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 by 102% on a 12 month rolling average (the extra 2% is a buffer for inflation).
Wife’s RRSP $90,010
Wife’s TFSA $85,560
Wife’s Taxable $41,470
High Interest Savings Account $30,560
Investment Net Worth $590,120 ($24,140 decrease over last month from investments)
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: $340
- Interest $27
- Total Income: $917
Last Month $1864
We had Thanksgiving with some family in AB (~$150) and also bought our anniversary gift ($166).
Net Worth ~$985,120
This Month Investment Gains & Income/Spending Ratio = (-24140+920)/1864 = -12.45 (Target 1.02 or higher)
Nov 2017 to Oct 2018 Invest Gain & Income/Spending Ratio = (-30608+17909)/35001 =-0.36 (Target 1.02 or higher)
Well that folks is how you blow up a retirement plan in a two month span. I knew this would be bad but ouch that hurt more than I was expecting. Our investment decrease was equal to just under a year of spending cash in two months.
The other factor that kicks into play here is my ratio is based on a 12 month average so I just stripped out the results of Sept and Oct 2017 which were really good so that made the results look even worse.
But on the plus side the actual decrease this month was only just over 4% overall this month. It just seems bigger because of the numbers involved. The other good thing is this is just a paper loss we didn’t actually sell anything.
So now what? Well in the short term, nothing much changes. I keep working on the sequel to the Free at 45 book so I can publish it in 2019. I keep my ear out for interesting opportunities like a local brewery looking for some causal help which I put my name in for. And hopefully next month gets better.
(click to make bigger)