Investment Update – May 2013

The following is an update of Tim’s plan to retire early.  Please note the house is paid off, so net worth is no longer tracked.

To track my progress I’ve decided to track both my expenses and my investment gains.  So once the investments gains are consistently beating my expenses I’m financially independent and can stop working.  I think my ideal tracking of this would be one full year of investment and spending data, but I don’t have that yet.  So for now I’ll do a trailing six 12 month average on spending and investments for the calendar year to date.

Investments

Account (Contribution), [+/- Gain or Loss less contributions]

RRSP $33,920 ($100), [+$610]
LIRA $12,690 ($0), [+210]
TFSA $20,220 ($0), [-$410]
Pension $73,610 ($973), [+$877]
Wife’s RRSP $39,210 ($0), [+$410]
Wife’s Investment Account $12,830 ($0), [+$740]
Wife’s TFSA $14,050 ($0), [+$330]
My Investment Account $6,650 ($0), [-$240]
High Interest Savings Account $4,410 ($2500),[$10]

Investment Net Worth $218,330 ($3573 ), [+2536 or 1.2%]

(YTD Contribution: $21,376), [YTD Gain: $14,253 or 7.8%], YTD Avg Monthly Gain $2850

Spending Averages

Last Month $2462

Trailing Last 12 Months (less mortgage payments) $3192

Results

Number of months spending covered by investment gains: 0.89 {Target 1.0 or higher}

Commentary:

Crap, crap and crap!  I realized I had at some point made an error in my spending tracking with Mint…it was pulling in my business accounts which have screwed up my spending numbers (for I don’t know how many months). Oh, well the good news is the grand scheme this isn’t a huge problem as my business is a fairly low amount of spending so it won’t have been that far off.

On the investment side I beefed up the saving account as we are coming up on a few of our large annual bills (property tax and house insurance).  While this should have been going on for the last few months it occurs to me that I forgot to reset the automatic transfers for this year.  Not a huge problem, but it may screw with my annual saving target is I’m not careful.

Any questions?

5 thoughts on “Investment Update – May 2013”

  1. Well done, seems like you are both doing well. Likely once I actually get the mortgage paid in full I will combine my budget and net worth updates each month and do the same as you have. We have a long way to go with investments but I look forward to the journey. Thanks for sharing.

  2. @mochimac,

    True, there is a lose of control with Mint to a degree, but it is worth it for me to avoid the calculations. I could still remove those accounts from the summary data. I just had to dig into the settings to pull them out.

    Tim

  3. Random question but somewhat related. I had a plan to pay off my mortgage with increased payments and then start investing more once mortgage free. Instead I have toyed with the idea of keeping my mortgage payments at a minimum and continuing to invest in the market with the cash i would have put towards the mortgage. It will give less peace of mind, but increased net worth in the long run with typical returns. what are your thought on this stretegy?

    Thanks.

  4. @Brandon,

    Either option can work out in the end. It depends on your tolerance for risk (low market returns vs higher mortgage rates). I personally went the pay off the mortgage first route which worked out well for me, but then again I didn’t feel too confident at the start with my investing knowledge, so I learned more while paying off the mortgage. Now I’m more ready to handle investing.

    Do what works for you. In this case, I don’t think there really is a better way…it just depends on your particular situation and what you think will happen.

    Tim

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