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?

(click to make bigger)

How to Avoid Being the Walking Dead

Once you give your notice to leave work often one of two things can happen:  you can be asked to complete a long list of items before you leave or everything you are working on is taken away from you immediately and you are left being bored until you leave.  The second can be referred to being a dead man/woman walking.

In my case, I really disliked the idea of being part of the walking dead.  I’ve never really been good at doing nothing and in fact I’ve been know to leave jobs that have long stretches of having nothing to do.  So I will admit, I had a plan to account for this situation should it come up.

You see I had a discussion with my boss a long while ago about the need to document my current responsibilities prior to leaving.  So we added a project to my work plan to do just that and for the last year or so I’ve been steadily working away at developing support documents so someone else can do my job.  While I had most of those done prior to giving notice I still have one major piece that I have barely started.  I did that on purpose.  Why? Because the project doesn’t depend on anyone else.  I have a lot of freedom on how this gets done and it is important for the company that it get completed prior to me leaving.  Hence it is really unlikely I will run out of work to do prior to leaving and that can save me from starting out the window wondering why I’m here (more so than normal ;0 ).

Also in my case, it appears my work would love me to keep plugging away at a series of tasks until the last minute.  So in short, while I planned to not be the walking dead, it won’t be an issue for me anyway.  Oh well, I rather have  a plan that I don’t need rather than be bored at work.

So have you ever been part of the walking dead?  What did you do about it?

The Emotion Bomb aka Giving Notice

I think perhaps people assume that when you give notice at work that it should be some sort of big deal.  There should be shock, drama and all sorts of interesting things.  In my case, it was mainly boring, except for one thing. Why was it boring?  Because everyone involved in this decision knew it was coming.

It all started way back almost a year ago when I mentioned my plan to leave work would likely occur in the next year during my performance review (please recall I do blog publicly about my plans so work has been aware of them in some form for the last five years or so).  My boss and I were discussing how much notice he would like and we agreed to a figure of at least three months.

Then earlier this year during the work planning cycle I mentioned that I was concerned about taking on a project that I wouldn’t see the end of.  So I provided an updated on my plan and said that I would likely provide official notice after my summer vacation (I figure no one should make that sort of big decision without first being calm and relaxed – you know that feeling you have after not being at work for like two weeks).  And on top of that, I have even been dropping comments into conversations with co-workers that I would likely be leaving work this calendar year.

So like I said everyone involved knew this was coming, hell, I even had an appointment for 8am on the day I got back to work from my summer vacation to officially provide my retirement notice.  The meeting was only ten minutes long.  I handed over my letter of official notice (that I wrote six months earlier) and had printed off over a month ago (it was sitting at the bottom of a file at my desk just waiting for me to sign it).  So the conversation was short and I explained that my last day was Oct 27, 2017, but I was going to be on vacation prior to that so my last day in the office is Sept 15, 2017.  I then entered this information into our online system (which by the way I actually submitted my retirement notice, I didn’t just resign) and with a click of a button my days as an employee were numbered (because it says right on the form you can’t delay or revoke your retirement after you submit it).

Therefore on the process side things went very smooth so far and no drama or surprises.  Yet what I wasn’t fully prepared for was the emotions that ran through me on this day.  I woke up sort of nervous.  You know like when you have a important meeting or presentation to do.  I got to work and I got a little light headed and clamming skin right before the meeting (again nervous…after all I was ending my career here).  Then afterwards things got worse, I didn’t calm down or get better.  In fact, I was a ball of conflicting emotions.  I had feeling of being excited, fear, worry, anxiety and a good dose of thinking “what the hell am I doing?” all at the same time.  It was like my entire body was vibrating on a slightly different frequency than normal. Then the nausea hit in the early afternoon and I went home sick for the rest of the day.  I hoped it was food poisoning but in fact it may have just been emotional overload.

So despite having read a library of material on retirement I still wasn’t prepared for the emotional impact that hit me.  You can think you are ready, but nothing will prepare you for actually ending your career and jumping into your new life.  I wonder what other surprises await me in the days ahead.

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