Category Archives: Net Worth

Oct 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 $63,010
LIRA $17,200
TFSA $90,100
Pension $170,390
Wife’s RRSP $90,180
Wife’s TFSA $82,030
Wife’s Taxable $53,680
High Interest Savings Account $48,500

Investment Net Worth $615,090 ($20,060 increase over last month from $3951 contributions, and investment gains $16,109 )

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: $5840
  • Wife’s Monthly Payment to House: $730
  • Child Tax: $310
  • Reimbursement of Glasses and Eye Exam (Tim Work): $440
  • Total Income: $7320

Spending

Last Month $3806

As I previously mentioned our dog had two rounds of surgery last month so that was $920.  And we had our eye exams and my wife bought new glasses and sunglasses so that’s another $1150. And I also took a trip to Calgary to visit a friend one weekend.

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 $10,285

Trailing Last 12 Month Average Everything Else $3051 (or $36,622 for the last 12 months)

Results

Net Worth ~$1,010,090

Investment Gains & Income/Spending Ratio = (16,109+7320)/3806 =6.2 (Target 1 or higher)

Commentary:

And with that I’m done work and the amazing cash flow of income that goes with it.  Ugh, the scary part of early retirement now begins, but that is why we have such a big cash reserve in our high interest savings account.  It has our 2018 TFSA contributions already saved, our $20K slush fund and the cash to help support us over the next year of so.

On the plus side the markets made a nice surge to the end of the month which has helped put my mind at ease as we cracked that magically $1 million net worth mark without the kid’s RESP account being included.  I have hoped to cross that threshold before leaving work and just managed it which was a nice surprise after a rather flat summer of market returns.

Any questions?

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Sept 2017 – Net Worth

Okay, I’m done being at work but I’m still on vacation until near the end of October, so in preparation of the next phase of my life (aka: early retirement) I’m making some changes to these net worth posts.  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 this month.

Investments

Accounts

RRSP $61,180
LIRA $16,860
TFSA $86,440
Pension $166,410
Wife’s RRSP $87,540
Wife’s TFSA $78,950
Wife’s Taxable $52,180
High Interest Savings Account $45,470

Investment Net Worth $595,030 ($11,010 increase over last month from $6252 contributions, and investment gains $4758 )

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: $6560
  • Wife’s Monthly Payment to House: $500
  • Child Tax: $310
  • Reimbursement of Expenses (Tim Work): $290
  • Total Income: $7660

Spending

Last Month $2363

We renewed three passports for $377 but otherwise had a good month.

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 $9509

Trailing Last 12 Month Average Everything Else $2942 (or $35,305 for the last 12 months)

Results

Net Worth ~$990,030

Investment Gains & Income/Spending Ratio = (4758+7760)/$2363 =5.3 (Target 1 or higher)

Commentary:

While the markets finally had a decent month after being rather stagnate over the summer so that was a nice boost to the investment gains.  As I mentioned above I’m on vacation right now so we have continued to increase our savings until the end of October when I’m officially done work.

Any questions?

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Aug 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 $58,460
LIRA $16,530
TFSA $86,700
Pension $165,610
Wife’s RRSP $86,600
Wife’s TFSA $76,660
Wife’s Taxable $51,180
High Interest Savings Account $42,280

Investment Net Worth $584,020 (increase of $3,610 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $3155

Well this month was paying the car insurance for around $1000 and then new cell phones for the wife and I for another $220.

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 $2889 (or $34,672 for the last 12 months)

Results

PF Score: 28.2 {Target 31}

Net Worth ~$979,020

Commentary:

Well I finally past my investing target of $582,000 and I have to admit I’m a bit disappointed.  Why? Because I honestly thought I would be further along than I am right now.  The markets have been sluggish lately so while I’m past my target for investments I was hoping to have a bit more of a buffer prior to leaving work. So for the last two months most of the gains have been contributions rather than investment gains.  Oh well, that’s the way life goes at times.  Good thing we pre-saved most of the cash for the first year so this doesn’t matter a whole lot.

Any questions?

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