last month I didn’t share the graph, but it had gone down despite adding to my RRSP. This month it is higher again. Estimated withdrawal rate of 3.16%. I do wish past me had actually invested the money when I put it in, but it’s done now.
ETA: I just looked up our estimated CPP if we took it at 65. Not quite sure what to do with that info. It substantially changes the sequence of return risks.
We hit $500k! I added lines to the graph to show every time we crossed a $100k milestone so I could look at the difference in timing
(not counting house equity or mortgage)
my net worth has gone up almost $50k this month! my company’s stock went up a bit, which had a pretty big impact cause i have a lot of it! sitting at $688k right now which makes me feel like such a rich bitch!!! up $100k since april, dang.
Maybe this isn’t the right place for this discussion, but why are you leaning towards starting CPP later? I’ve heard interesting reasons for early and late start, and I’m curious about your choice.
it’s a good question. I hadn’t really thought about CPP until today - I didn’t think I would have contributed enough to make a meaningful impact since I only worked for half of the maximum time, and ditto the shadowy one.
And I didn’t feel like finding 20 years of contribution information to put into the calculators I’d heard about. But if I’m understanding the MyService Canada website correctly, if we wait to take it until 70, then we’d be able to cover well over half of our assumed annual spend just with CPP (there seems to be a mistake in the system for 2006, but even so).
My initial thought is that it’s a hedge, so put off taking it, because if it’s needed we’d like to get more. I’m also looking at the age of my grandmothers when they passed and their health levels, and the shadowy one’s grandmother also made it past 90, so insurance against a longer life seems to make sense.
Maybe we won’t max out what we could have gotten from the program, but we have a history of not optimizing all the money we could possibly get out of the govt.
it seems to make doing the kitchen renovation less likely to be a self-indulgent splurge that puts our long term financial comfort at risk. But maybe that is just me seeking info that reinforces it being ok for me to do the things I want to do.
Your reasons make sense for your situation. I like the way you explain these decisions.
I strongly endorse doing this kitchen reno you’ve been wanting for so long.
Because I’m getting CPP disability right now I have to start taking regular CPP at 55. I don’t get to make the CPP decision so I like creeping on other people’s choices.
Not counting the house, which has gone up, we are back where we were in the spring of 2022. Which is better than it continuing to go down I guess?
We just sank twelve grand of savings into electrical upgrades so it’s nice to see things still going upward- it feels like that expense just disappeared in the market increase (I do know that’s not how it works…)
ok, you can barely tell, but we crossed that next marker line
The thing that is striking to me is how far away the March 2020 dip is, both in value and in relative time on this graph.
and for a bit of humour, the shadowy one just got an email from one of the main places the money is in. In part it reads, “You’ve just received your [] statement, and might be wondering what next steps to take. We know that markets can be unpredictable. While your gut might be telling you to sell and cut your losses, historically, we’ve seen that markets eventually stabilize. That’s why it’s important to keep a long‑term mindset when it comes to your investments.”
Woooh! You are damn close to a million!
I know, its crazy!
As expected, a bit of softening, having us drop below that fake line. Estimated WR based on rolling 12 month spend also took a bit of a hit because I decided to move my credit card payment to this month instead of next one, which meant an artificial blip from double credit card spend. It should sort itself out over the course of the year.
How do you guys value pensions when calculating net worth? If I will get $xxx from age 55 on, but I don’t have a transparent pension system and so don’t know what the cash value is, how is that included?
My current system is to pick a number that feels right in my soul and use that. No math was involved in the selection.
3 options
hmm, you could do more stuff around projecting that the value of the pension is currently lower because it is not yet at the 25x, and it will get there by the time you’re 55, do assumptions around return rates and rate of inflation
But that seems annoyingly fiddly
I tried putting the future income x 25, as a constant for all my projections and it made my NW skyrocket in a way that is not at all reflective of reality. I think of my NW as what I would have if I sold everything today, and the number I got from that experiment was grossly high.
This is how I do. The other way doesn’t give me the picture I’m really looking for, although it is fun to see the absurd number sometimes if I’m feeling complainy and I want to feel more privileged than I already do.
ETA: Meaning, I have also not figured out how to arrive at a realistic NW number and it is annoying.
ok, so what if we said you’re 40, and you’ll be 55 in 15 years.
assume the market returns 5% and there is 0% inflation (or the market gives 5% over the rate of inflation)
in 15 years $1000 grows to $2079
So basically, the present value would be the amount you expect at 55, multiply by 25 and divide by 2.
