Nov 2017 – Net Worth

This posts are in a transition phase, so please be patient as I work out the changes over the next few months.  In that end, the focus of these posts will now shift from increasing our net worth to balancing our income & investment gains versus our spending.

The following is an update of Tim’s early retirement.  Please note we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average but I’m just starting to track this as of last month.

Investments

Accounts

RRSP $64,000
LIRA $17,380
TFSA $87,390
Pension $172,130
Wife’s RRSP $91,190
Wife’s TFSA $81,630
Wife’s Taxable $53,010
High Interest Savings Account $53,130

Investment Net Worth $619,870 ($4,780 increase over last month from $1700 contributions, and investment gains $3,080 )

Home Equity

Estimate $395,000

Income

To keep things simple I’m only going to track what income comes into our main ‘house’ chequing account.  I won’t be tracking my wife’s or my businesses income as those don’t really matter until the money moves over to the ‘house’ account. Also I won’t track investment gains since that is covered above.

  • Tim’s Vacation Income: $1700
  • Wife’s Monthly Payment to House: $2015
  • Child Tax: $310
  • Total Income: $4025

The high transfer from my wife’s business was her annual payment for her football season tickets which are due on Dec 1.

Spending

Last Month $4515

Christmas shopping was in full swing in November which consumed around $1300 and we did our annual visit to the dentist which was another $880.

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

Trailing Last 12 Month Renovations $9254

Trailing Last 12 Month Average Everything Else $2891 (or $34,700 for the last 12 months)

Results

Net Worth ~$1,014,870

Investment Gains & Income/Spending Ratio = (3080+4025)/4515 =1.57 (Target 1 or higher)

Commentary:

So by the way, yes I was ignoring this blog mostly this month.   I was working on my novel and wrote 52,000 words or so (which would be around 208 pages or 70 blog posts…aka over a year’s worth of posts in a single month).  I’m still not done the novel but I am scaling back on the writing pace so you should see more blog posts in December.

We did a bit of financial house cleaning and drained the excess cash off the TFSA and taxable accounts and moved that over to our savings account.  I had planned on looking at if we need to rebalance the index funds in the RRSP accounts but didn’t get around to that yet.  So that will be a December project.

I’m pleased to see the investment net worth is still going up even with us now taking money out for our expenses.  As I mentioned in my previous post we got a bit of extra cash from my old job this month and that just got dumped into savings as a contribution for now.  Once we get to the New Year it will likely get dumped into a TFSA account.

Any questions?

(click to make bigger)

7 thoughts on “Nov 2017 – Net Worth”

  1. One question I had been meaning to ask. Long time reader by the way. Why did you retire towards the end of a calendar year? Instead of just earning enough in the following calendar year up to the basic personal amounts and earn just enough income before you would start paying any income tax?

  2. @Samuel – Thanks for reading! Very good question. Prior to getting closer to the end of my career I had a rough plan to retire in the spring. That way I could do what you suggested and work a bit into the new year to max out the basic deduction and then leave work and enjoy the spring/summer. In the end, I changed my mind because I knew that I wouldn’t be ready for spring 2017 and I didn’t want to wait until the spring of 2018 to retire. So short answer, I had the money and I was impatient so I figured the fall would be fine. It ended up working well enough.

  3. Hi Tim.
    Thanks for sharing your experience.
    I’m late in my retirement planning, well, at least I’m thinking of it, right?
    I decided to look for some knowledge sharing on Internet, so I’ve found your blog.
    This is the first post I read, but I’ll read from the begin and also tell the wife do read it to. We don’t need to re-invent the wheel, right?
    Unfortunately we’ll not plan for an early retirement, we both are 44yo …. but I don’t want to rely on pension. We already have some investments that I want to take close care and to be focused on the long run.
    I’m looking forward to reading your blog and learning from you.
    Blessings!

    Cleuber

  4. Woot, Woot! 1.57 Investment Gains & Income/Spending Ratio, 52000 words,…sounds like it was a productive month. Keep it up!

    Also, thanks for sharing your FIRE expenses. There are some costs we might not think about when we are still working and employer covers them such as dental costs.

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  5. Amazing 52,000 words in one month. Is the novel on personal finance ? I was also wondering like Samuel about retiring at the end of the calendar year. But like you said, if you have the money why wait.

  6. @Steve – Nope, no personal finance in this novel. I do plan on another PF book in 2018 at some point. The new book will focus on the transition to retirement from working, so obviously I need to experience my own changes before I write about them. I will keep you all informed on when that happens.

  7. I retired at 45, three years ago. A few tips, I did the first year basically just backpacking around India, Asia and New Zealand. Work was a large part of my social life and made a lot of new friends. Some old friends were critical of my new lifestyle from corporate mobster to happy go lucky traveller. So there is a transition phase to go through. I dont tell people I am retired as tired of having to explain myself, so I just say I have a small real estate business that I work on remotely (which is sort of true as have investment properties). I do a monthly report and accounts to make sure my net worth is not shrinking and to budget going forward. Over last three years it has done realy well and my investments are super diversified. Other than this monthly review I no longer have any link to money matters other than keeping abreast of stocks. I only occaisionaly think of work and that whole period of my life. I am now focused on staying healthy, trying to be socially more reaponsible and some magic travel trips. 2018 I have two hiking.trips to New Zealand planned, plus another in Swiss Alps. I am currently in Philippines learning kitesurfing and taking boxing lessons from local champ. Home for Christmas to see Mum

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