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Monday, January 26, 2015

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?

Nov 2014 – Investment Update

Posted by Tim Stobbs on December 11, 2014

Here is our third month of these updates, which brings us back up to where we should be.

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 $39,280 ($0), [+$630]
LIRA $14,750 ($0), [+$300]
TFSA $48,530 ($0), [+$1850]
Pension $106,940 ($1000), [+$1720]
Wife’s RRSP $69,120 ($0), [+$1080]
Wife’s TFSA $43,830 ($0), [+$1680]
High Interest Savings Account $1120 (-$730),[+$0]

Investment Net Worth $323,570 ($270), [+$7260 or +2.2%]

(YTD Contribution: $41,221), [YTD Gain: $25,879 or +8.7%]

Additional Lump Sum Payment to LOC: $8000 (YTD total)

Average Monthly Gain (12 month rolling) $2377

Spending

Last Month $5995

Nope, that isn’t a typo, either.  This month was full of odd spending.  First up we started Christmas shopping.  Then we bought $2000 in gift cards as part of a school fundraiser, so I just prepaid for the next six months of groceries.  So the good news is this should balance out over the long haul.  It just looks messy right now.

Trailing Last 12 Month Average $2681

Results

Number of months trailing average spending covered by trailing investment gains: 0.89 {Target 1.0 or higher}

PF Score: 22.5 {Target 32}

Net Worth ~$723,570

Commentary:

So in summary, Sept sucked, Oct was better, but Nov was great! It was good to see another positive month for gains.  As you can notice now with the size of our investment net worth I see the shifts in the market much more impacting our gains and losses.  So a swing up or down $5000 is fairly easy to see in a month.

Again we put some extra cash on the LOC to continue to pay it down.  We should have about one more lump sum payment in Dec and it should be done.

Any questions?

(click to make bigger)

Nov 2014 Investment Net Worth

Oct 2014 – Investment Update

Posted by Tim Stobbs on December 10, 2014

Here is our second month of trying to catch up on this updates.

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 $38,650 ($0), [+$530]
LIRA $14,450 ($0), [+$0]
TFSA $46,680 ($0), [+$1350]
Pension $104,220 ($1000), [+$390]
Wife’s RRSP $68,040($2000), [+$1590]
Wife’s TFSA $42,150 ($0), [+$570]
High Interest Savings Account $1850 (+$600),[+$0]

Investment Net Worth $316,040 ($3600), [+$4430 or +1.4%]

(YTD Contribution: $40,951), [YTD Gain: $18,619 or +6.4%]

Additional Lump Sum Payment to LOC: $6000 (YTD total)

Average Monthly Gain (12 month rolling) $1794

Spending

Last Month $648

Nope, that isn’t a typo.  This was our lowest spending month ever.  Even with us hosting Thanksgiving for the family.  How?  Just a bit of dumb luck and being busy.  It’s hard to spend money when you are really busy doing other things that don’t cost you anything.

Trailing Last 12 Month Average $2651

Results

Number of months trailing average spending covered by trailing investment gains: 0.67 {Target 1.0 or higher}

PF Score: 22.5 {Target 32}

Net Worth ~$716,040

Commentary:

Well after last month’s horrible results, it was nice to see a bit of bounce back this month.  It also helped my wife managed to push some extra cash into the market on towards the low end so when it came back it helped push up her RRSP nicely.

Again we put some extra cash on the LOC to continue to pay it down.  I want to use that cash flow for those payments switched over to supporting investments in 2015.

Any questions?

(click to make bigger)

Oct 2014 Investment Net Worth