As noted in our post with\u00a0our updated FIRE goals\/numbers<\/a>, we are aiming to get to the ~$1.26M mark as our FatFIRE goal.\u00a0 We were only $6,524 away in Q1 2022 and we’ve now seen the markets sliding down down down in 2022 so now we are nowhere as close.\u00a0 Let see how we compare with our goal.<\/p>\n Our current liquid portfolio is sitting at:<\/p>\n $1,167,562<\/p>\n Not terribly far away but with giving up our steady paycheque and no longer receiving EI from parental leave it’s highly unlikely we will get to that $1.26M number, which is ok!<\/p>\n For those who use the 4% rule, this portfolio size would equate to an annual withdrawal of $46,702.<\/p>\n We currently have ~$118,000 in cash so we will deploy another $9,000 to the markets during Q4.\u00a0 Note we are not considering any CCB coming in or coaching clients or any other one off income that may come our way that will likely lower the amount of cash we actually need on hand.<\/p>\n Starting in 2023, any taxable income\/dividends we receive from our taxable account we plan to withdraw, rather than drip right back into the non-registered accounts.\u00a0 With this GIC mortgage payoff plan, we also will have interest income to report over the next 3 years from that (taxed like ordinary income).\u00a0 We will also withdraw from a mix of our RRSPs\/taxable accounts first up to the federal basic amount (accounting for any dividends, earned income, etc).<\/p>\n So the math looks like this for both Nic and I:<\/p>\n Federal Basic Amount – Income\/Dividends from Taxable Accounts – GIC interest + CCB income = Amount to Withdraw from RRSP\/Taxable Accounts<\/p>\n Each year we will see what the equation looks like and decide how much to pull from our RRSPs vs taxable accounts to get our total cash to $40,000 for the year in the most tax efficient way.<\/p>\n Stocks\/Bonds\/Cash Allocation:<\/p>\n I actually really like this set up.\u00a0 Slowly the bond and cash percentage will go down and our plan is to glide back to ~90% equites over time.<\/p>\n We\u2019re currently sitting at a 59\/41 USD\/CAD split.\u00a0 With the USD\/CAD exchange rate sitting at 1.36 our liquid portfolio fully converted into CAD is $1,416,640.<\/p>\n Let\u2019s see what this means when it comes time to withdraw.<\/p>\n I like looking at a few different scenarios as we can cut down our spending if need-be in hard times (market tanks \u2013 hello 2022!).\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. We do NOT rely on\u00a0any<\/b> external support in our FIRE figures (CCB, CPP\/SS, OAS) and view them as icing on the cake or to account for any future unexpected medical expenses we may encounter in old age.<\/p>\n Even with all the market craziness of 2022, it\u2019s pretty awesome to see that the only scenarios where we are currently over the \u201c4% rule\u201d is if we spend $50k\/year and not have the USD\/CAD conversion in place and also assume $0 in CCB. Similarly at the $60k\/year mark we are over if we do not include CCB but include the currency conversion.\u00a0 It is highly unlikely we will spend $50,000+ every year and<\/b>\u00a0have the USD\/CAD sit right at par\u00a0and<\/b>\u00a0somehow see CCB dramatically altered\/removed in the near future.<\/p>\n As tallied up in our Q2 life and spending report, we spent ~$39k this year so I\u2019m still loving what we see in this chart despite all the recent market craziness!<\/p>\n Total Assets:<\/p>\n *Our house could sell for ~$500,000 in today\u2019s market but we like to keep this value close to our purchase price as we do not know the true value until we actually sell in the future.<\/p>\n Total Liabilities:<\/p>\n Net Worth:<\/p>\n $1,795,062 \u2013 $249,314 = $1,545,748<\/p>\n Total: $1,545,748<\/b><\/p>\n There we have it! Comparing this to\u00a0last quarter<\/a>, we were sitting at $1,546,309 so we are down $561 or 0.03%.\u00a0 Really not much change.\u00a0 I am hopeful that we see a rebound in these markets soon, but who knows what the future holds!\u00a0 Comparing this figure to this time last year<\/a>, our net worth was $1,551,483 so we are down $5,735 or 0.3% in a 12 month period.<\/p>\n Since taking time off at work in June 2021<\/a>, we\u2019ve seen our net worth grow by $21,335.\u00a0 This is still just wild to me.\u00a0 It will be interesting to track this number over time.<\/p>\n During Q4 2022 we will reach out to our brokerages to request the DRIP setup to be turned off for our taxable accounts starting in 2023.\u00a0 We will also hopefully find a renter while we are gone in Portugal for 2 months to help offset those costs (future post will all the Portugal numbers). I also need to figure out how to access my DC pension plan from my previous employer and get my vested RSUs and shift that all into self managed accounts.<\/p>\n Even though I understand the\u00a0magic of compound interest<\/a>, it continues to amaze me.\u00a0 I\u2019m curious to see what the market does this upcoming quarter.<\/p>\n Those following along know we have a few other items in our portfolio that we like to hide behind the scenes as our true emergency fund such as my Health Savings Account (HSA), my pension from my previous employer, Nic\u2019s small 401k from her former employer, our children\u2019s RESP, and any CCB\/CPP\/SS\/OAS potentially coming our way in the future.\u00a0 So for the sake of this exercise we are not including them.<\/p>\n The key to all of this is to stay flexible.\u00a0 If we see the markets tanking during the early years we have no problem tightening the spending belt and taking some staycations vs longer vacations.\u00a0 We also have no problem picking up some fun part time gig for 15 hours a week to add some extra padding.\u00a0 We are humans, not robots, and are capable of adjusting plans if need be.<\/p>\n Voila! Stay tuned to see how our net worth has changed in 3 months when we check back in on this. Stay weird and wealthy muchachos!<\/p>\n If you liked this article and want more content like this, please support this blog by sharing it.\u00a0 Not only does it help spread the FIRE, but it lets me know what content you find beneficial.\u00a0 Writing is NOT my strong suit and it honestly takes me hours to write each post so the more encouragement the better!\u00a0 Engaging in the comments below keeps me motivated.\u00a0 You can also support this blog by subscribing to receive emails anytime a new post is published.\u00a0 Thank you FImily!<\/p>\n We believe in stacking up life hacks to keep your enjoyment levels to the max without depleting your bank account.\u00a0 Here are some ways to further educate yourself and save thousands of dollars over your lifetime by making some simple adjustments:<\/p>\n Hey everyone!\u00a0 Last week we tackled the life and spending side of things and this week we\u2019re back with a net worth update. How Do …<\/p>\nChanges This Quarter<\/h2>\n
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Portfolio Details<\/h2>\n
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Withdrawal Rates<\/b><\/h2>\n
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<\/p>\nPutting It All Together<\/b><\/h2>\n
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Support This Blog<\/b><\/h2>\n
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