The following is a update on Tim’s plan to retire early. The current metric to tracking this goal is my net worth. This will be the last year for these posts, since once the mortgage is paid off it will cease to be useful. At that point future updates will shift to investment net worth only in 2013.
Wife’s RRSP $29,100
Wife’s Investment Account $13,000
Wife’s TFSA $11,400
My Investment Account $6,200
High Interest Savings Account $700
Total Assets $ 546,000
Total Debt $10,700
Net Worth $535,300 (+$12,800 or +2.4%) [+ 13.1% YTD ]
Investment Net Worth $169,000 (+$5400 or +3.3%) [+13.1% YTD]
Die, damn you, die! I have to admit I’m having a bit of child like glee watching the last of my mortgage fall away. As you might have noticed I decided to finish off the last of the line of credit balance since the last update. It’s been a busy summer, so between vacation and trips to the dentist I’m a little behind where I would like to be on the mortgage (ideally I wanted to be below $10,000 now), but we should be able to make up the difference in the next two months.
Now I’ve turned my mind to starting to brainstorm some new metric to track my progress to financial independence. I know that using my investment net worth is a little problematic since it can swing a fair bit on a month to month basis. So should I focus on yield from the portfolio instead? Then compare that to the average of our last 12 months of expenses? I’m not sure if that is much more stable or not. Any ideas on this would be welcome, so feel free to leave a comment on what you do below.
Oh, for those that are curious I do plan to have a small party once the mortgage is gone. After that the rest of the year will be piling money into our RRSPs to offset some taxes. Nothing terribly exciting I know, but it does give us some time to discuss our priorities as a family and make plans for 2013.
(Click image to see larger version)