June 2018 – Net Worth

Welcome to my net worth posts where I try to prove to myself and you that I wasn’t crazy for leaving work in the fall of 2017 to start my early retirement.   A few important notes:  we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average (please note this metric is still under development).

Investments

Accounts

RRSP $65,160
LIRA $17,660
TFSA $94,100
Pension $173,810
Wife’s RRSP $93,190
Wife’s TFSA $87,420
Wife’s Taxable $45,110
High Interest Savings Account $36,450

Investment Net Worth $612,900 ($3090 decrease over last month from investments)

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.

  • Wife’s Monthly Payment to House: $550
  • Child Tax: $310
  • PST rebate on life insurance $9
  • Total Income: $899

I can’t  believe I got a cheque for just under $9 to rebate the PST on my life insurance I just paid in April.  Sigh.

Spending

Last Month $6856

Welcome to the most expensive month of the year for my family.  Why? Our property taxes are due in June for $3756 and our house insurance was also due for another $1523.  Other than those the rest of the month was fairly low key.

Results

Net Worth ~$1,007,900

This Month Investment Gains & Income/Spending Ratio = (-3090+899)/6856 = -0.3 (Target 1 or higher)

Sept to June Invest Gain & Income/Spending Ratio = (13039+16389)/30855 =0.95

Just a note on the multiple month ratio I stripped out all income related to my old job from the early months to provide a more realistic picture for retirement.

Commentary:

So with our really spending month we drove our multiple month ratio under target, which means we have now spent more than we took in in the last 10 months.  I’m not that worried as this is mainly the result of that really high spike in spending this month.  Likely it will end up closer to one after the next two months.

Any questions?

(click to make bigger)

May 2018 – Net Worth

Welcome to my net worth posts where I try to prove to myself and you that I wasn’t crazy for leaving work in the fall of 2017 to start my early retirement.   A few important notes:  we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average (please note this metric is still under development).

Investments

Accounts

RRSP $64,070
LIRA $17,560
TFSA $92,840
Pension $173,030
Wife’s RRSP $92,540
Wife’s TFSA $86,550
Wife’s Taxable $46,070
High Interest Savings Account $42,690

Investment Net Worth $615,990 ($5920 increase over last month from investments)

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.

  • Wife’s Monthly Payment to House: $605
  • Child Tax: $310
  • Credit for life insurance over payment $155.
  • Total Income: $1651

My life insurance company dragged their feet refunding me an over payment so this should have happened back in April but it didn’t.

Spending

Last Month $2531

That included a few birthdays in the family including a party for my younger son which ran us around $250 or so.

Results

Net Worth ~$1,010,990

This Month Investment Gains & Income/Spending Ratio = (5920+1651)/2531 = 3.0 (Target 1 or higher)

Sept to May Invest Gain & Income/Spending Ratio = (16129+15490)/24029 = 1.32

Just a note on the multiple month ratio I stripped out all income related to my old job from the early months to provide a more realistic picture for retirement.

Commentary:

Yes, that is what a good investment return month feels like…I had almost missed that feeling.  So between the tax refund last month and the investment returns this month our ratio is firmly above our target of one.

Any questions?

(click to make bigger)

April 2018 – Net Worth

Welcome to my net worth posts where I try to prove to myself and you that I wasn’t crazy for leaving work in the fall of 2017 to start my early retirement.   A few important notes:  we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average (please note this metric is still under development).

Investments

Accounts

RRSP $63,800
LIRA $17,300
TFSA $93,310
Pension $171,580
Wife’s RRSP $91,230
Wife’s TFSA $86,840
Wife’s Taxable $45,740
High Interest Savings Account $40,270

Investment Net Worth $610,070 ($3950 Contribution, $650 decrease over last month from investments)

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.

  • Wife’s Monthly Payment to House: $550
  • Child Tax: $310
  • Tax Refund $3950 (note I included this in the contributions above to avoid double counting this below).
  • Total Income: $5077

Well thanks to our tax refund our net worth has made a nice increase this month because without it things would have been going down.

Spending

Last Month $2313

Again a average spending month but that is normal this time of year for us.

Results

Net Worth ~$1,005,070

This Month Investment Gains & Income/Spending Ratio = (-605+5077)/2323 = 1.9 (Target 1 or higher)

Sept to Apr Invest Gain & Income/Spending Ratio = (10209+13839)/21498 = 1.12

Just a note on the multiple month ratio I stripped out all income related to my old job from the early months to provide a more realistic picture for retirement.

Commentary:

Ah, the lovely tax refund which helped most of the ratios do really well this month.  Of course going forward I won’t be able to depend on that but that is fine during this up and down first year retirement.

Any questions?

(click to make bigger)

A blog about early retirement and happiness