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Monday, May 1, 2017

Feb 2017 – Net Worth

Posted by Tim Stobbs on March 2, 2017

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 $582,000.

Investments

Accounts

RRSP $57,540
LIRA $16,220
TFSA $83,320
Pension $156,020
Wife’s RRSP $85,270
Wife’s TFSA $78,270
Wife’s Taxable $51,090
High Interest Savings Account $22,190

Investment Net Worth $549,920 (increase of $12,450 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $1651

My oldest son has been saving for his own laptop for the last six months and we agreed to pay half for it, so a good computer went on sale and I had to spend $400 to help buy it. I don’t regret a penny of the money I spent since he really wanted his own computer (except I am a bit jealous as his computer is now nicer than mine ;) )

Trailing Last 12 Month Average $2612 (or $31,355 for the last 12 months)

Results

PF Score: 30.1 {Target 31}

Net Worth ~$944,920

Commentary:

Ugh, when will this crazy stock market ride end? I mean I have gone up in almost $50,000 in investments in the last four months. I’m so ahead of my investment targets that it almost seems pointless to keep updating them.

In the mean time I have decided to NOT move my retirement date up anymore. I have a plan to quit later in the year and if I have some extra money when I get there so be it. This oddly feels better as I can stop running ‘what if’ things in my head and just plan to get some things done that I want to take care of prior to leaving work.

Any questions?

feb 2017 net worth

(click to make bigger)

Comments

9 Responses to “Feb 2017 – Net Worth”
  1. Domino says:

    Im a canadian too looking to lower my fees on investment. Im not a pro and I always was with a financial advisor for our mutual funds.. and our Etf funds too. But we have to pay that 1 percent fee for advisor.

    my simple question, were do you invest by yourself? Do you use robo advisor like Bmo or something…? I dont know were to start to get some money invested in index funds by myself and compare with our savings with the advisor.

    thanks for you information, gonna be very helpful.

  2. Tim Stobbs says:

    @Domino – Yes I invest by myself. All the RSPs are in index ETF. I don’t use a robo advisor and I actually don’t understand why people use them. If you can do some basic math you can rebalance your investment yourself in like 15 minutes a year. For more help check out http://canadiancouchpotato.com/. Dan is like the god of index investing.

  3. Matt says:

    Tim, you are getting very close to your goal. However with the market climbing very quickly recently (due to some potentially risky political activities), I feel there could be a lot of room for a correction. It is a good idea to keep working a bit to ensure some buffer in your plan.

    Are you using mostly equities indices in your portfolio now that you are close to retiring or adding more bonds?

  4. John says:

    @MAtt

    I think Tim is using a 60/40 split. He also said that he is not moving up his retirement date further.

  5. Domino says:

    Theres no point to move the retirement date further… the market can not be better than this, and it prroves that there will always be a degree of uncertainty, forever!

    when the market correct a little you could say I will more more until it is better! When the market is good you keep working becaus eit can just go down from there.. there is no end to this

    someday a man has to decide jump and he will see that everything s gonna be alright and just enjoy life not having to work anymore, not always living in fear. You gotta just let it be and enjoy

  6. Matt says:

    I completely agree that you should not try to time the market. However, a major market correction can occur at any time (with the Dow being at record high, now is definite possibility) it is important to have a buffer built into your plan. As Tim said, not moving up his retirement date will do just that.

  7. diharv says:

    @ Domino
    Yes , a man has to someday decide to jump but I have never seen anybody so eager to jump so early in life with so little put away . Yes his expenses are minimal and under control but life happens . Vehicles die or get wrecked , roofs wear out along with every other major and minor appliance . And kids get older and need more things and sometimes go off to post secondary school and most cannot possibly pay for it all themselves without parental help. Yes I realize RESPs are maxed but will it be enough ?
    Now I’m not knocking Tim and his goals and all he has achieved up to now but I will be watching and reading about his leap of faith with ever more interest . I am probably 12+ years older with probably enough to call it a career now but still not entirely sure I’m ready to pull the trigger. I guess that is why it is called a leap of faith as you can never be 100% certain and you just have to trust that all will turn out ok. And that is why Tim is writing the blog , and by sharing his thoughts and experiences , we can learn and apply them to our own lives . I think the whole point of all this is he is saying I am doing this and you can too.

  8. dkhas says:

    Tim,
    Great planning (the easy part) and excellent discipline (the hard part)! Congrats on your progress.
    Philosophically I am 100% aligned with you. However I wonder about the following:
    You are mortgage free, however this is $400k+ of capital that you could have working for you (in your current investing model) that could generate $20k+ per year (7-8%) while you pay a much smaller interest rate (<3 %). At your current spend rate, the difference could be more than 6 months of living expenses.
    Pardon me if you have answered this in the past, but with the cost of money being soooo cheap what is your reasoning for not leveraging a safe amount of equity from your home?

  9. Tim Stobbs says:

    @Matt – Yes, John had it correct. It’s about 60% equities overall.

    @diharv – Oh you have no idea the number of worse case scenarios I have run. In short, yes I can fail at this. I know this and I’m still going to take the chance, because in the worst case: I go back to full time work…that isn’t the end of the world if it occurs. But on the other hand, a LOT can go right and turn out better than I thought. So you are right, you never know, you just leap.

    @dkhas – I have considered it, but I’m not very fond of leverage. I’ve played with it in the past but I really don’t like the magnification of the losses than can occur. Besides, keeping the house let’s my wife do her business which gives us a return on that equity anyway. I don’t feel the need to expand that. Good question.

    Tim

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