My Household CAGR

Discussion in 'Financial Independence, Retire Early (FIRE)' started by ChrisP73, 15th Feb, 2020.

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  1. ChrisP73

    ChrisP73 Well-Known Member

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    Ok, on first glance, this may appear like an early april fools joke, but that's just a co-incidence:)

    It's now 21 years since I commenced tracking my personal (now joint) net wealth. I thought it might be interesting to look at my personal CAGR at 1-10 year intervals over the last 20 years

    upload_2020-2-15_14-23-25.png
    This represents the impact of far more than my investment asset returns. It won't necessary mean much to others, but it provides a financial blueprint for my last 20 years - I can see the impacts of housing prices, investment markets, leverage/debt reduction, personal decisions, family, career progression and business decisions. In this scenario - I've pegged future CAGR at 12%, but I'm actually aiming for 15% p/a. This gives me an ambitious target and something I can break down into compenents and implement a detailed plan to achieve.
     
    ChrisP73, 15th Feb, 2020
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  2. JohnPropChat

    JohnPropChat Well-Known Member

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    Nothing beats a bit of early boost to really puts thing in motion. Nicely done.
     
    JohnPropChat, 4th May, 2021
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  3. thatbum

    thatbum Well-Known Member

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    Am I the only one that doesn't know what a CAGR is or what the table means?
     
    thatbum, 4th May, 2021
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  4. MTR

    MTR Well-Known Member

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    Me too:)
     
    MTR, 4th May, 2021
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  5. spoon

    spoon Well-Known Member

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    Compound annual growth rate (CAGR). Presumably each column is an asset/investment? Each cell is the return of the year? Why it started so high a % is not sure. And OP is from the future of 2030... :eek: Good for a brain teasing exercise.
     
    spoon, 4th May, 2021
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  6. SatayKing

    SatayKing Well-Known Member

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    SatayKing, 4th May, 2021
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  7. ChrisP73

    ChrisP73 Well-Known Member

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    Haha, seems like my post from 15 months ago confused more than a couple of people :)

    Growth of "net assets".

    column 1 is annual growth
    column 2 is 2 year annualised growth
    column 3 is 3 year annualised growth
    ....
    column 10 is 10 year annualised growth

    the post was from Feb 2020.
    growth rates up to ~1st Apr 2020 are actuals.
    growth rates post ~1st Apr 2020 were forecasts based on an estimated annual CAGR at 12%

    Early years are high percentages because my net wealth started from a low base and asset base contributions/additions were significant due to a pretty good savings rate. In recent years total return (growth & income) on my asset base has a larger impact than additional contributions from savings.

    It was an interesting exersize from me and possible because I've recorded assets and debts each quarter since the year 2000.

    Its all pretty meaningless really. Nothing more than a curiousity on my part.
     
    Last edited: 4th May, 2021
    ChrisP73, 4th May, 2021
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  8. SatayKing

    SatayKing Well-Known Member

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    SatayKing, 6th May, 2021
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