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Wednesday, September 2, 2015

Feb 2015 – Net Worth

Posted by Tim Stobbs on March 3, 2015

The following is an update of Tim’s plan to retire early in 38 more months.  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 $600,000 (or higher).

Investments

Account (Contribution), [+/- Gain or Loss less contributions]

RRSP $42,430 ($0), [+$1210]
LIRA $15,350 ($0), [+$490]
TFSA $56,510 ($2500), [-$830]
Pension $117,690 ($887), [+$2222]
Wife’s RRSP $75,260 ($500), [+$2000]
Wife’s TFSA $48,010 ($0), [+1350]
High Interest Savings Account $2320 (+$600),[+$10]

Investment Net Worth $361,280 ($4477), [+$6,452 or +1.8%]

(YTD Contribution: $12,783), [YTD Gain: $18,546 or +5.2%]

Home Equity

Estimate $400,000

Spending

Last Month $1664

We prepaid for our veggies order for the summer already which was around $320.

Trailing Last 12 Month Average $2566 (or $30,795 for the last 12 months)

Results

PF Score: 24.7 {Target 32}

Net Worth ~$761,280

Commentary:

Well that’s the end of our TFSA contribution room for the year.  We finished maxing out both accounts (note there was a small error in Jan update that didn’t reflect a part contribution to my TFSA), so now we need to do some stock shopping.

Speaking of stocks the markets have done very well so far in 2015, which is interesting to note that the gains are exceeding our contributions…ah the joy of compounding! It’s nice to know that my money can grow faster than I can save it at times. ;)

We plan to get started on our taxes here right away and try to get our refund a bit earlier this year.  Normally I have had to wait until the bitter end to file because of the investment accounts, but I shouldn’t see any T3 slips this year as we moved everything into tax sheltered accounts a while back.  The only sad part is this likely won’t happen again as we will run out any contribution room in our RRSP and TFSA accounts this year and so will be back to taxable accounts at some point in 2015. *sigh*

Any questions?

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Jan 2015 – Net Worth

Posted by Tim Stobbs on January 30, 2015

The following is an update of Tim’s plan to retire early in 39 more months.  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 $600,000 (or higher).

Investments

Account (Contribution), [+/- Gain or Loss less contributions]

RRSP $41,220 ($0), [+$1880]
LIRA $14,860 ($0), [+$170]
TFSA $54,840 ($3000), [+$4500]
Pension $117,690 ($3956), [+$3594]
Wife’s RRSP $72,760 ($0), [+$3520]
Wife’s TFSA $46,660 ($5,500), [-$1570]
High Interest Savings Account $2320 (-$4150),[+$0]

Investment Net Worth $350,350 ($8306), [+$12,093 or +3.4%]

(YTD Contribution: $8,306), [YTD Gain: $12,093 or +3.4%]

Home Equity

Estimate $400,000

Spending

Last Month $1054

Honestly the only odd things we really spent much on was $33 in ebooks and about $50 taking my sons to a hockey game.  Otherwise a slow spending month.

Trailing Last 12 Month Average $2521 (or $30,254 for the last 12 months)

Results

PF Score: 24.8 {Target 32}

Net Worth ~$750,350

Commentary:

Well you might have noticed at the start of this post I now have a new long term target: $600,000 in investments. I’m not too particular about the house equity going up or down by a fair margin so while the million net worth would be nice I’m not going to panic if we are short of it.

To meet this goal I need to average $5000 in contributions per month or $60,000 per year.  This will be a step up from our usual savings, but should be doable due to several things:

  • Our base savings is around $50,000 per year.  So we are short around $10,000.
  • I just got a raise which should cover about $2000/year.
  • The new income splitting tax credit should give us an extra $2000/year.
  • We paid off our car in Dec 2014 entirely and so that cash flow should give us another $6000/year to finish up the missing amount.

Part of my compensation from work involves a lump sum contribution to my pension at the start of the year, hence the noticeable jump in that account’s value.  The other oddity was I moved that money stuff into savings back in December and we put it into my wife’s TFSA.

Investment performance was a bit nuts this month with a just over $12,000 gain for the month. Ya! Nice way to start off the year.

Any questions?

Jan 2015 Investment Net Worth

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Dec 2014 – Investment Update

Posted by Tim Stobbs on January 1, 2015

The following is an update of Tim’s plan to retire early.  Please note we are mortgage free, and the house equity isn’t part of the retirement plan.

To track my progress I’ve decided to track both my expenses and my investment gains.  So once the investments gains are consistently beating my expenses I’m financially independent and can stop working.  I use a trailing 12 month average on spending (but excluding vacations) and a trailing 12 month average on investment results.

Investments

Account (Contribution), [+/- Gain or Loss less contributions]

RRSP $39,340 ($0), [+$60]
LIRA $14,690 ($0), [-$60]
TFSA $47,340 ($0), [-$1190]
Pension $110,140 ($3022), [+$178]
Wife’s RRSP $69,240 ($0), [+$120]
Wife’s TFSA $42,730 ($0), [-$1100]
High Interest Savings Account $6470 ($5350),[+$0]

Investment Net Worth $329,950 ($8472), [-$1992 or -0.6%]

(YTD Contribution: $49,593), [YTD Gain: $23,887 or +8.1%]

Additional Lump Sum Payment to LOC: $10,653 (YTD total)

Average Monthly Gain (12 month rolling) $1990

Spending

Last Month $2518

This also included just under $1000 for vet bills for our dog which had some dental work done (and I thought human dentists were bad ;) ). So otherwise a very modest month given the holidays.

Trailing Last 12 Month Average $2653 (or $31,846 for the year)

Results

Number of months trailing average spending covered by trailing investment gains: 0.75 {Target 1.0 or higher}

PF Score: 22.9 {Target 32}

Net Worth ~$729,950

Commentary:

Ugh, 2014 is now over the dust has settled in the results.  Overall December was an excellent month for shoveling money away.  We parked $4750 in our savings for now, that will shift into a TFSA later in January.   We also put in the final lump sum of $2653 on the LOC to reduce that back to zero, so we are back to completely debt free again.

Overall contributions were nearly dead on for target at just under $50K, but that didn’t include the extra $10K that we put on the LOC as well.  So great year for savings.

Spending overall came out at just over $31K, which is fairly consistent for us (we hover around $30K a year in spending).  Of which we spent the following by categories (this is just a sample and doesn’t include our spending cash):

  • Groceries $3516
  • Restaurants $422
  • Gas for car $1084
  • Gifts and Donations $2406
  • Pets $1656
  • Cork Floor $1813

What is interesting overall is I’m ready to blow past my longer term target which was $350,000 by Jan 1, 2016.  Perhaps this is why I really don’t bother too much with longer term goals, I set them and then smash through them.  Sigh. I suppose there are worse problems to have.  Anyway, I’ve got a new longer term target I’ll be discussing shortly in a new series of posts.

Any questions?