Oct 2017 – Net Worth

This posts are in a transition phase, so please be patient as I work out the changes over the next few months.  In that end, the focus of these posts will now shift from increasing our net worth to balancing our income & investment gains versus our spending.

The following is an update of Tim’s early retirement.  Please note we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average but I’m just starting to track this as of last month.



RRSP $63,010
LIRA $17,200
TFSA $90,100
Pension $170,390
Wife’s RRSP $90,180
Wife’s TFSA $82,030
Wife’s Taxable $53,680
High Interest Savings Account $48,500

Investment Net Worth $615,090 ($20,060 increase over last month from $3951 contributions, and investment gains $16,109 )

Home Equity

Estimate $395,000


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.

  • Tim’s Vacation Income: $5840
  • Wife’s Monthly Payment to House: $730
  • Child Tax: $310
  • Reimbursement of Glasses and Eye Exam (Tim Work): $440
  • Total Income: $7320


Last Month $3806

As I previously mentioned our dog had two rounds of surgery last month so that was $920.  And we had our eye exams and my wife bought new glasses and sunglasses so that’s another $1150. And I also took a trip to Calgary to visit a friend one weekend.

As I mentioned last in previous updates I’m breaking out the renovations separate from the rest of our spending this year.

Trailing Last 12 Month Renovations $10,285

Trailing Last 12 Month Average Everything Else $3051 (or $36,622 for the last 12 months)


Net Worth ~$1,010,090

Investment Gains & Income/Spending Ratio = (16,109+7320)/3806 =6.2 (Target 1 or higher)


And with that I’m done work and the amazing cash flow of income that goes with it.  Ugh, the scary part of early retirement now begins, but that is why we have such a big cash reserve in our high interest savings account.  It has our 2018 TFSA contributions already saved, our $20K slush fund and the cash to help support us over the next year of so.

On the plus side the markets made a nice surge to the end of the month which has helped put my mind at ease as we cracked that magically $1 million net worth mark without the kid’s RESP account being included.  I have hoped to cross that threshold before leaving work and just managed it which was a nice surprise after a rather flat summer of market returns.

Any questions?

(click to make bigger)

8 thoughts on “Oct 2017 – Net Worth”

  1. Dear Tim,

    Looks like all your hardwork and organization has paid off, Congratulations!

    One question, what bank are you using for your high interest savings? I opened up an account with EQ Bank last week but need to find another 1 or 2 banks.

    Besos Sarah.

  2. Hi Tim,

    Congrats on retirement!

    I would be interested in learning what investments you hold in your TFSA. With a value of $90K and a contribution limit of $52K you have done quite well and plans for changes now that you are retired?

  3. It is great that you broke the $1 Million mark right at retirement. It is an impressive accomplishment. I like the idea of the large cash reserve, and I will likely follow it when we are getting closer to FIRE, just to have a nice cushion for any of life’s little surprises. that might come along . Hope the dog is doing well.

  4. Well, technically, a person is actually a millionaire if they have 1 MM plus of investable liquidity. Your house generates zero income, and is in fact a lifestyle liability. The only way to convert your primary residence to an asset is either to rent it out for cash flow, or to liquidate it to capture a capital gain. Right now you’re living in it, and it is depreciating by the day. Your land value continues to appreciate, but house itself wears out, needs maintenance, needs updating, and is considered a depreciating item. Of course, a bank will tell you a house is an asset, but only because they can seize it and resell it to cover an outstanding debt.

    Don’t get me wrong the 615K is no small feat, and based on a balanced, low cost portfolio, will realistically generate 3% over inflation for the next 30 years of your life – (roughly $30,750 pre-tax per year based on a 2 % average inflation rate going forward)
    If that’s your target lifestyle, then good on ya’, and well done!

  5. Hi Tim , You and your wife have done very well! We are 57 and 61 and have over a million invested and have 2 homes . What I’m finding incredibly stressful is to fully retire and trust that we’ll always have sufficient funds . To that end I work half time . When you retired did you feel at any time like you were stepping off a cliff , as I do? Enjoying your story, thanks .

  6. Hi everyone,

    Sorry on the delay on responding to comments lately. I’ve been a bit swamped with writing my new novel in November.

    @Sarah – We just use Royal Bank so I can easily move money over to our chequeing account as needed. Not a great rate so I am thinking of shifting some of the longer term cash to another bank. But I haven’t do any research yet.

    @Ms99to1 – Actually not that much other income would make me sleep at night. Honestly $3 to $5K a year would do nicely but I’m also not in a rush to get there.

    @Matt – Actually the big shift for the TFSA accounts will be be the fact we start draining cash off them going forward so the growth should slow down now. So all dividend payments will be taken off once or twice a year going forward.

    @James – The dog is now back to her old self and doing fine. A bit thin from the surgeries but nothing a bit of extra treats won’t solve. 😉

    @John – Actually the millionaire definition shifts depending on who you are talking to. Hence the banks just sidestep the term entirely and use ‘High Net Worth’ to cover off those people with $1M+ portfolios. Regardless it doesn’t matter for me we are comfortable on what we are pulling in with the amount of money we have invested.

    @Arlene – Oh yes, I felt like I was stepping off the cliff entirely. You will always have that feeling when you leave work and shift to investment income. Totally normal feeling, the trick is to let yourself adjust to it. If you have a good idea of your spending and feel confident in your numbers then you are ready. Good luck!

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