June 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 $65,160
LIRA $17,660
TFSA $94,100
Pension $173,810
Wife’s RRSP $93,190
Wife’s TFSA $87,420
Wife’s Taxable $45,110
High Interest Savings Account $36,450

Investment Net Worth $612,900 ($3090 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.

  • Wife’s Monthly Payment to House: $550
  • Child Tax: $310
  • PST rebate on life insurance $9
  • Total Income: $899

I can’t  believe I got a cheque for just under $9 to rebate the PST on my life insurance I just paid in April.  Sigh.

Spending

Last Month $6856

Welcome to the most expensive month of the year for my family.  Why? Our property taxes are due in June for $3756 and our house insurance was also due for another $1523.  Other than those the rest of the month was fairly low key.

Results

Net Worth ~$1,007,900

This Month Investment Gains & Income/Spending Ratio = (-3090+899)/6856 = -0.3 (Target 1 or higher)

Sept to June Invest Gain & Income/Spending Ratio = (13039+16389)/30855 =0.95

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:

So with our really spending month we drove our multiple month ratio under target, which means we have now spent more than we took in in the last 10 months.  I’m not that worried as this is mainly the result of that really high spike in spending this month.  Likely it will end up closer to one after the next two months.

Any questions?

(click to make bigger)

6 thoughts on “June 2018 – Net Worth”

  1. Pretty amazing investment gain! I’m just starting to learn more about investments and have been dumb enough to put most of my money in GIC for many years. My TFSA is only around $60k (already maxed out), while yours is already over $90k. You should think about writing more blogs on investments and teaching beginners like me lol. Can I ask on average what is your annual return? I would assume at least 6%.

  2. Misuchiru,

    I don’t think you should feel “dumb” to put most of your money in GIC. It is all about comfort level towards risk when investing. I consider you to be smart for investing in anything that pays you something back. Most of my portfolio has been built around GIC, with the exception of work pensions and a small amount of “Fun Money” in the stock market. The number one way to get there starts with “Over Saving”, you can’t invest if you don’t save it first. Good Luck to you.

    Tim, looks like overall is going as per the plan. Nice job.

    Cheers

  3. Hi Bill, thanks for the words and I absolutely didn’t mean to offend anyone who puts their money in GIC. The good thing about GIC is that the risk is zero so there’s nothing to lose sleep over. I totally agree with you on the risk level when investing. While I admire those who get a > 5% annual return, the risk is certainly there and I’m not the type who can take a lot of risk. I remember in the first 3-4 months of 2018, I was losing $20k at one point and that really got me panicking. On the other hand, my GIC is only giving me a 1.9% return, and I can’t feel but getting ripped off by the bank for taking my money and lending to others for a much higher interest lol.

  4. Misuchiru,

    No offense taken by me. My post was meant to compliment and confirm that you are not alone in the low risk preference club. May I suggest that if you are going to stay with the GIC route, go out and look around, you can find some >3% GIC’s (5yr) through some smaller banks and credit unions. Also, most banks offer a Market growth GIC, no risk to principal, but can pay a little higher depending on how a certain market sector performs over that time frame. You may already be aware of these options, just mentioning it as you stated a lower 1.9% return

    Cheers and Good Luck!

  5. Hi Tim, I hope you’re doing great today 🙂

    Your house insurance is 50% larger then mine, my house is insured for $300k. There may be some fun ways to get that down. The most obscure I will recommend is an automatic main water valve shutoff; its a cool toy that should appeal to your engineering interests. I spent way too much time researching it, I hope you get the same pleasure (I truly mean it, practical tech is fun to figure out)

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