Sept 2014 – Investment Update

Yes you are reading the date right on this.  I copied down the data for these updates and then promptly ignored them.  So for the next few days we will be stepping through three months of updates. 

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 $38,120 ($0), [-$220]
LIRA $14,450 ($0), [-$210]
TFSA $45,330 ($0), [-$1470]
Pension $102,830 ($1000), [-$1190]
Wife’s RRSP $64,460($0), [-$2040]
Wife’s TFSA $41,580 ($0), [-$750]
High Interest Savings Account $1250 (-$310),[+$0]

Investment Net Worth $308,010 ($690), [-$5880 or -1.9%]

(YTD Contribution: $37,351), [YTD Gain: $14,189 or +5.0%]

Additional Lump Sum Payment to LOC: $4000

Average Monthly Gain (12 month rolling) $2009

Spending

Last Month $2770

Insurance for the car was due, so that was just over $900 of the spending in Sept.

Trailing Last 12 Month Average $2488

Results

Number of months trailing average spending covered by trailing investment gains: 0.81 {Target 1.0 or higher}

PF Score: 23.7 {Target 32}

Net Worth ~$708,010

Commentary:

So we finally move the money over in the RRSP into the ETF and we immediate get our ass handed to ourselves in the markets.  Gotta love irony, eh?  Well the good news is this month was a clear demonstration that my one metric of 12 months spending compared to 12 month investment gains is a bit too sensitive to market fluctuations.  Good thing I’m getting rid of it at the end of the year.

Oh and to answer questions about that $4000 to the LOC.  Yes I have a balance on our line of credit, but that was offset by the value of the car so it was effectively zero on these updates.  I’ve decided to pay off that debt so to track that I’ve included a reference to it even if it isn’t showing up in the overall net worth calculations.

Any questions?

(click to make bigger)

Sept 2014 Invest Networth