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.
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 )
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.
(click to make bigger)