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 $88,290
Wife’s TFSA $78,180
Wife’s Taxable $37,330
High Interest Savings Account $38,330
Investment Net Worth $574,170 (-$22,050 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: $2219
- Child Tax: $340
- Interest $29
- Tim Brewery Income: $96
- Total Income: $2684
Last Month $5123
Of course this includes the rest of the Christmas shopping, another $660 in dental work and $1569 for my wife’s Rider season tickets. Even for us that was a lot of spending.
Net Worth ~$969,170
This Month Investment Gains & Income/Spending Ratio = (-22050+2684)/5123 = -3.78 (Target 1.02 or higher)
Jan 2018 to Dec 2018 Invest Gain & Income/Spending Ratio = (-47285+18081)/35435 =-0.82 (Target 1.02 or higher)
Ugh, that was ugly. Thank goodness 2018 is over. Our total investment loss for the year is at 8.11% which is high but not high enough to trigger our backup plans and yes I’m starting to wonder if I wasn’t a bit crazy for leaving work in late 2017.
You might have noticed some big shifts in some of the account values but not all of that was from the markets. I took out $7,000 from my RRSP from the bonds portion for living expense in 2019. We also took out the cash that accumulated in both my TFSA and my wife’s TFSA accounts.
Oddly enough, while all of this made me nervous I still managed to enjoy my holidays and focus on spending time with family and friends. Sometimes you just have to ignore the ugly stuff to remember what in life is important (hint it isn’t the money). The reality is I still don’t have to run out and go back to full time right away. We still have a lot of money invested and we aren’t going to go broke anytime soon.
The good news is 2019 should start to turn things around. Why? Well first off the markets as I write this have already improved from that dip at the end of 2018. Also we expect a substantial increase to our Child Tax Benefit starting in July which should improve our non-investment cash flow for the year. I’m also going to make an effort to make some more income this year from writing and side jobs (which I was planning to do even before the markets went to hell but it is just more important to do it now).
(click to make bigger)