Well, better late than never in updating my net worth from March 2015:
Not much to discuss on the change front – a happy 4.22% increase over March; however, it was mostly due to two accounting errors and less so to an increase in net worth.
Note 1 – We had $2,000 in interest income on investments of $250,000 for the month.
Note 2 – RRSP’s increase as we had forgotten $37,500 of Ms. Frugaler’s pension, which has been added + investment income from Q1 repricing.
Note 3 – We have not yet invested into our TFSA – that won’t happen until RRSPs are maximized. I will be discussing our revised strategy for achieving our financial independence goals.
Note 4 – Last month I neglected that I have a car loan on my little FIAT that allows me to get around town, that was added in.
As you can see, this list is a lot more comprehensive than last time.
What I realized in the past month and through discussions with my wife, we have a lot of unused room in Ms. Frugaler’s RRSP, which is very important to maximize because of the super positive return we get in utilizing it.
The above list, I estimate, will take us two years to work through, hopefully. To do this, we will need to maximize our RRSP’s first. Every $ invested in our RRSP returns us about 40% of the amount invested, which can then be used to invest in either our RRSP or our TFSA – RRSP first, of course.
When we invest the full $135,000 into our RRSP, then we will get back $54,000 from the Canada Revenue Agency, whichwec an in vest into our TFSA. Thus, to save $225,000 we will only need to save $171,000. This is an ambitious goal and it might not be achievable; however, by setting a SMART stretch goal, we are able to achieve great things.
While FF nominated me a while ago, FF will recognize our day jobs can be challenging, and it is beyond that level of craziness right now. Add to that a young family and blogging / life has receded into the background…All the more reason to reach financial independence!