Category Archives: Net Worth

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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Sept 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 $65,570
LIRA $18,050
TFSA $96,200
Pension $173,350
Wife’s RRSP $93,660
Wife’s TFSA $90,650
Wife’s Taxable $45,250
High Interest Savings Account $31,530

Investment Net Worth $614,260 ($5590 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 $30
  • Total Income: $920

Spending

Last Month $3492

Fairly normal spending but included the yearly car insurance for $1026.

Results

Net Worth ~$1,009,260

This Month Investment Gains & Income/Spending Ratio = (-5590+920)/3492 = -1.33 (Target 1.02 or higher)

Oct 2017 to Sept 2018 Invest Gain & Income/Spending Ratio = (9641+18472)/36943 =0.76 (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 was avoiding writing these posts because I knew the results would not be good. Yet dropping from 1.08 ratio to 0.76 in a month isn’t good.  But this is what a few bad months in a row can do to your investments.  Next up Oct and the blood bath results.

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