March 2018 – Net Worth

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 $63,550
LIRA $17,100
TFSA $93,400
Pension $171,940
Wife’s RRSP $90,860
Wife’s TFSA $86,960
Wife’s Taxable $45,690
High Interest Savings Account $37,280

Investment Net Worth $606,760 ($3,700 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.

  • Interest Income: $27
  • Wife’s Monthly Payment to House: $550
  • Child Tax: $310
  • Mystery payment $8
  • Total Income: $892

So I literally have no idea why my old workplace paid me just under $8 and I’ve left a voice mail with their payroll department trying to sort it out.  Oh well, for now I’ve logged it in here.

Spending

Last Month $1648

Again a fairly low spending month but that is normal this time of year for us.

Trailing Last 12 Month Average $3729 (or $44,755 for the last 12 months)

Results

Net Worth ~$1,001,760

Feb Investment Gains & Income/Spending Ratio = (-3700+892)/1648 = -1.7 (Target 1 or higher)

Sept to March Invest Gain & Income/Spending Ratio = (10857+8762)/19175 = 1.02

Just a note on the multiple month ratio I stripped out all income related to my old job from the early months to provide a more realistic picture for retirement.

Commentary:

Well this downward slide in the stock market is starting to take its toll on my ratio target (but this is life with Trump getting into a trade dispute with China).  This is the second month in the row when it was negative and it has dragged down our multiple month average to just over target.  But we are  staying ahead of our spending between our investment gains and income so it isn’t bad yet.

The good news is in April this should get a shot in the arm as I get my tax refund which should be just under $4000 thanks to using up my RRSP contribution room in 2017.  This should in theory drag up the multiple month ratio if we keep our spending down.

Any questions?

(click to make bigger)