Dec 2017 – Net Worth

Yes, I’m behind on these posts…so please be patient as I post a few backlog ones to get me back on track.

Welcome to my net worth posts where I try to prove to myself and you that I wasn’t crazy for leaving work in the fall of 2017 to start my early retirement.   A few important notes:  we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average (please note this metric is still under development).

Investments

Accounts

RRSP $63,480
LIRA $17,470
TFSA $87,680
Pension $171,960
Wife’s RRSP $90,860
Wife’s TFSA $82,680
Wife’s Taxable $53,170
High Interest Savings Account $50,190

Investment Net Worth $617,490 ($2,380 decrease over last month from investments)

Home Equity

Estimate $395,000

Income

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.

  • Christmas present cash received: $300
  • Wife’s Monthly Payment to House: $500
  • Child Tax: $310
  • Total Income: $1110

Spending

Last Month $3116

December includes my wife’s season tickets to the Riders for $1365.  Also keep in mind we had a roof shingles replaced in 2017 which accounts for a lot of annual spending below.

Trailing Last 12 Month Average $3927 (or $47,125 for the last 12 months)

Results

Net Worth ~$1,012,490

Dec Investment Gains & Income/Spending Ratio = (-2380+1110)/3116 =-0.4 (Target 1 or higher)

Commentary:

Well we certainly failed on our metric for this month and even managed to get a negative value.  Partly this just an accounting issue of we took in the income for my wife’s season tickets in Nov and got the expense in Dec.  But I’m not that worried as this is only a shape shot in time.

Since this is the year end post net worth post I did look up some values from the start of the year and compared them.  At the end of 2016, I was at $526,480 for investment net worth so overall that went up by $92,010 in 2017 even when I wasn’t working for the last few months.  So overall a fairly solid year.

Any questions?

(click to make bigger)