Net Worth – Aug 2010

This post should almost have the sub-title: where not much was done.  I had a change in plans over the summer.  My wife and I booked our trip to Hawaii to celebrate our 10 year anniversary this winter.  The problem was I was planning to save up for it for the last half of the year.  Then once I realized I could either drain my savings and pay for it now or use the line of credit.  I decided to just pay cash and be done with it.  As such we stopped any extra savings for retirement or any extra payments to the mortgage during the summer to refresh our savings account, so not much will happen with the numbers below.

Assets

House $340,000
RRSP $24,000
LIRA $10,200
TFSA $8,800
Pension $23,300
Wife’s RRSP $11,900
Wife’s Investment Account $11,400
Wife’s TFSA $7,300
My Investment Account $6,000
High Interest Savings Account $3,600

Debt
Mortgage $92,600
HELOC $0

Net Worth $354,000 (+$12,300 or +3.6%) [+ 16.3% YTD ]
Investment Net Worth $106,600 (+$1,500 or +1.4%) [+ 8.0% YTD]
Mortgage is down by $28,600 or 66% of my goal for 2010.

The housing market price gap has looked to stabilized a bit so I’ve went ahead and updated my house value on the lower end of the range.  So that was the primary increase you will see this month.

I keep working on my mortgage goal even when I know I won’t hit it this year.  I took a reduction of hours at work which made making the goal impossible.  Yet I still still interested in seeing how close I can get to it.

Any questions?

(Click to see larger version)


10 thoughts on “Net Worth – Aug 2010”

  1. Kevin,

    Early thirties and the long term goal is to have the investment net worth at about $700,000. I don’t bother with a long term net worth goal since I’ll actually stop posting net worth once I pay off the mortgage.

    Tim

  2. 700k also happens to be the sweet spot for me too… all this talk of “you need a million dollars” is hogwash…

  3. We’ll i’m 43 and have have a net worth of 3 mil plus (which included my house)and i don’t think i can fully retire yet. If figure i need 125k/yr to live on . Good luck Guys

  4. $125K?!? Wow, that is a high target. Where do you live and what do you plan on doing in retirement?

  5. $700k (US$ in my case) is pretty common (e.g. 28k/yr at 4% withdrawl rate). It’s also probably no accident that $28k/yr represents twice the poverty level in the US for a two-person household as studies have shown most people are “comfortable, no complaints” spending for their household at 2x the poverty level.

    If you can spend more than that, then people will spend on leisure and increase their happiness… provided they have time to enjoy that leisure. Otherwise life becomes a stressor, which is why happiness surveys level out above that amount (most people are still working, so they can’t enjoy more leisure that they could spend for).

  6. I live in Calgary. I wont ever fully retire i’ll always generate some revenue. I just plan on getting out of the rat race and work for myself. I’ll either do some consulting work for the oil and gas industry or expand my realestate portfolio and do alot of skiing and golfing with the family.

  7. Kevin, seriously?!? U need $125K in retirement? What do you want to do?? You need to spend over $10k/month in retirement?? That is a whole lot of golf, dining, travelling, hobbies etc. Buy a $500k condo, invest 2.5m at 4.0% gives you 100k/year. Time to shut her down and see the world!

  8. You guys realize that the 4% Safe Withdrawal Rate is designed to last for 30 years, not forever, right? Retiring at 45 taking 4% of $700k will give you $28,000/year, increasing with inflation, until you’re 75. Then you’ll be broke.

    What’s Plan B?

  9. Plan B: actually is a continuation of plan A. At 60 I can collect CPP and then based on just half of OAS at 65 will reduce income requirements to a suitable level to last until I am dead. Backup plans include some working income from 45 to 60 (amount left blank to reflect the fact it will be hard to predict) and the final backup plan is to sell the house and rent. I hope that helps explain things.

    Tim

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