Aug 2014 – Investment Update

[Sorry for the lack of posts lately, been insanely busy at work and home plus me being sick (or the kids being sick) = no writing.]

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 $38,336 ($100), [+$20]
LIRA $14,660 ($0), [+$280]
TFSA $46,800 ($0), [+$1510]
Pension $103,020 ($1000), [+$1320]
Wife’s RRSP $66,490($2000), [+$20]
Wife’s TFSA $42,330 ($0), [+$1090]
High Interest Savings Account $1560 (+$600),[+$10]

Investment Net Worth $313,200 ($3700), [+$4250 or +1.4%]

(YTD Contribution: $36,661), [YTD Gain: $20,069 or +6.9%]

Average Monthly Gain (12 month rolling) $2872

Spending

Last Month $3466

We bought about $1900 in cork flooring, take that out and it was a great month.  By the way, my wife is thrilled to have her new kitchen floor finally in and I finally kept my word after promising on national TV (no pressure, right?).

Trailing Last 12 Month Average $2585

Results

Number of months trailing average spending covered by trailing investment gains: 1.1 {Target 1.0 or higher}

PF Score: 23.0 {Target 32}

Net Worth ~$713,200

Commentary:

So for basically ignoring our money for the month it did fine just on its own.  I so wish other things in life could be so easy at points.  Sigh.  Anyway the RRSP accounts are switched over, but I have yet to have time to buy EFTs so they are just in cash for the moment, which is fine as I need to do a bit of research on which ones we want to buy.  That will be a project for Sept.

Our spending will likely average a bit higher here for a few years as we start to work on our house maintenance and reno list.  For example, the roof singles needs doing next year.  We plan to also redo the kitchen in phases.  Next year will be new sink, taps, counter top and back splash.  So the PF score will likely take a slight hit as that higher spending gets rolled in.

Any questions?

(click to make bigger)

Aug 2014 Investment Net Worth

2 thoughts on “Aug 2014 – Investment Update”

  1. Hi Tim, just want to pose this question to the FI community, since you mention it in your post; how do you prioritize early retirement goals and home improvement? I have paid off my mortgage years Ago and don’t plan on moving for many years, if ever. We have two small children and plenty of room in our home. However, the bAsement isn finished although it isn’t used that often we cod do some great things with it. Aside from efficiency upgrades and cost saving renos( windows/ metal roof) we haven’t done alot aesthetically. I’m conflicted about making Plans with hubby that could cost hundreds or more when it could be put towards ER. On he other hand, we are not spendy people in other areas and if I’m going to stay in this home for 20 more years why not deck it out? How do you determine what’s worth doing when your not planning to sell?

  2. Hi Tina,

    Great question. Actually I liked it so much I’m going to write an entire post in reply. But in summary, the ‘must do’ maintenance stuff just gets done regardless. The ‘it would be nice stuff’ we tend to spread out over a number of years, so it becomes a lower level constant spending rather than dropping like 10K in a single year.

    Tim

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