Sept 2016 – Net Worth

The following is an update of Tim’s plan to retire early.  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 $550,000 (or higher).

Investments

Accounts

RRSP $52,040
LIRA $15,440
TFSA $74,900
Pension $148,390
Wife’s RRSP $82,540
Wife’s TFSA $63,810
Wife’s Taxable $57,200
High Interest Savings Account $2450

Investment Net Worth $496,760 (increase of $8300 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $1659

Not too much this month other than those new towels.

Trailing Last 12 Month Average $2657 (or $31,889 for the last 12 months)

Results

PF Score: 28.0 {Target 31}

Net Worth ~$891,760

Commentary:

So close to crossing that half a million investment mark, oh well, we should likely cross that next month.  But oddly enough I didn’t think we would hit that this year (my prediction was Feb 2017).  The pace of investment increases is well past what I was planning as you have to recall at the end of January we were only just past $400,000.  So we are on track to gain $100,000 in about nine months, which sort of blows my mind.

Any questions?

Sept 2016 - Investment Net Worth

(click to make bigger)

7 thoughts on “Sept 2016 – Net Worth”

  1. Your wife’s pension of $148,000; is that a cash value, or would it bea smaller, monthly payment, when eligible? Just curious. I’ve been retired since 2004; at age 38.

  2. @Rick – You must be reading the wrong line…that $148,000 is my pension. It’s a defined contribution plan so that is the cash value. Way to go on your early retirement.

  3. I also had a question re: pension. Are you taking that money out of your pension plan or are you remaining in the program with monthly pension payments at a later date? My husband has a (relatively) large pension with the fed government and we’re vacilating about pulling it out or leaving it in.

  4. When I leave work, I can unlock about 30% of my pension and move it an RRSP. The remaining money will stay with in the plan and I’ll take out monthly amounts after I turn 50. As to your situation, with the low interest rates you might get a nice lump sum if you pull it out of the pension plan, the issue is do you feel comfortable managing it yourself? Also with the plan likely being defined benefit you might want to just leave it in since you don’t have any investment risk then. Good luck on what ever you choose.

  5. Thanks, Tim… yes that’s exactly what we’re grappling with. Especially with the low interest rates, the amount is substantial (approx $600K) and my husband will have to take a major hit on the monthly payment if he wants to start collecting any earlier than 60 (he’s only 44). It’s the risk factor that makes you pause and think. But then he’ll also have to live a very long life for it to have been worthwhile staying in the plan! I hope that’s the case of course!

  6. Awesome year you are having. and an awesome september you are having. those are just all around unbeatble numbers. keep it up

  7. Thanks for sharing your journey!

    Just started taking retirement savings seriously again after not thinking about it for a number of years.

    Very motivating to see what you have accomplished over a number of years and the choices you have made. Your investment net worth graph is particularly effective.

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