Financial Independence – June 2019

image

Hi everyone! Here is my FI update for June 2019 end of 2019Q2.

  • My FI goals are outlined here!
  • Last FI update as at 2019Q1 here!

For 2019Q2, we were again great savers with very few surprise expenditures. Even with our Wedding occurring in this quarter, we came out with very positive financial results. Broadly, equity markets also continued their march forward, giving us a helping hand.

  1. Save, save, save – We put away about $4.4K in Pre-Tax accounts, along with about $9.4K in After-Tax savings (50% savings rate according to the MMM formula). Pre-Tax was solely through my corporate gig’s payroll deductions where I take full advantage of employer matching. My goal was to target about $2K per month in After-Tax savings but the first 2 quarters have been good to us (I guess this was too conservative a goal!).
  2. Large expenditures – We were again fortunate in that we had no surprise large expenditures of any kind. We had some final Wedding expenses, but came out roughly net neutral with gifts. So we did not have any costly expenses on a net basis.
  3. Equities keep climbing – what can I say here other than indices were broadly up. S&P moved up about 3.8%. The Pre-Tax accounts and TFSAs returned about $6.7K while we earned a handful of interest on chequing and savings accounts.
  4. Savings – So Tangerine continued to lower their savings interest rate and I decided I’d had enough. Considering we have our down payment sitting in there. I opened up an account with EQ Bank which credits 2.3% interest for savings accounts. Much better than Tangerine at the moment and helps battle purchasing power erosion.

We had hit the milestone of $150K in 2019Q1 and continued that momentum in Q2. In total, we increased our net worth by about 14% in one quarter which is probably our best result to date.

Here are the details of the update:

Observations

  1. TFSA (Up +103%) This is more a matter of shifting some cash around. I felt we had more than enough cushion for final Wedding expenses and Questrade charges a fee if you have less than $3K in an account. It’s about $25 a quarter! So to avoid, I upped each of our accounts to about $5.5K mostly in various ETF index funds.
  2. Pre-Tax Accounts (Up +8%) Markets continued their march upward (for now). This resulted in gains of about $1K.
    • I contributed approximately $4.4K in Pre-Tax dollars, as a combination of employee/employer contributions. I maximize my employer contributions (I kick in 7%, they match 7.25%), and my employer offers a flex benefits program, where I’m able to generate some additional funds based on the benefit options I select, allowing me to kick in some extra funds into my RRSPs.
  3. Cash (Up +13%) Earned about $250 in interest (looking to increase this slightly as we moved our savings to EQ Bank). Otherwise, this was where we stashed our After-Tax savings in hopes of a down payment on a home.

Looking forward to keeping the momentum going in 2019Q3. At this rate, we may hit my original goal of $200K net worth by year-end, even though we missed the $150K target at last year-end! Exciting times as things are progressing nicely!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s