Category Archives: Net Worth

Aug 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 $66,190
LIRA $18,050
TFSA $96,510
Pension $174,450
Wife’s RRSP $94,580
Wife’s TFSA $90,790
Wife’s Taxable $45,770
High Interest Savings Account $33,510

Investment Net Worth $619,850 ($2320 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: $550
  • Child Tax: $341
  • Interest $30
  • Tim’s Payment to House:$142
  • Kid Cell Phone Payment: $55
  • Total Income: $1118

I owed the house a few business expenses that I had paid for in cash previously so I wrote a cheque for that.  And our oldest son got his own cell phone this month and he paid us for half of it.

Spending

Last Month $1105

Well I wanted to balance things out and we more than did it last month.  The above total also includes spending $176 to buy a cell phone for my oldest son and setup his minutes and data for it.  Going forward we agreed to pay his base plan for texting but he is responsible to pay for any additional minutes or data costs after his initial top up is used. The monthly spending also includes spending $100 on a new deep fryer after my old one broke.

Results

Net Worth ~$1,014,850

This Month Investment Gains & Income/Spending Ratio = (2320+1118)/1105 = 3.11 (Target 1.02 or higher)

Sept to July Invest Gain & Income/Spending Ratio = (19989+18652)/35814 =1.08 (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 expected our situation to improve through August but honestly I wasn’t expected that much of an improvement. So overall we exceed our ratio goal of 1.02 with a 1.08 or putting it another way we have investment gains and income of 108% of our spending during the last year.   So our net worth went up even without me working in the last year.

What is particularly interesting about the result is our investments only gained 3.24% which is a noticeably lower than my longer term average I modeled my retirement at which is 4.5%.  And our spending was a bit higher than I initially had put in the model.  I had expected to spend around $32K plus vacation or roughly $33K when we in fact spent $35.8K (I touched on why that occurred during July’s net worth post).  So we earned less and spent more and still made our overall target.  I’ll discuss the numbers in more detail on a post next month as I have a series planned to discuss my one year of early retirement that I hit next month.

Any questions?

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July 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 $65,820
LIRA $17,960
TFSA $96,460
Pension $173,700
Wife’s RRSP $94,110
Wife’s TFSA $88,860
Wife’s Taxable $46,140
High Interest Savings Account $34,480

Investment Net Worth $617,530 ($4630 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: $712
  • Child Tax: $341
  • Interest $30
  • Total Income: $1083

Our Child Tax Benefit went up slightly starting in July and my wife owed a bit more to cover her liability insurance which is included in our house insurance policy which we paid last month.

Spending

Last Month $3824

Ugh, that was WAY more expensive of a month than what I wanted. But in all honesty it included several one off expenses like my tent broke and we had to buy a new one ($325), our car finally got fixed from a hit and run so we paid our deductible ($700),  we took vacation (~$550) and my wife and I did a special overnight trip to Saskatoon to celebrate both of us turning  40 in the last year ($250).

Then to top it off I broke down and took part of a Kickstarter for Reaper Bones 4 miniatures for our D&D game for $244.  Which seems like a lot but I am getting 172 minis in 2019 so the average cost works out to $1.42 per mini which is cheap compared to the $8 for two you pay at a local store.  In essence I just did all my game shopping for the next two years all at once.  The trade off of this decision is I’m parking my all grain beer brewing equipment purchases for several months to balance things out.

Results

Net Worth ~$1,012,530

This Month Investment Gains & Income/Spending Ratio = (4630+1083)/3824 = 1.49 (Target 1 or higher)

Sept to July Invest Gain & Income/Spending Ratio = (17669+17472)/34709 =1.01

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:

Okay I’m officially I’m fine. Our multiple month ratio shows our income  just over our spending for the last 11 months.  The concerning part to me of those numbers is our spending is pushing $35,000 and I still have one more month left which is bit higher than my planned spending (which was ~$32K).  Partly I know the reason for that is the $32K target didn’t include vacation spending and we had some odd one off things in the last year (eg: new tent and new glasses for my wife).  So the plan for August is very simple.  Keep our spending down for the month to try and bring the numbers back in line.

I should also mention when I modeled our retirement for the next five years I knew the first year contained the most risk.  At best I was to keep the net worth about the same over the year and depending how bad the markets did I could have seen a small loss.  But in 2019 things will turn around as our Child Tax Benefit will spike in July 2019 and I should see more income from my projects.

Any questions?

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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?

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