I hope so.
     
  19. Redwing

    Redwing Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    476
    Location:
    PERTH..WA
    Thanks for that Spreadsheet Michael,

    I plugged in my personal figures and found it interesting..
     
  20. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    You're welcome mate. Its a very interesting little exercise isn't it. Of course its all predicated on a whole raft of assumptions around ongoing rates of return for yous assets. But if history is to be believed as a robust guide for future performance then the model holds.

    Personally, I'll discount the assumptions quite heavily before putting it into place. I personally believe demographic changes will result in quite a different investing environment over the next 50 years than we've seen over the past.

    Still, its good to know we're on the right path hey! :D

    Cheers,
    Michael.