Hey hey! \u00a0It’s been a busy quarter around here!<\/p>\n

The summer for us means lots of time outside and at the cabin. \u00a0This year we took two 2 week long trips out to the cabin to spend time out in nature. \u00a0It’s always so good for the soul to do some forest bathing. \u00a0The cabin set up is such an ideal spot for families with young kids – ice cream shop, a lake to bike around, swimming at the pool and lake, hikes to go on, music at the amphitheatre, kayaking, berry picking, sand castle building, petting horses, playgrounds, star gazing at the dark sky observatory, golf and mini golf, farmers market, and various kids activities going on. \u00a0This year the visitor centre started offering free activity bags which would include crafts, books, games, etc with a certain science theme (birds, bees, rocks, space, etc) that our kids loved getting each day. \u00a0We also ventured off site to go to a dinosaur museum, the sand hills, and the goat farm.<\/p>\n

My mom was up visiting at the beginning of the quarter which ended up being a longer than expected stay due to a 12 night stay at the hospital. Thankfully she’s better now and it was nice to have extra time with her, even under unwanted circumstances.<\/p>\n

We also hosted some of our FIRE friends who live out east in the GTA but love the Rockies. \u00a0They spent a month calling our basement home as they galavanted on an insane amount of amazing hikes. \u00a0I honestly wasn’t sure what it would be like to have people stay in our (non suited) basement – but it was so lovely and the door is open if they ever want to return again in the future. \u00a0We all respected each others privacy but also would hang out for an hour or two here and there when our schedules aligned. \u00a0It was nice to have another kiddo in the house for our kids to play with and bobbing for crab apples in our backyard became a nightly ritual.<\/p>\n

Finn also did a week of camp at the science centre and outdoor soccer for 5 weeks.<\/p>\n

We booked tickets to head to Colorado in the fall to visit some family down there.<\/p>\n

To say we’re tired is an understatement! \u00a0I still don’t understand the “won’t you be bored without work” comment…<\/p>\n

How Do We Stand<\/b><\/h2>\n

July showed some growth, August was roughly flat, and then September ended up being a rocky month for the markets and brought the quarter’s earlier gains down back to lightly under Q2 results. \u00a0As of the end of September 2023, our current liquid portfolio is sitting at:<\/p>\n

$1,282,337<\/p>\n

Last quarter our net worth increased by 4.6% and this quarter was down by 1.78%.<\/p>\n

Even with this bump down, we’re still up 8.42% YTD and that’s after spending from our portfolio vs contributing into it. \u00a0This is the crazy power of the markets, investing for the long term, compound interest, being in tune with sequence of returns risk, and keeping your withdrawal rate low. \u00a0We shall see what the stock markets continue do this year\u2026<\/p>\n

For those who use the 4% rule, this portfolio size would equate to an annual withdrawal of $51,293.<\/p>\n

Changes This Quarter<\/h2>\n

\n
• Our 1 Year GIC paid out as part of our mortgage payoff plan<\/a>. \u00a0We’ll keep the majority of it in our HISA earning 4.1% and periodically shuffle over to our checking account to account for this year’s mortgage payments.<\/li>\n
• We met the minimum spend on our 4 credit cards we’ve applied for this year and we’ve earned 290,000 IHG hotel points, 85,000 Chase Ultimate Rewards points, and 71,000 Hilton Honours points. \u00a0We’re in the process of applying for card number 5 (TBD) for the year. Thank you US credit card companies for still allowing us to somehow get approved for US cards as Canadian point options suck in comparison.<\/li>\n
• We had a few larger expenses this quarter:\n
  \n
  • We had plumbers come out to fix an issue with our backyard spout = $450<\/li>\n
  • We replaced our eavestroughs and downspouts throughout the entire exterior of our house = $950<\/li>\n
  • Bought flights for our family and 1\/2 my mom’s ticket to Colorado = $1,500<\/li>\n
  • Random house fixings – new light fixtures, bulbs, rugs = $475<\/li>\n<\/ul>\n<\/li>\n
  • Here is our cash plan for the next two years:\n
    \n
    • $16k for year 1 monthly mortgage payments<\/li>\n
    • $35k for year 1 spending<\/li>\n
    • $35k for year 2 spending<\/li>\n
    • $6.5k for year 1 TFSA contribution<\/li>\n
    • $6.5k for year 2 TFSA contribution<\/del>\n
      \n
      • Will keep this money invested instead and withdraw next year<\/li>\n<\/ul>\n<\/li>\n
      • $5k for year 1 RESP contribution<\/li>\n
      • $5k for year 2 RESP contribution<\/del>\n
        \n
        • Will keep this money invested instead and withdraw next year<\/li>\n<\/ul>\n<\/li>\n
        • Total cash goal: $97.5k cash<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

          While this all sounds lovely in theory we are picking up random bits of income here and there and we won\u2019t drain $97,500 in cash within our first 2 years of early retirement.\u00a0 It\u2019s been a year since this plan was crafted and we are still sitting on ~$101,000 in cash on hand so clearly we are currently too cash heavy.<\/p>\n

          We did not consider any CCB coming in or coaching clients<\/a> or any other one-off income that may come our way that will likely lower the amount of cash we actually need on hand. We like to play it safeeeee. Part of me says to throw a chunk of this cash into the market. \u00a0So far we haven\u2019t but we shall see. I think Q4 will be the first time our cash holdings will drop below $100k and we are A-OK with that.<\/p>\n

          Portfolio Details<\/h2>\n

          Any taxable income\/dividends we receive from our taxable\/non-registered accounts we plan to withdraw, rather than drip right back into the non-registered accounts since we have to claim this income for tax purposes anyway.\u00a0 \ufffc<\/p>\n

          We also will have interest income to report over the next 2 years from our\u00a0GIC mortgage payoff plan<\/a>\u00a0(taxed like ordinary income).<\/p>\n

          We will also withdraw from a mix of our RRSPs\/taxable accounts up to the federal basic amount which is currently at $15,000\/person for 2023 (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 \u2013 Income\/Dividends from Taxable Accounts and Kiddos Informal Trusts \u2013 GIC\/HISA interest = Amount to Withdraw from RRSP\/Taxable Accounts<\/p>\n

          So we each will be \u201cearning\u201d the Federal Basic Amount for the year ($15,000 each for 2023) as well as CCB (~$6,000 tax-free for 2023).\u00a0 Alberta also launched its Alberta Affordability Action Plan<\/a> which provided us with another $1,200 in tax free income ($200\/month from January-June 2023). And then there\u2019s the Climate Action Incentive Payments<\/a> of ~$1,500\/year for some more tax-free money. Geesh, Canada, stop being so generous! Then of course there\u2019s the cash cushion on hand too.<\/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 the Federal Basic Amount for both of us each year.\u00a0 Some years we may end up withdrawing more than the Federal Basic Amount and owe some taxes which is fine too.\u00a0 But in reality, the capital gains from our taxable account are only taxed on 50% of the earnings so it should be quite easy to withdraw the Federal Basic Amounts for both of us + the various tax-free benefits listed above coming in and still live on a very healthy income for the year (for our standards at least).<\/p>\n

          If we happen to bring in any sort of additional income, we view this as gravy to the above plans and have no issues paying taxes on that.<\/p>\n

          Stocks\/Bonds\/Cash Allocation:<\/p>\n

          \n
          • Stocks: 84.6%<\/li>\n
          • Bonds: 4.8%<\/li>\n
          • Cash: 8.9%<\/li>\n
          • Crypto: 0.9%<\/li>\n<\/ul>\n

            (Some of this is slightly off due to currency fluctuations in my spreadsheets.\u00a0 Meh.)<\/p>\n

            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 57\/43 USD\/CAD split.\u00a0 With the USD\/CAD exchange rate sitting at 1.35 our liquid portfolio fully converted into CAD is $1,567,805.<\/p>\n

            Withdrawal Rates<\/b><\/h2>\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.\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\u00a0external 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

            <\/p>\n

            It\u2019s pretty awesome to see that the only scenarios where we are currently over the \u201c4% rule\u201d is if we spend $55k+\/year and not have the USD\/CAD conversion in place and also assume $0 in CCB.\u00a0 It is highly unlikely we will spend $55,000+ 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

            We spent ~$45,000 during our first \u201cfiscal year\u201d of early retirement, so I\u2019m loving what we see in this chart.<\/p>\n

            Putting It All Together<\/b><\/h2>\n

            Total Assets:<\/p>\n

            \n
            • Liquid Investments: $1,308,481<\/li>\n
            • GIC For Mortgage Payoff: $212,000<\/li>\n
            • Home: ~$400,000*<\/li>\n
            • Total: $1,920,481<\/b><\/li>\n<\/ul>\n

              *Our area continues to remain a hot real estate market and our house could sell for ~$500,000-$550,000 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

              \n
              • Mortgage on our primary residence: $238,144<\/li>\n
              • Total: $238,144<\/b><\/li>\n<\/ul>\n

                Net Worth:<\/p>\n

                $1,920,481 \u2013 $238,144 = $1,682,337<\/p>\n

                $1,692,188<\/p>\n

                Total: $1,682,337<\/b><\/p>\n

                There we have it! Comparing this to\u00a0last quarter<\/a>, we were sitting at $1,692,188 so we are down $9,851 or 0.58%.\u00a0 Considering September was all over the map, I’m ok with this! \u00a0Comparing this figure to this time last year<\/a>, our net worth was $1,545,748 so we are up $139,589 or 8.8% in a 12 month period.\u00a0 No too shabby when neither of us are working our corporate jobs anymore!<\/p>\n

                Since taking time off at work in June 2021<\/a>, our net worth was sitting at 1,524,413 so we\u2019ve seen our net worth grow by $157,924. This is still just wild to me.\u00a0 It will be interesting to track this number over time.<\/p>\n

                During Q4 2023 we will sell some ETFs to get us up to our Federal Basic Amounts for the year.<\/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 pensions from my previous employers, Nic\u2019s 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

                Canadian Financial Summit: All-Access Pass Giveaway!<\/h2>\n

                In our last post<\/a> I mentioned the Canadian Finance Summit that’s taking place next week – October 18-21. \u00a0We have TWO FREE All-Access Passes to giveaway to blog readers! \u00a0To be entered into the giveaway, comment below with your biggest takeaway you’ve received from reading this blog (not this post, our blog overall).<\/p>\n

                I will select the two winners on Tuesday October 17th just before the summit begins. \u00a0All I will need is your email to get it set up for you.<\/p>\n

                Good luck!<\/p>\n

                Support This Blog<\/b><\/h2>\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

                \n
                • Investing Newbies: Check out our\u00a0free Investing 101 Series.<\/a><\/li>\n
                • How much are you paying for your phone plan?\u00a0 Canadians,\u00a0learn more about Public Mobile, and see how we are paying $3\/mo for our cell phone plan<\/a>.<\/li>\n
                • How much are you paying for internet?\u00a0 Canadians,\u00a0learn more about the various Independent Service Providers out there to see who services your area so you can lower your monthly bills<\/a>.<\/li>\n
                • How much are you paying for home insurance?\u00a0 We were able to reduce our rates by 25% by switching over to Square One Insurance.\u00a0 If you live in BC, AB, SK, MB, and ON,\u00a0check out Square One for your home insurance, landlord insurance, and\/or tenant insurance<\/a>.\u00a0 Use this link to receive an extra $15 off your quote.\u00a0 (Note that you must use this link to start the process to get the $15 off even if you prefer to pay over the phone.)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                  Hey hey! \u00a0It’s been a busy quarter around here! The summer for us means lots of time outside and at the cabin. \u00a0This year we …<\/p>\n

                  Quarterly Net Worth: Q3 2023 + All Access Pass Giveaway<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[16],"tags":[],"yoast_head":"\n