subscribe to the RSS Feed

Sunday, February 26, 2017

Jan 2017 – Net Worth

Posted by Tim Stobbs on February 2, 2017

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 $56,320
LIRA $15,930
TFSA $81,800
Pension $153,140
Wife’s RRSP $83,370
Wife’s TFSA $76,940
Wife’s Taxable $52,080
High Interest Savings Account $17,890

Investment Net Worth $537,470 (increase of $10,990 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $2886

Well this month included a few extras as we celebrated my older son’s birthday with going out for supper on the day of and held a party for him the following weekend (~$500).

Trailing Last 12 Month Average $2553 (or $30,642 for the last 12 months)

Results

PF Score: 30.4 {Target 31}

Net Worth ~$932,470

Commentary:

Well that stock market rally has really held pushed up our investment net worth in the last few months.  Honestly I’m almost making more in the market that I am taking home from my job.  It’s a fun feeling even if it is only a temporary thing.

Now to some investment updates.  I topped off my RRSP with a bit of money to increase my tax refund.  I’m trying to keep my available contribution room as close to zero as I can manage. And then we topped off our new TFSA contribution room for 2017.  Then we decided to sell off some of  my wife’s taxable account to fund our cash savings.   There was also some extra cash in some of our accounts we shifted out to our savings.

And finally our kids’ RESP balance reached $71,720 which isn’t included in the above summary (since it has nothing to do with funding our retirement plans).  Now add it in to our net worth, did you notice what happens? Yep, we hit that mythical seventh digit otherwise know as being a millionaire.  I’ll have another post on that later on in February.

Any questions?

Jan 2017 Invest Net Worth

(click to make bigger)

Dec 2016 – Net Worth

Posted by Tim Stobbs on December 31, 2016

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 $52,910
LIRA $15,830
TFSA $74,580
Pension $151,790
Wife’s RRSP $83,590
Wife’s TFSA $70,020
Wife’s Taxable $62,880
High Interest Savings Account $14,880

Investment Net Worth $526,480 (increase of $19,390 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $3339

There was a bit more Christmas shopping in this month. Yet the big purchase was my wife’s Rider season tickets which was $1270 for the pair.

Trailing Last 12 Month Average $2726 (or $32,714 for the last 12 months)

Results

PF Score: 28.2 {Target 31}

Net Worth ~$921,480

Commentary:

Out of curiosity, I looked up our investment net worth from last year.  Back in the end of Dec 2015 we had an investment net worth of $384,230, so for 2016 we went up $142,250 (yes that is a crazy high number).  That is also a slightly misleading number as we had some cash put aside that wasn’t showing up in these updates since I wasn’t tracking that account (our chequing account by the way, it’s never shown up in these updates since it is just a spot for money to move around).  I estimate that was perhaps ~$12,000 or so, so the actual increase in our investments was likely closer to $130,250, yet that still is an 33% increase in our investment net worth.  By the way, no I didn’t track our actual contributions this year.  I would estimate our contributions at around $60,000, so backing that out would mean a pure investment return of ~$70,250 or 17.7% (which kicks the crap out of my little 4.5% target). Compounding is a great thing! ;)

Our spending was up a for the year, but that is hardly surprising as I’ve been making efforts to get certain upgrades and maintenance issues done around the house prior to leaving my day job.  The trend will continue next year as we have some big ticket items coming up like new singles for the roof.

Any questions?

Dec 2016 Invest Net Worth

(click to make bigger)

Nov 2016 – Net Worth

Posted by Tim Stobbs on December 1, 2016

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 $52,280
LIRA $15,570
TFSA $72,000
Pension $147,830
Wife’s RRSP $82,540
Wife’s TFSA $66,480
Wife’s Taxable $60,800
High Interest Savings Account $9590

Investment Net Worth $507,090 (increase of $5480 over last month)

Home Equity

Estimate $395,000

Spending

Last Month $4250

Well this month included the start of our Christmas shopping (~$1000) and our water softener finally died.  Given I suspect it was the original one to the house, it was more than time for it to be replaced.  That set us back $1,150 for a new one to be installed.  By the way, the water in Regina is REALLY hard so this is not an optional purchase.

Trailing Last 12 Month Average $2587 (or $31,049 for the last 12 months)

Results

PF Score: 29.1 {Target 31}

Net Worth ~$902,090

Commentary:

Well as I mentioned previously this month I finally hit financial independence, which was a nice milestone to hit.  So now comes the really boring part of the plan: save cash.  If you were wondering I always knew I would need to save a fairly big cash buffer and I left it until last because I didn’t want the drag on the portfolio when I was trying to get it to grow.  Now that the portfolio is growing with very little effort on my part the saving the cash should really just take some time.

Any questions?

Nov 2016 invest net worth

(click to make bigger)