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Saturday, December 20, 2014

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?

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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?

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Oct 2014 Investment Net Worth

Sept 2014 – Investment Update

Posted by Tim Stobbs on December 8, 2014

Yes you are reading the date right on this.  I copied down the data for these updates and then promptly ignored them.  So for the next few days we will be stepping through three months of 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 $38,120 ($0), [-$220]
LIRA $14,450 ($0), [-$210]
TFSA $45,330 ($0), [-$1470]
Pension $102,830 ($1000), [-$1190]
Wife’s RRSP $64,460($0), [-$2040]
Wife’s TFSA $41,580 ($0), [-$750]
High Interest Savings Account $1250 (-$310),[+$0]

Investment Net Worth $308,010 ($690), [-$5880 or -1.9%]

(YTD Contribution: $37,351), [YTD Gain: $14,189 or +5.0%]

Additional Lump Sum Payment to LOC: $4000

Average Monthly Gain (12 month rolling) $2009

Spending

Last Month $2770

Insurance for the car was due, so that was just over $900 of the spending in Sept.

Trailing Last 12 Month Average $2488

Results

Number of months trailing average spending covered by trailing investment gains: 0.81 {Target 1.0 or higher}

PF Score: 23.7 {Target 32}

Net Worth ~$708,010

Commentary:

So we finally move the money over in the RRSP into the ETF and we immediate get our ass handed to ourselves in the markets.  Gotta love irony, eh?  Well the good news is this month was a clear demonstration that my one metric of 12 months spending compared to 12 month investment gains is a bit too sensitive to market fluctuations.  Good thing I’m getting rid of it at the end of the year.

Oh and to answer questions about that $4000 to the LOC.  Yes I have a balance on our line of credit, but that was offset by the value of the car so it was effectively zero on these updates.  I’ve decided to pay off that debt so to track that I’ve included a reference to it even if it isn’t showing up in the overall net worth calculations.

Any questions?

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Sept 2014 Invest Networth