April 2019 – 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 $112,750
LIRA $18,420
TFSA $96,040
Pension $129,480
Wife’s RRSP $97,830
Wife’s TFSA $87,760
Wife’s Taxable $44,670
High Interest Savings Account $33,580

Investment Net Worth $620,530 ($9640 increase 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: $869
  • Child Tax: $340
  • Interest $32
  • Tim Brewery Job: $67
  • Total Income: $1308

Spending

Last Month $2432

Well I was hoping for a lower spending month but that didn’t happen.  Why? Well our bill came due to attend the outdoor NHL game this fall in Regina $512 for four tickets (which was a bucket list item so we don’t mind the cost at all). And my wife owed money for income tax $320 (actually her CPP contribution).

Results

Net Worth ~$1,015,530

This Month Investment Gains & Income/Spending Ratio = (9690+1308)/2432 = 4.52 (Target 1.02 or higher)

May 2018 to April 2019 Invest Gain & Income/Spending Ratio = (10480+15386)/36761 =0.70 (Target 1.02 or higher)

Commentary:

Well as I previously noted I got the new library job but I haven’t been paid yet, but I did work a shift at the brewery so that gave us a bit extra cash in April which again went towards me buying my own brewery equipment.  As an aside I realized why I partly love the new library job…my earliest shift doesn’t start until 9am which means I should never had to set an alarm to get up for it (I usually get up between 7am and 8am and very rarely sleep until 8:30am).

The other big change to this month was that just over $50,000 was shifted out of my pension into my RRSP.  I previously discussed why this was happening here but in short it was I decided to move my unlocked portion of my pension that  over to my RRSP to give us additional flexibility on accessing the money.  And of course the markets had a nice upsurge which helped push up our net worth to a new all time high.  And our year ratio has improved to 0.70 which while not meeting target is moving in the right direction.

The new book continues to move along but slower than I wanted.  The overall manuscript is now over 54,000 words (~216 pages) and the  first draft is done.  The editing has been moving very slowly this month as the interview and starting my new job sucked up some of time and more of my attention for the month.  But now that I’m setting into a new routine I should start making more progress in May.

Any questions?

(click to make bigger)

6 thoughts on “April 2019 – Net Worth”

  1. Thanks for the update Tim. I retired at 55 yrs old 2 days ago and following you these last couple of years has been a huge inspiration. Keep up the good work!!! I mean keep on working less lol.

  2. Great update things are going great for you! Inspiring. Do you anticipate your library job to cover most of your regular expenses, like grocery etc? And you close the gap using your HISA? Thanks and looking forward to read your book

  3. @Pipo – No, the library gig money is going into our slush fund to pay for vacations and house renovations. We will keep using the High Saving Account for the regular spending and then fill it up again towards the end of the year.

  4. Thanks for sharing this. I’m age 49 and ready for my first retirement. My wife’s and my finances are very similar to yours, Perhaps you answered this in one of your other posts, but did you pick a specific retirement date far in advance of the fall of 2017. Personally I have decided on a specific date in early spring 2020, however I could retire now at least mentally. Like you I don’t mind doing something for money, however it will have to fit well with what I do for fun. I will take the time and read through your other posts. I am sure to have comments and questions there as well.

  5. @Brad – Sorry for the delay on answering your question. Yes I picked a day about a year in advance. I had a rough year target out further (age 45) but then did the numbers again with a few changes and made the decision to pull the plug at 39.5 years instead. I wanted the freedom more than the money. I don’t regret the choice now over 18 months later. Life is better without a full time job.

  6. Love your site, I went part time 6 months ago at 53 years of age, I practiced a slow FIRE , it is so satisfying having FUFI money, (fu$$ you financially independent). The sun shines brighter and you appreciate everything in your life more so. It is interesting to see your approach and I wish you success with your new found time …..,

Leave a Reply

Your email address will not be published. Required fields are marked *