July 2013 – Investment Update

The following is an update of Tim’s plan to retire early.  Please note the house is paid off, so net worth is no longer tracked.

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 think my ideal tracking of this would be one full year of investment and spending data, but I don’t have that yet.  So for now I’ll do a trailing six 12 month average on spending and investments for the calendar year to date.


Account (Contribution), [+/- Gain or Loss less contributions]

RRSP $34,080 ($200), [$1000]
LIRA $12,660 ($0), [$400]
TFSA $26,600 ($0), [$270]
Pension $75,360 ($1050), [$1130]
Wife’s RRSP $39,200($0), [$760]
Wife’s Investment Account $85 (-$0), [-$25]
Wife’s TFSA $27,860 ($0), [+$980]
My Investment Account $70 ($0), [-$30]
High Interest Savings Account $100 (-$1100),[$0]

Investment Net Worth $216,015 ($147 ), [$4,477 or 2.1%]

(YTD Contribution: $20,550), [YTD Gain: $12,763 or 7.0%], YTD Avg Monthly Gain $1823

Spending Averages

Last Month $2119 (doesn’t include vacation spending)

Trailing Last 12 Months (less mortgage payments) $3148


Number of months spending covered by investment gains: 0.57 {Target 1.0 or higher}


The up and down of the stock market is sort of amusing, last month was awful and this month is great.  It reminders of the weather in Saskatchewan..if you don’t like the weather wait 20 minutes, it will change.  The nice result of this is now I’m just about on target for gains for the year.  My gains target is 5% (after inflation), my current gain is about 7% for the year which allows for a 2% inflation adjustment.  The contribution side is another story, I’m behind on that because we decided to pay off our trip in full from the house money right now (my target for the year is $48,000).  The rest of the vacation costs will be paid back by the businesses over the rest of the year.

Incidentally that brings me to my next point, so why did I drop the vacation spending from this tracking? In summary the plan isn’t about paying for trips, I’ll have to work for those.   Hence, I don’t really need to track that in our spending data.  This has always been the case.  I’m aiming to have my day to day expenses covered, not my vacation spending.

Any questions?

(click for a bigger version)

Investments Jul 2013

5 thoughts on “July 2013 – Investment Update”

  1. I’ve started this calculation also but am tracking it 2 ways. 1 is the calculation you are running but I started a second one to track my non retirement accounts and their income. I have 30 years until I can collect my pension and some 20 before I can collect from my 401k/Social security (haha). So I have another calulation to track how much money I have saved to cover the gap period spending.

    Should you have this calculation too? I do plan to work in early retirement but a much lower paying enjoyable job. However, I would prefer to not require that job so I can go on an RV trip across the US if I want, etc.

  2. @Melissa,

    Oh, good point. I actually check that I can cover the gap period annually when I redo my calculations to confirm the numbers. I don’t work that into these monthly updates. Yet it is VERY important to remember you need enough accessible accounts to cover the gap period.


  3. When I was preparing my ER plan back in 2007-2008, the bulk of my plan included getting me from age 45 (when I ERed in 2008) to age 60 because those would be the challenge years I could use only my taxable accounts. I knew after that things would get a lot easier when I could begin tapping into my reinforcements such as unfettered access to my IRA, Social Security, and my frozen company pension.

  4. So you have about $216,000 net worth. What is your ball park target that will trigger dropping out of the workplace? Anywhere near $600,000?

  5. @Canuckguy,

    $216,000 is just investment net worth, if you included the house…add $400k. Target is around $600k for investments only.


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