April 2017 – 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 $582,000.

Investments

Accounts

RRSP $59,700
LIRA $16,470
TFSA $86,175
Pension $161,650
Wife’s RRSP $88,370
Wife’s TFSA $78,150
Wife’s Taxable $51,060
High Interest Savings Account $30,410

Investment Net Worth $571,990 (increase of $11,190 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $1741

Our life insurance came due this month for $324.  I toyed with the idea of reducing our coverage again, but decided to leave it until next year.

We also bought a new dining room table.  We honestly were not even looking to replace our current set until my parents mentioned they were downsizing and wanted to sell their solid oak table and chairs for $500.  It needs a bit of work to restore the finish but in very good shape overall.  Given we have family and friends over a LOT for meals, it seemed like a good investment to buy a table that can seat more people.

Well this month we didn’t actually spend money on renovation, instead I signed a quote and booked our roofer to replace the shingles on the house.  That should occur in the next month or two (depending on the weather of course).  Since this cost will end up being a bit huge I’ve decided to track our spending on renovations as a sub-total this year as it will heavily distort our spending for the year.

Trailing Last 12 Month Renovations $2350

Trailing Last 12 Month Average Everything Else $2656 (or $31,874 for the last 12 months)

Results

PF Score: 30.3 {Target 31}

Net Worth ~$966,990

Commentary:

You think I would get used to setting a target and overshooting it by now? But somehow it keeps throwing me a bit that our investments keep going up by over $10,000/month (about half of that increase was contributions).  I suppose on the plus side a bit extra money at the end of our plan really isn’t going to hurt us.  It just adds a bit to our safety margins which honestly is nice to have.

Of course this does mean that looking at the numbers is getting less and less relevant.  I’m now just counting down the time until I leave (and no I still haven’t told you that date yet…I won’t until I provide my official notice at work).

Any questions?

Investment Net Worth April 2017

(click to make bigger)

5 thoughts on “April 2017 – Net Worth”

  1. As a fellow Canadian, the declining exchange rate (with the U.S.) dollar is a factor I can’t control. It has an effect. What do you think of the value of deferring property taxes since the interest rate is less than investment/savings rates?

  2. Hey Tim. I’m in a similar situation as yourself; 47 yrs old, shooting for 50 (or sooner!) for the Canadian Dream.

    I see you’ve pegged your home equity close to $400K. Again – same situation on my side. Have you ever tossed around the numbers on owning vs renting? On my side, if I had $400K extra in investments instead of home equity, that would certainly help to provide additional income to cover the rent of a very nice residence actually — and a nice residence where someone else would be on the hook to pay for new shingles, new furnace, general up-keep, etc. We own our current house and we love it – but the reality is, even though we 100% own our home, there are annual costs that need to be budgeted to cover annaul maintenance and property tax. (In Ottawa, our property tax alone is $4000/yr for our modest home.)

    Just wondering your thoughts on that, or maybe if you’ve covered this off in a previous blog entry.

    .RonB

  3. Fellow Canuck here.

    Re CAD: depreciation has been positive for USD equity portfolio but negative for any planned trips to same.

    Re home equity, I have benefited from long run up in Vancouver house prices. However with 3 teenage kids at home, downsising options are limited. Defering property taxes seems a no brainer.

  4. @K. McGarrett – Deferring your property taxes is the same basically as leveraging your portfolio (ie: borrowing to invest). Generally I avoid it as it can also magnify your losses. It can work to help increase wealth but it takes a long time to work out. Don’t you already hold some US investments? That should provide some balance to your portfolio. Hope that helps.

    @RonB – Actually I haven’t written on it because we haven’t considered it. It would be WAY out there for us to consider that (10 years +). It can work out for you. You just have to consider the costs of owning vs renting and the expected rate of return on your money vs the cost savings of not paying rent. The other BIG part of that is are you changing markets? If you leave Ottawa to move to a smaller more rural location that could be a bigger driver than rent vs own. Good luck on what ever you decide.

    Tim

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