Posted by Tim Stobbs on May 5, 2009
I have another income earner in my house: my money. It never complains, it works 24 hours a day, 365 days a year and does a fairly good job of making some extra money for the house. Unfortunately I’ve never figured out exactly how much it makes.
I know that between my taxable and RRSP accounts there is a fair amount of money coming in from distributions, dividends and interest. Yet I’ve never bothered finding out how much I actually took in from all of the investment/RRSP accounts in a year. So I sat down with my 2008 tax information and dug into my RRSP statements to find out.
I immediately came to the conclusion that my bank has no desire for me to know how much income my RRSP funds are giving us. They bury the details in each statement so you have to look up each line for each fund in each statement and then add them together. A massive pain in the butt, no wonder I’ve never did this before. All in all the RSP accounts spun off just under $1300, which given their combined balance at the end of 2008 was $30,600 means a mere 4.2% yield.
The taxable accounts are entirely a different story. Those are the higher risk accounts and it shows. Those made about $2400 in income on a combined balance of $14,200 at the end of 2008. So yield there was 16.9%.
Therefore combined we took in an extra $3700 on a total of $44,800 or an 8.3% yield. Damn my extra income earner is working harder than I do! Overall that is fairly good since that represents about 1.2 months of our current spending. Of course an issue with these numbers is they are all pre-tax, so once the government gets its share I’m would be lucky to have about a month of spending left.
So do you track what your other income earner brings in each year? If so do you keep an up to date record or just estimate it once in a while?