That Other Income Earner

I have another income earner in my house: my money.  It never complains, it works 24 hours a day, 365 days a year and does a fairly good job of making some extra money for the house.  Unfortunately I’ve never figured out exactly how much it makes.

I know that between my taxable and RRSP accounts there is a fair amount of money coming in from distributions, dividends and interest.  Yet I’ve never bothered finding out how much I actually took in from all of the investment/RRSP accounts in a year.  So I sat down with my 2008 tax information and dug into my RRSP statements to find out.

I immediately came to the conclusion that my bank has no desire for me to know how much income my RRSP funds are giving us.  They bury the details in each statement so you have to look up each line for each fund in each statement and then add them together.  A massive pain in the butt, no wonder I’ve never did this before.  All in all the RSP accounts spun off just under $1300, which given their combined balance at the end of 2008 was $30,600 means a mere 4.2% yield.

The taxable accounts are entirely a different story.  Those are the higher risk accounts and it shows.  Those made about $2400 in income on a combined balance of $14,200 at the end of 2008.  So yield there was 16.9%.

Therefore combined we took in an extra $3700 on a total of $44,800 or an 8.3% yield. Damn my extra income earner is working harder than I do! 🙂 Overall that is fairly good since that represents about 1.2 months of our current spending.  Of course an issue with these numbers is they are all pre-tax, so once the government gets its share I’m would be lucky to have about a month of spending left.

So do you track what your other income earner brings in each year?  If so do you keep an up to date record or just estimate it once in a while?

8 thoughts on “That Other Income Earner”

  1. Not really. I look at my income tax of course to see how much dividends, capital gains and interest I’ve earned but I’ve never calculated yield or anything like that.

  2. you did pretty good
    how do you know what to keep with the the invesments when there is so much uncertanty out there.
    I’m young and follow the markett and it very confusing with unemployment going up and consumers holding on to there money longer.


  3. Chad,

    I don’t know how things are going to turn out. I’m hoping I do well on my investments, but I’m just guessing like everyone else.

    Also it helps I changed jobs late last year to a government owned utility company which is fairly resistant to the down turn. I’m fairly positive I’ll have a job for a long as I want it.


  4. A 17% yield is pretty good – are the taxable accounts just dividend stocks?

    The best I got last year was what looked like an annual dividend on an index fund after holding it for 2 months.

    I don’t track yields but I do have a spreadsheet that breaks down monthly and annual income and expenses so I can see bigger trends than in my regular budget. Since most of my investment income is from interest and bonds right now it hasn’t grown as fast as my savings unfortunately.

  5. Although subtle, we need to remind ourselves of our other income earner! Solid article and now is a great time to assess how our other income earner has been doing!

    Thanks for sharing.

  6. hey cdn dream if you work for the same govt utility as my wifes uncle in sask.he says all there pension is tied to the marketts not like before when they wern’t. I guess your hoping both ways in essence with the markett with your pension and with your own invesments?

  7. Chad,

    Yes my pension is define contribution, so I’m tied to the markets. Yet keep in mind I only started late last year at the new job, so I started buying in towards the bottom of the market.

    My initial comment was more about job security. I’m not worry about getting laid off any time soon.


  8. Wow, you’re lucky that your investments have given you money. My investments are down 25%.

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