{"id":3894,"date":"2021-10-13T23:39:24","date_gmt":"2021-10-14T05:39:24","guid":{"rendered":"https:\/\/modernfimily.com\/?p=3894"},"modified":"2021-10-13T22:31:13","modified_gmt":"2021-10-14T04:31:13","slug":"quarterly-net-worth-update-q3-2021","status":"publish","type":"post","link":"https:\/\/modernfimily.com\/quarterly-net-worth-update-q3-2021\/","title":{"rendered":"Quarterly Net Worth Update: Q3 2021"},"content":{"rendered":"
Is it seriously October already? Hoooooowwwww did that happen?!<\/span><\/p>\n Ok, on to the numbers! For whatever reason Word Press is not allowing me to insert pictures at this time so this is going to be a much more plain Jane net worth update than what you are all used to.\u00a0 Maybe this is the blogging world telling me to scale back with my posts.<\/span><\/p>\n As noted in our recent post with<\/span> our updated FIRE goals\/numbers<\/span><\/a>, we are aiming to get to the ~$1.26M mark as our FatFIRE goal.\u00a0 Call me crazy, but I still think we can reach this number (or very close to it) by the time my parental leave is up thanks to my 1\/2 year bonus for 2021 that I’ll be receiving in March + compounding doing its thing + our low spend allowing us to keep our capital preserved while living off EI + CCB.\u00a0 In Q2 2021 were we sitting at $1,133,900 without the mortgage so about $165,000 to go.\u00a0 Let see if we\u2019ve dipped back or have inched closer towards our goal.<\/span><\/p>\n Our current liquid portfolio is sitting at:<\/p>\n $1,158,505<\/p>\n We do still have the mortgage in place on our home while renting out the paid off townhouse.\u00a0 We are hoping that by the time we sell the townhouse the proceeds will meet\/exceed the remaining balance on the mortgage so we can swipe that out completely and not have to dip into our investments to pay off the remainder on the mortgage.<\/span><\/p>\n We decided to continue renting with our current tenants with a month-to-month rental extension and did not increase rent prices as a thank you for paying rent on time each month (even though the rental market around here is crazy and we could easily be charing $100-200\/month more).\u00a0 It’s hard to justify itching to sell the townhouse and send the proceeds to the mortgage on our primary residence when the passive income is quite easy.\u00a0 Essentially, each year we hold on to the mortgage, we are netting ~$10,000\/year.\u00a0 Currently this is just chipping away at our current mortgage on our primary home so we don’t have to deal with a mortgage payment line item in our expenses.\u00a0 We do have mortgage interest we are paying by holding on to the mortgage so really we are netting closer to $6,000\/year after accounting for interest. This past year we dealt with two minor headaches that cost us a total of $40 out of pocket.\u00a0 Let’s say it took us a total of 10 hours to deal with these nuances, that’s like getting paid $596\/hr ((6,000-40)\/10).<\/span><\/p>\n Mortgage Balance Remaining: -$307,002<\/span><\/p>\n Net Portfolio: $851,483<\/p>\n We didn’t do any tweaking to the portfolio and are sitting content with how things are looking.<\/span><\/p>\n Right now I am focusing on having 5 years worth of cash on hand.\u00a0 Currently we have around $121,000 in cash which is actually pretty perfect.\u00a0 Why?\u00a0 If we assume $40,000 spend per year and $17,000 in CCB during the first 5 years, that’s a net difference of $23,000.\u00a0 Over 5 years that\u2019s $115,000 of cash needed (23,000*5).\u00a0 We prefer this much more cautious and conservative approach vs something like the yield shield as we want to keep our non-cash investments in the overall market.<\/span><\/p>\n Once we FIRE, any taxable income\/dividends we receive from our taxable account we plan to withdraw, rather than drip right back into the non-registered account, to shuffle over to our TFSA instead for some tax sheltering.\u00a0 Once we are down to 1-2 years of cash we will start withdrawing more from the portfolio, starting with our RRSPs first.<\/span><\/p>\n Stocks\/Bonds\/Cash Allocation:<\/span><\/p>\n We\u2019re currently sitting at a 70\/30 USD\/CAD split.\u00a0 With the USD\/CAD exchange rate sitting at 1.27 our liquid portfolio fully converted into CAD is $1,377,222.<\/span><\/p>\n Let\u2019s see what this means when it comes time to withdraw.\u00a0 I like looking at a few different scenarios as we can cut down our spending if need-be in hard times (market tanks).\u00a0 I also like looking at what our withdrawal rate looks like with Canada Child Benefit (CCB) factored in since it is such a juicy benefit that we will be receiving for the first ~15 years. As previously mentioned, we do NOT rely on <\/span>any<\/b> external support in our FIRE figures (CCB, CPP\/SS, OAS, GIS) and view them as icing on the cake or to account for any future unexpected medical expenses we may encounter in old age.<\/span><\/p>\nWhat Happened in Q3 2021<\/b><\/h2>\n
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How Do We Stand<\/b><\/h2>\n
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Withdrawal Rates<\/b><\/h2>\n