June 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.



RRSP $58,650
LIRA $16,520
TFSA $85,350
Pension $164,210
Wife’s RRSP $86,880
Wife’s TFSA $78,200
Wife’s Taxable $51,270
High Interest Savings Account $34,780

Investment Net Worth $575,860 (decrease of $2020 over last month)

Home Equity

Estimate $395,000


Last Month $5920

Last month had our property taxes due which are about $3700 and we also bought a new laptop for the house for another $550.

So I was feeling a bit guilty about our spending numbers until the other day when I looked at the data a bit more closely and realized what I was doing.  I’m front loading a lot of our spending now so that my first year of early retirement can be lower.  For example, we have put some extra money into doing electronic upgrades now.  We helped our oldest son buy his first laptop ($400), we upgraded the family laptop ($550) and then later on I still need to buy new phones for my wife and myself.  So yes we have been spending a lot, but at least I know where it has been going.

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 $2573 (or $30,877 for the last 12 months)


PF Score: 31.4 {Target 31}

Net Worth ~$970,860


It was bound to happen at some point as stock and bond markets can’t go up forever, they do come down at some point. So this month is one of those down months and hence the net worth reduction.  Honestly, while I’m a little bit frustrated being so close to my goal, I’m sort of happy this happened now.  I would rather eat a month or two of losses now rather than it happen right after I leave work.  I know I would be more worried about this drop if I had already left my job.

And by an odd quirk of fate we passed the PF Score target this month, but that is more due to me stripping out the house renovations than actually being fully correct.  Yet the trend is nice to see.

Any questions?

(click to make bigger)

5 thoughts on “June 2017 – Net Worth”

  1. How of the front load spending is caused by worry? Is it a subtle way of providing an extra buffer for the first year? I believe your budget is probably fantastic and has accounted for it all in retirement, why the push to get it spent early?

  2. Hi Tim I recently discovered your site and am trying to read through previous posts. Can I suggest adding a “random article” button? It would make it easier for new/infrequent visitors to catch up on older posts.

  3. @Jay – The spending in advance is mostly a trick to keep my worrying in check. If I have already spent most of our foreseeable big purchases in advance then when something unexpected comes up in the first few years I won’t feel so bad spending my reserves on it. Also it just feels easier to spend it now when I’m still earning good money before our income drops significantly after I leave work. So mostly it is in my head and doesn’t make much of a practical difference.

    @ El Pescado Grande – Mmm, not a bad idea. I’ll look into it. Thanks for the suggestion.

  4. Hi Tim, you’ve probably addressed this earlier, but how do you plan to manage the funds in your wife’s taxable account from an tax strategy perspective in retirement? When is the ideal time to draw that account down to minimize tax? I imagine you’ve run the numbers and would be curious to know your plan as I’m in a similar boat. Thanks!

  5. @Dave – Actually I’m not sure if I did address that early on the blog. I know I have thought about it but not sure if I wrote about it. Long story short, my wife’s taxable account is all dividend paying investments. So tax burden from that is expected to be almost non-existent from the dividends. Longer term she will have to watch out for capital gains. So to reduce that risk she plans to sell off some investments, pay the tax and move the money to her TFSA when she has contribution room. Overall that should take at least 6 years or so to completely drain the taxable account and move it over.

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