Sept 2013 – Investment Update

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 (but excluding vacations) and investments for the calendar year to date.

Investments

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

RRSP $34,860 ($200), [+$210]
LIRA $12,860 ($0), [+$220]
TFSA $33,100 ($3500), [+$410]
Pension $78,680 ($1050), [+$1340]
Wife’s RRSP $39,560($0), [+$410]
Wife’s Investment Account $85 ($0), [$0]
Wife’s TFSA $28,700 ($0), [+$560]
My Investment Account $70 ($0), [$0]
High Interest Savings Account $1310 (+$600),[$10]

Investment Net Worth $229,325 ($5350 ), [+$3480 or +1.5%]

(YTD Contribution: $31,048), [YTD Gain: $15,576 or +8.5%], YTD Avg Monthly Gain $1730

Spending Averages

Last Month $2095

Trailing Last 12 Months (less mortgage payments) $3256

Results

Number of months spending covered by investment gains: 0.53 {Target 1.0 or higher}

Commentary:

It’s official, I’m procrastinating on closing our investment accounts.  I think perhaps because they are such a small amount of money I just don’t worry about it.  Yet the small things do matter over a longer period of time.  For example, I’m closing in next month on one year of being mortgage free.  Paying off the mortgage didn’t happen by ignoring small things, but rather many little thing over a long period of time.  Any way consider my head smacked and reminder given to myself to get on closing those accounts.

This also marks the month where I have finished fully funding my TFSA account.  My wife’s TFSA should be finished next month.  I’ll have a post up later in October with some details on those accounts, like what we are invested in now and the yields.

Any questions?

(click for a bigger version)

Sept 2013 Net Investment

4 thoughts on “Sept 2013 – Investment Update”

  1. If you close the investment accounts, what money can you draw on prior to federal retirement ages? I’m US so I’m not familiar with all the account acronyms and rules.

  2. @Mel – In basic terms RRSP = 401k and Roth IRA = TFSA, but with a few differences. Our TFSA have no age limits at all, so I could take it all out (including gains) tax free today or when ever. Also the majority of my RRSP holdings can be taken out at any age, I just have to pay tax on it. The only true age limited part of my investments are my LIRA (Locked In Retirement Account) at age 55 and about 2/3 of my pension at age 50 (the remaining 1/3 can be transfered to an RRSP and taken early). Hope that helps.

  3. I’m dealing with this now. Have to buy out my phone for $275 but I’ll get a way better plan if I can do so. I love that Wind mobile is making all of the cell carriers make better deals

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