Retirement Progress Report 6

isla-looking-cool

I missed last quarter’s report so here it is up to today, and I’ll post another one for year’s end.

TFSA: $61,636.75

It’s up $24,807.38 since April… but it’s not actually that great. This is pretty blown out of proportion because we’re holding HST in there until it’s due, so that number is way higher than it should be. Another factor that makes that leap seem huge is I’m now just reporting the current market value of the TFSA because it’s gotten too confusing for me to figure out what I was doing before (which was something like tracking the book value of only the money contributed, ignoring changes in market value, which was useful to see how many net dollars were making their way into the account, but it also painted an unrealistic picture of the real-world value of the holdings and accounts for that past number being lower than it should have been).

SO from now on, market value is what you get!

I’m also happy to announce that my TFSA is now maxed out, and we’re stuffing Lia’s next. Why not have started with Lia’s, you’re wondering? It’s because we’re also rebuilding her SDRRSP from having demolished it to buy our house, so it seemed right to have some assets under my name. Not that it matters. We’re each other’s beneficiaries anyway.

I spoke to someone at TD to figure out where that TFSA limit was, and it’s actually on your most recent CRA Notice of Assessment (I think it says how much you’re still allowed to contribute to your TFSA). Because mine has also earned distributions (paid out in Dec) and appreciated in value, that explains why the value of my TFSA exceeds the 2018 contribution limit (of $57,500 if you were to start today).

According to taxtips.ca – at the current rate of inflation, the TFSA contribution limit will increase to $6,000 per year in 2019.

The best thing to do with a TFSA is max it out, then leave it full so it can:

  1. Appreciate in market value at an average rate of 7% over the long haul.
  2. Earn roughly 2% in annual distributions in December, tax free. So at some point in late December, something like $1,200 in mutual funds will automatically be added to my holdings. Compound interest baby!

So at some point in 2019 I’ll put $6,000 into my TFSA.

Debt / Mortgage: $159,968.15

Down $3607.19 since last report. I love seeing the 5 in there where the 6 was now that it’s below $160,000. The iceberg is melting.

Total assets:

$1,162 (My RSP) + $9,642.67 (Lia’s SDRSP) + $61,636.75 (My TFSA) = $72,441.42

Retirement Progress: $72,441.42 / $959,968.15 (mortgage + $800k projected amount needed to retire) = 7.5% of the way there!

Here’s my ghetto loading bar visualizing 7%:

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