Category Archives: Net Worth

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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Nov 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 $64,000
LIRA $17,300
TFSA $94,840
Pension $171,220
Wife’s RRSP $91,390
Wife’s TFSA $85,380
Wife’s Taxable $42,800
High Interest Savings Account $29,290

Investment Net Worth $596,220 ($6100 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 $28
  • Total Income: $918

Spending

Last Month $2942

This included $1024 for dental work (mostly cleanings) and we started our Christmas shopping ($610).  So other than those two item not a bad month.

Results

Net Worth ~$991,220

This Month Investment Gains & Income/Spending Ratio = (6100+918)/2942 = 2.39 (Target 1.02 or higher)

Dec 2017 to Nov 2018 Invest Gain & Income/Spending Ratio = (-27588+16507)/33428 =-0.33 (Target 1.02 or higher)

Commentary:

This month was slightly better after the disaster of Oct 2018 but I am still down overall for the last year with a negative ratio result which sort of sucks since I have to take out some cash right away for next year.

The other factor that kicks into play here is my ratio is based on a 12 month average so I just stripped out the results of Sept, Oct, Nov 2017 which were really good so that made the results look even worse.  If you put those back in the overall decrease in investments since I retired is only $3641.

I’m still not in needed to use a backup plan mode here so while it sucks it isn’t terminal to my retirement plan.

Any questions?

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Oct 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 $63,050
LIRA $17,080
TFSA $92,690
Pension $169,700
Wife’s RRSP $90,010
Wife’s TFSA $85,560
Wife’s Taxable $41,470
High Interest Savings Account $30,560

Investment Net Worth $590,120 ($24,140 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 $27
  • Total Income: $917

Spending

Last Month $1864

We had Thanksgiving with some family in AB (~$150) and also bought our anniversary gift ($166).

Results

Net Worth ~$985,120

This Month Investment Gains & Income/Spending Ratio = (-24140+920)/1864 = -12.45 (Target 1.02 or higher)

Nov 2017 to Oct 2018 Invest Gain & Income/Spending Ratio = (-30608+17909)/35001 =-0.36 (Target 1.02 or higher)

Commentary:

Well that folks is how you blow up a retirement plan in a two month span.  I knew this would be bad but ouch that hurt more than I was expecting.  Our investment decrease was equal to just under a year of spending cash in two months.

The other factor that kicks into play here is my ratio is based on a 12 month average so I just stripped out the results of Sept and Oct 2017 which were really good so that made the results look even worse.

But on the plus side the actual decrease this month was only just over 4% overall this month.  It just seems bigger because of the numbers involved. The other good thing is this is just a paper loss we didn’t actually sell anything.

So now what?  Well in the short term, nothing much changes.  I keep working on the sequel to  the Free at 45 book so I can publish it in 2019.  I keep my ear out for interesting opportunities like a local brewery looking for some causal help which I put my name in for.  And hopefully next month gets better.

Any questions?

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