Category Archives: Net Worth

Feb 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 $58,720
LIRA $17,770
TFSA $95,330
Pension $176,160
Wife’s RRSP $93,950
Wife’s TFSA $86,050
Wife’s Taxable $43,410
High Interest Savings Account $36,490

Investment Net Worth $607,880 ($13,250 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: $340
  • Interest $38
  • Tim Odd Job: $125
  • Total Income: $1053

Spending

Last Month $1608

A very quiet month for spending.  Basically we just paid the bills, bought gas and groceries and the usual day to day stuff.

Results

Net Worth ~$1,002,880

This Month Investment Gains & Income/Spending Ratio = (13250+1053)/1608 = 8.9 (Target 1.02 or higher)

March 2018 to Feb 2019 Invest Gain & Income/Spending Ratio = (-6518+18473)/35324 =0.33 (Target 1.02 or higher)

Commentary:

Well this month had a few oddities.  First up a friend needed help with a quick job one afternoon so I helped and got paid $125 for 4 or 5 hours of work.  Not too bad for a last minute thing.

The second more fun oddity was the markets kept bouncing back from the low in December 2018.   We have gain over $30k in the last two months which turned around our numbers nicely.  Our ratio of investments and income to spending is now back to positive at 0.33 for the last 12 months which while behind target our target of 1.02 is not bad.  More importantly, when I tracked our investment gains since I retired we are now back to being $8k higher than I started after being negative for the last few months.

Then finally this month I’ve made significant progress on the new book.  I wrote about 10,000 words this month which equals around 40 pages of text.  I’ve finally got a good routine with my writing and I’m hoping to finish the first draft roughly by the end of next month.  The bad news while a first draft is good I still have to hire an editor, get the layout done, get  cover designed, get the ISBNs registered, and everything else to get the book published.  So you likely won’t see the book until this fall at the earliest.  Once things are progressing on that front I’ll let you all know the planned publication date and where you can get a copy of the book.

Any questions?

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Jan 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 $57,200
LIRA $17,290
TFSA $93,530
Pension $173,730
Wife’s RRSP $91,740
Wife’s TFSA $83,080
Wife’s Taxable $40,650
High Interest Savings Account $37,440

Investment Net Worth $594,650 ($20,480 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: $750
  • Child Tax: $340
  • Interest $28
  • Tim Insurance Rebate: $81
  • Total Income: $1199

Spending

Last Month $2008

My wife got a speeding ticket for $184. ;(  But otherwise this was a quiet month.

Results

Net Worth ~$989,650

This Month Investment Gains & Income/Spending Ratio = (20480+1199)/2008 = 10.7 (Target 1.02 or higher)

Feb 2018 to Jan 2019 Invest Gain & Income/Spending Ratio = (-28618+18310)/35286 =-0.29 (Target 1.02 or higher)

Commentary:

Well that was a nice rebound of a month for investments.  It nearly made up for the lose for Dec 2018, but not enough to turn my ratio back to positive but at least the numbers are a bit better.  Out of curiosity, I added up our total losses/gains since I left work and the overall total is only down just over $5000.  Which is fairly good for me not having a job since November 2017.

I’m just a bit tired of these big swings up and down in the stock markets.  I wouldn’t mind a few steady months of minor gains but I get the feeling as long as Trump is in office that won’t happen.  He opens his mouth and the markets flinch.  Sigh, oh well.

The good news is I’m coming up toward our traditionally quiet spending months of Feb and March so hopefully we can make some gains in our net worth regardless of external factors.

Any questions?

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Dec 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 $54,860
LIRA $16,430
TFSA $88,990
Pension $170,100
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)

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: $2219
  • Child Tax: $340
  • Interest $29
  • Tim Brewery Income: $96
  • Total Income: $2684

Spending

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.

Results

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)

Commentary:

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).

Any questions?

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