May 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 $60,030
LIRA $16,590
TFSA $86,810
Pension $164,870
Wife’s RRSP $88,870
Wife’s TFSA $76,960
Wife’s Taxable $50,560
High Interest Savings Account $33,190

Investment Net Worth $577,880 (increase of $5890 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $10,069

So this was officially the second higher spending month for us…like since I started tracking (the highest was when we bought our car in case you were wondering).  The good news was that $7159 was the new roof put in at the start of the month.

Our other big spending spots were income taxes owing for $588 and then finally we paid to put our kids in a science and technology day camp for a week this summer for about another $500.

As I mentioned last time I’m breaking out the renovations separate from the rest of our spending this year.

Trailing Last 12 Month Renovations $9509

Trailing Last 12 Month Average Everything Else $2750 (or $33,006 for the last 12 months)

Results

PF Score: 29.5 {Target 31}

Net Worth ~$972,880

Commentary:

Well you might be wondering how we even managed to increase our net worth with all that spending going on?  Well there was a bit of good luck in that work paid out a bonus which I wasn’t expecting.  It was a nice surprise as I figured we would be a net worth decrease for the month.

Any questions?

(click to make bigger)

8 thoughts on “May 2017 – Net Worth”

  1. Thanks very much for the update! A couple questions:

    – Have you ever thought about estimating (perhaps from past bills) your average annual renos/maintenance/repairs costs for your house and simply adding it to your “everything else” sum? I would think this would probably provide a better, and more stable, sense of irregular-timed, but eventually necessary home ownership costs. But, I am not a home owner myself, so I have not actually had to do that exercise in my own tallies of “what do I need post-RE”.
    – What would you say your annualized home ownership expenses would be if you had to figure them?
    – What is the pension figure based on? Curious because I have a Defined Benefit pension, and for my calculations I use the commuted value less expected tax (as it would be too big to all get LIRA sheltering).

    Thanks a lot for your writing!

  2. @Larry – I don’t typically include long term averages on my monthly reports since this is about actual spending results. When planning your retirement, yes you should include something to cover longer term house related costs (if you own the property). The issue of course is the amounts depends a lot of factors: age of the house, how big of a house, are you including just maintenance issue or improvements…I think you get my point. I would say use at least $1000/year for a long term average and then adjust from there depending on what you know about your property increase it. So a 100 year old fixer upper you would need a lot more than that. The pension is defined contribution, so I can login and find out the exact value at any point.

  3. @Scott – Ha, funny, but close to true. I actually picked a date almost a year ago with the idea that I would likely exceed my goal by a bit. A little extra money is nice to have anyway. I’ll let you all know the date after I file my official notice at work.

  4. Regarding your TFSA. I am wondering the total you had contributed(counting 2017). The max allowed to date is $52,000.
    You have over $86,000 in value now which is pretty good even if $52,000 was invested.

  5. @Sherry – Cost of living is okay. We lucked out and bought a house prior to the boom which helps a lot. I suppose it likely has something to do with how much you spend vs us. After all you have more trips overseas than us (I know some is to visit family) and we plan to do some work for a while…more semi-retired than full on retired which also changes the numbers a lot.

  6. @Canuckguy – Yep, both TFSA are maxed for contribution room. I’m happy with the return, some of which is just reinvesting dividends and the rest if just some good luck on the particular stocks in the account (which offsets my ones that have lost money).

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