Sept 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 by 102% on a 12 month rolling average (the extra 2% is a buffer for inflation).

Investments

Accounts

RRSP $65,570
LIRA $18,050
TFSA $96,200
Pension $173,350
Wife’s RRSP $93,660
Wife’s TFSA $90,650
Wife’s Taxable $45,250
High Interest Savings Account $31,530

Investment Net Worth $614,260 ($5590 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: $340
  • Interest $30
  • Total Income: $920

Spending

Last Month $3492

Fairly normal spending but included the yearly car insurance for $1026.

Results

Net Worth ~$1,009,260

This Month Investment Gains & Income/Spending Ratio = (-5590+920)/3492 = -1.33 (Target 1.02 or higher)

Oct 2017 to Sept 2018 Invest Gain & Income/Spending Ratio = (9641+18472)/36943 =0.76 (Target 1.02 or higher)

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 I was avoiding writing these posts because I knew the results would not be good. Yet dropping from 1.08 ratio to 0.76 in a month isn’t good.  But this is what a few bad months in a row can do to your investments.  Next up Oct and the blood bath results.

(click to make bigger)