- Name: Nobleea
- Age: 40
- Net Worth: $1,049,416
- Day Job: Engineering manager at oilfield services company, Teacher (wife)
- Family Income: $140,000 (main job), $20,000 (part-time job/rental income), $85,000 (wife main job)
- Goals: Million dollar family net worth before 40 (Complete), Retirement from the primary job at 50 (for me)
We live in Edmonton where incomes are decent and housing prices are fairly reasonable. Some may roll their eyes at the high family income and say that a million dollar journey is going to be pretty easy. I have a plan to retire at 50 and pursue other interests. My wife will likely continue working until it makes sense to retire with her DB pension as the penalties for early retirement are pretty severe.
The big news is that we’re now a family of 5 by welcoming our third child in October past. My wife is on maternity leave (the 100% for 12 months option) and will probably stay on this until January 2020. This would leave a couple months with no EI but it works better for her school’s calendar/semester schedule. With 3 kids, we had to get new vehicles as 3 large car seats only fit in certain vehicles. The old vehicles were sold privately for their ‘book’ value, the new ones are not included in the NW balance sheet.
We started an RESP for our kids as soon as we could. Combined, the three kids have a total RESP balance of about $30,000 although the value is not included below. It is invested in TD e-series. Our kids are 4.5y, 2y, and 2months. We will be moving it to a self-directed RESP at Questrade early in the new year to save on fees and add flexibility in investment options.
We rent out our garage suite to a great tenant. They’ve been with us for 18 months now and I could see at least that much more in the future. The suite and house are designed such that we never really see or hear each other, so there’s privacy for everyone. Garage suites are becoming more popular in the city with many completed now. Ours is still one of the nicer ones in terms of design, finish and location, so we expect to continue getting good rent.
Our first residential infill project wrapped up. This involved buying a teardown, splitting the lot, and building two detached homes on them for speculative sale. We were able to presell both houses during construction. We made money – nowhere near as much as I’d planned/hoped, but enough to want to try it again.
I learned a lot – what’s worth spending money on, what isn’t, where the hassle is worth it, etc. We have a second project that is to break ground just after New Years and should be on the market in early spring. The net worth numbers below include an amount for infill equity which includes the cash we have in the project and expenses already incurred.
We also started a small business selling products to homeowners and builders. It’s all online through the Shopify platform. It’s been open for a few months now and it looks like it’ll average $500-1000 profit per month, which is about what I thought would be reasonable. It requires a few hours a week to run.
We achieved our long-term goal of $1Mil net worth before I turned 40. The next major goal will be to grow the investable assets to a more respectable number. I am thinking something like $750K.
In May 2009, when we started tracking net worth in earnest, the value was $136,377.
Net worth numbers:
- Cash: $1,673
- Registered/Retirement Investment Accounts (RRSP): $236,138
- Tax Free Savings Accounts (TFSA): $0
- Defined Benefit Pension: $220,000
- Principal Residence: $1,130,000 (N/C)
- Infill Project Equity: $145,600
- Small Business Account/Inventory: $15,000
- Vehicles/Other: $16,000
- Mortgage: $709,610
- Credit Cards: $5,385
Total Net Worth: $1,049,416
Some quick notes and explanations to common questions:
Cash includes bank account balances in two accounts, plus any gift card balances. We use cash flow modeling to predict the maximum amount we can put towards debt/investments today without having a negative balance in the future, taking all one time or non-regular bills into account.
Loans and Credit Cards
The credit cards are paid off in full every month with no interest due. We put all our expenses on credit cards for cash back. As this can be a substantial amount some months, I believe it needs to have a line item in your monthly net worth as it is a liability at that snapshot in time. I just started with the PC Financial World Elite card as we do 95% of our grocery/gas shopping there.
TFSA’s will need to be replenished over the next 5 years. We cleared out the non-registered and TFSA accounts for the downpayment on the teardown property. We are going to start putting $1,000 a month back into this in 2019.
We moved into our new build in July 2016 and have completed all the landscaping. We have a 1BR suite located above our detached garage that is rented out.
Any questions or comments, let me know in the comments!If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).