Category Archives: Net Worth

Dec 2017 – Net Worth

Yes, I’m behind on these posts…so please be patient as I post a few backlog ones to get me back on track.

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 $63,480
LIRA $17,470
TFSA $87,680
Pension $171,960
Wife’s RRSP $90,860
Wife’s TFSA $82,680
Wife’s Taxable $53,170
High Interest Savings Account $50,190

Investment Net Worth $617,490 ($2,380 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.

  • Christmas present cash received: $300
  • Wife’s Monthly Payment to House: $500
  • Child Tax: $310
  • Total Income: $1110

Spending

Last Month $3116

December includes my wife’s season tickets to the Riders for $1365.  Also keep in mind we had a roof shingles replaced in 2017 which accounts for a lot of annual spending below.

Trailing Last 12 Month Average $3927 (or $47,125 for the last 12 months)

Results

Net Worth ~$1,012,490

Dec Investment Gains & Income/Spending Ratio = (-2380+1110)/3116 =-0.4 (Target 1 or higher)

Commentary:

Well we certainly failed on our metric for this month and even managed to get a negative value.  Partly this just an accounting issue of we took in the income for my wife’s season tickets in Nov and got the expense in Dec.  But I’m not that worried as this is only a shape shot in time.

Since this is the year end post net worth post I did look up some values from the start of the year and compared them.  At the end of 2016, I was at $526,480 for investment net worth so overall that went up by $92,010 in 2017 even when I wasn’t working for the last few months.  So overall a fairly solid year.

Any questions?

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Nov 2017 – Net Worth

This posts are in a transition phase, so please be patient as I work out the changes over the next few months.  In that end, the focus of these posts will now shift from increasing our net worth to balancing our income & investment gains versus our spending.

The following is an update of Tim’s early retirement.  Please note we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average but I’m just starting to track this as of last month.

Investments

Accounts

RRSP $64,000
LIRA $17,380
TFSA $87,390
Pension $172,130
Wife’s RRSP $91,190
Wife’s TFSA $81,630
Wife’s Taxable $53,010
High Interest Savings Account $53,130

Investment Net Worth $619,870 ($4,780 increase over last month from $1700 contributions, and investment gains $3,080 )

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.

  • Tim’s Vacation Income: $1700
  • Wife’s Monthly Payment to House: $2015
  • Child Tax: $310
  • Total Income: $4025

The high transfer from my wife’s business was her annual payment for her football season tickets which are due on Dec 1.

Spending

Last Month $4515

Christmas shopping was in full swing in November which consumed around $1300 and we did our annual visit to the dentist which was another $880.

As I mentioned last in previous updates I’m breaking out the renovations separate from the rest of our spending this year.

Trailing Last 12 Month Renovations $9254

Trailing Last 12 Month Average Everything Else $2891 (or $34,700 for the last 12 months)

Results

Net Worth ~$1,014,870

Investment Gains & Income/Spending Ratio = (3080+4025)/4515 =1.57 (Target 1 or higher)

Commentary:

So by the way, yes I was ignoring this blog mostly this month.   I was working on my novel and wrote 52,000 words or so (which would be around 208 pages or 70 blog posts…aka over a year’s worth of posts in a single month).  I’m still not done the novel but I am scaling back on the writing pace so you should see more blog posts in December.

We did a bit of financial house cleaning and drained the excess cash off the TFSA and taxable accounts and moved that over to our savings account.  I had planned on looking at if we need to rebalance the index funds in the RRSP accounts but didn’t get around to that yet.  So that will be a December project.

I’m pleased to see the investment net worth is still going up even with us now taking money out for our expenses.  As I mentioned in my previous post we got a bit of extra cash from my old job this month and that just got dumped into savings as a contribution for now.  Once we get to the New Year it will likely get dumped into a TFSA account.

Any questions?

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Oct 2017 – Net Worth

This posts are in a transition phase, so please be patient as I work out the changes over the next few months.  In that end, the focus of these posts will now shift from increasing our net worth to balancing our income & investment gains versus our spending.

The following is an update of Tim’s early retirement.  Please note we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average but I’m just starting to track this as of last month.

Investments

Accounts

RRSP $63,010
LIRA $17,200
TFSA $90,100
Pension $170,390
Wife’s RRSP $90,180
Wife’s TFSA $82,030
Wife’s Taxable $53,680
High Interest Savings Account $48,500

Investment Net Worth $615,090 ($20,060 increase over last month from $3951 contributions, and investment gains $16,109 )

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.

  • Tim’s Vacation Income: $5840
  • Wife’s Monthly Payment to House: $730
  • Child Tax: $310
  • Reimbursement of Glasses and Eye Exam (Tim Work): $440
  • Total Income: $7320

Spending

Last Month $3806

As I previously mentioned our dog had two rounds of surgery last month so that was $920.  And we had our eye exams and my wife bought new glasses and sunglasses so that’s another $1150. And I also took a trip to Calgary to visit a friend one weekend.

As I mentioned last in previous updates I’m breaking out the renovations separate from the rest of our spending this year.

Trailing Last 12 Month Renovations $10,285

Trailing Last 12 Month Average Everything Else $3051 (or $36,622 for the last 12 months)

Results

Net Worth ~$1,010,090

Investment Gains & Income/Spending Ratio = (16,109+7320)/3806 =6.2 (Target 1 or higher)

Commentary:

And with that I’m done work and the amazing cash flow of income that goes with it.  Ugh, the scary part of early retirement now begins, but that is why we have such a big cash reserve in our high interest savings account.  It has our 2018 TFSA contributions already saved, our $20K slush fund and the cash to help support us over the next year of so.

On the plus side the markets made a nice surge to the end of the month which has helped put my mind at ease as we cracked that magically $1 million net worth mark without the kid’s RESP account being included.  I have hoped to cross that threshold before leaving work and just managed it which was a nice surprise after a rather flat summer of market returns.

Any questions?

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