Jan 2015 – Net Worth

The following is an update of Tim’s plan to retire early in 39 more months.  Please note we are mortgage free.

Our ultimate goal between investments and the home equity is a net worth of around $1 million.  The investment part of that target is $600,000 (or higher).

Investments

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

RRSP $41,220 ($0), [+$1880]
LIRA $14,860 ($0), [+$170]
TFSA $54,840 ($3000), [+$4500]
Pension $117,690 ($3956), [+$3594]
Wife’s RRSP $72,760 ($0), [+$3520]
Wife’s TFSA $46,660 ($5,500), [-$1570]
High Interest Savings Account $2320 (-$4150),[+$0]

Investment Net Worth $350,350 ($8306), [+$12,093 or +3.4%]

(YTD Contribution: $8,306), [YTD Gain: $12,093 or +3.4%]

Home Equity

Estimate $400,000

Spending

Last Month $1054

Honestly the only odd things we really spent much on was $33 in ebooks and about $50 taking my sons to a hockey game.  Otherwise a slow spending month.

Trailing Last 12 Month Average $2521 (or $30,254 for the last 12 months)

Results

PF Score: 24.8 {Target 32}

Net Worth ~$750,350

Commentary:

Well you might have noticed at the start of this post I now have a new long term target: $600,000 in investments. I’m not too particular about the house equity going up or down by a fair margin so while the million net worth would be nice I’m not going to panic if we are short of it.

To meet this goal I need to average $5000 in contributions per month or $60,000 per year.  This will be a step up from our usual savings, but should be doable due to several things:

  • Our base savings is around $50,000 per year.  So we are short around $10,000.
  • I just got a raise which should cover about $2000/year.
  • The new income splitting tax credit should give us an extra $2000/year.
  • We paid off our car in Dec 2014 entirely and so that cash flow should give us another $6000/year to finish up the missing amount.

Part of my compensation from work involves a lump sum contribution to my pension at the start of the year, hence the noticeable jump in that account’s value.  The other oddity was I moved that money stuff into savings back in December and we put it into my wife’s TFSA.

Investment performance was a bit nuts this month with a just over $12,000 gain for the month. Ya! Nice way to start off the year.

Any questions?

Jan 2015 Investment Net Worth

(click to make bigger)

4 thoughts on “Jan 2015 – Net Worth”

  1. Yeah, what’s your current investment equity allocation? I just did a search and only found info from 2007 or something. My investment performance was nuts last month too. Much of it must have had to do with the US and international index funds (likely both measured in USD) skyrocketed because of currency fluctuation. …At least I think that’s what it was? The S&P itself just seems to flounder around lately, yet the value of the fund has gone bonkers high. The Bank of Canada’s unexpected drop in interest rates also raised the value of bonds. (While lowering their yield.)

  2. @Edward,

    I’m in EFT’s but a similar allocation for equities in the RSP accounts: crudely 25% each of bond index, Cdn index, US index and international. The pension is much more heavily weighted to bonds (~50%), but similar spread on the rest. TFSA are individual stocks but all Canadian.

    Tim

  3. Hi Tim,

    To confirm, you plan on retiring with $600k in investments? What would your annual expenses look like at retirememt in that case? Unexpected expenses?

    Robert

  4. @Robert – If you read the Freedom 40 in 40 series I go into more detail, but yes $600K investments to cover around $22K expenses. We plan some part time work in the first few years to cover the remaining $8K spending (which includes unusual expenses at a total of $30K/yr) and down the road likely downsize the house to add the remaining investment cash to shift to full retirement.

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