Retirement Portfolio Net Worth - as of Aug1-2018

The goal is a retirement portfolio net worth of $1,000,000 and an annual passive income of $40,000. We are currently mortgage free but won’t be including the value of our principal residence or cottage as we have no plans to sell either. We have also omitted the value of our workplace defined benefit pension plans and our children’s RESPs.

We didn't make any new contributions (yet again). However, we still had a stellar month with our net worth increasing by $15,000. The majority of this gain is due to stock market gains. Although, it looks great on paper next month could easily see drop of the same value.

ASSETS
July Contributions: $0
Retirement Portfolio: $505,517 (up $13,201 stock market gain)
Rental Property #1: $105,000 (lowest estimated selling price)
Rental Property #2: $155,000 (purchase price)

Total Retirement Assets: $765,517 (up $13,201)

LIABILITIES:
Investment Loan: $22,904 (down $1,012)
Rental Property Loan #1: $72,373 (down $511)
Rental Property Loan #2: $151,852 (down $473)

Total Liabilities: $247,129 (down $1,996)

Retirement Portfolio Net Worth: $518,388 (up $15,197)

Dividends Received (year to date): $8,670 (up $1,643)

Comments

  1. Unknown5 September 2018 at 23:36

    Well done! Depending on your province of residence, a couple can earn ~$90k in dividend income (I.e., $45k each) tax free and you seem to be on your way there.

    I wonder if it makes sense to account for any tax liabilities in your measures arising from securities or the rental properties sales. Depending on tbe size of capital gains down the road, it might cost you a non-trivial amount. And so the same way that you account for your loan liabilities for the rentals, does it make sense to create a liability account for taxes accruing.

    If however you don't plan to sell the rentals for a very long time (e.g.., until you are reaceiving your db plan pension), then it might not be that important a factor, and the $40k bridge goal may not need to account for the tax liability.

    But, in such a case, note, the rental income will be taxed as regular income, far less preferential to dividend income at lower income levels.

    Some minor considerations within your well tracked plan.

    Odetothesens@hotmail.com

    ReplyDelete
  2. Unknown18 September 2018 at 07:40

    Some good points. As of today I don't plan on selling the rentals until I'm "retired" so I haven't started planning specifically for any capital gains tax (yet). The property is owned jointly with my spouse so we'll be able to efficiently income split in retirement.

    ReplyDelete

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