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Saturday, November 1, 2014

July 2014 – Investment Update

Posted by Tim Stobbs on August 1, 2014

The following is an update of Tim’s plan to retire early.  Please note we are mortgage free, and the house equity isn’t part of the retirement plan.

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 use a trailing 12 month average on spending (but excluding vacations) and a trailing 12 month average on investment results.

Investments

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

RRSP $38,220 ($100), [+$20]
LIRA $14,380 ($0), [+$30]
TFSA $45,290 ($0), [-$110]
Pension $100,700 ($1000), [+$600]
Wife’s RRSP $64,470($3000), [+$50]
Wife’s TFSA $41,240 ($0), [+$440]
High Interest Savings Account $950 (-$471),[+$0]

Investment Net Worth $305,250 ($3629), [+$1021 or +0.3%]

(YTD Contribution: $32,961), [YTD Gain: $15,819 or +5.6%]

Average Monthly Gain (12 month rolling) $2471

Spending

Last Month $2641

This month included my $1071 annual house insurance bill.

Trailing Last 12 Month Average $2473

Results

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

PF Score: 23.7  {Target 32}

Net Worth ~$705,250

Commentary:

Just squeaked past the $100,000 mark in my pension, which is a nice little milestone to pass.  Also we finally got off our butts and have arranged to do the paperwork to move our RRSP accounts over to self directed, so I’ll be putting those back in the stock market in ETFs likely in August.

I bought another 100 shares in BCE in my TFSA and my wife is looking at buying some RY in her TFSA account, but she is slightly short of cash.  So she has a limit order out in case it drops that low (somewhat unlikely), but otherwise she should enough cash in another quarter.  Yield based on contributions is around 6.5% for both accounts combined.

Spending was noticeably up, but mainly from our house insurance coming due.  Overall not a bad month.

Again our spending and investment metric for the last 12 months are almost equal, so rather than worry about this I’m going to leave that metric likely until the end of the year.  Then I’m just rolling around ideas to replace it.  Currently I’m thinking of perhaps just having a flat target of like $600,000 for investments and then adjusting it annually for inflation.  Then as I get closer to end I’ll add a secondary target to track the cash flow from the accounts.  I’ve adjusted the scale on my graph to show $600,000 at the top. So we are a little over half way there right now.

Any questions?

(click to make bigger)

July 2014 Investment Net Worth

Comments

5 Responses to “July 2014 – Investment Update”
  1. Tawcan says:

    Good job in reaching $100k in your pension. You might be able to get some RY shares at a lower price in the next few days since the market has dropped by a few percent.

    23.7 PF score is awesome, according to your definition 25 is financial independent. You’re very close!

  2. Matt says:

    I would be intrested in a post on what investments you have and how you select them.

  3. J. Money says:

    Looking good! You’re getting closer and closer to the next rung on the blogger net worth chart ;)

    http://rockstarfinance.com/blogger-net-worths/

  4. Pm says:

    I agree, would be really neat to see which stocks you own. Great site!

  5. Steve says:

    Tim,
    Enjoy reading your blog and updates. I like your concept of the 12 month income growth vs expenses as an easy way to measure progress. I have a (pretty sophisticated) retirement planning spreadsheet that I provide for free at http://pabroon.blogspot.ca/ I put your numbers from your calculation series into this and it agrees that you could retire at 42.

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