2007 Cash Flow

Well the numbers are in for 2007. We have a lot of sub categories so I will only note the larger ones.

Our total spending for the year was about $31,000. This includes all expenses except those that were scheduled to be paid from earmarked pre-retirement savings. Savings paid about $18,000 for a newer used car and $3,000 on boating.

Income Tax ~$2,600
Municipal Property Tax ~$1,800
Groceries ~$7,000
Restaurants ~ $2,900
Entertainment ~ $2,300 including car trip expenses
Home Maintenance ~$2,000
Auto Gas ~$1,500
BC Medical $1,152
Auto Insurance $1,300
Clothing/Hair $1,200
Savings for our next car replacement $2,000 (pay cash every 5-10 years)
BC Hydro ~$900

We own our home and we don't have a lot of vacation expenses other than boating. The total for the year is well within my pre-retirement estimates.

TD Bank follow-up January 8, 2008

TD bank stock is close to an interesting milestone. If it breaks below the $64 dollar level this makes a much lower price drop more likely (not guaranteed).

I have been following Canadian Banks for some time. Bank of Commerce and Bank of Montreal have both seen a large price drop so far. My best guess is that we will see similar drops in all Canadian Banks. They have all had an excellent Bull Market run for many years and a large price drop (Bear) would still qualify as normal market action.

Today's news includes a "rumour" that TD may be exposed to the US Subprime Real Estate problem. This would not surprise me as TD has been working on getting a foothold in the US Banking industry. This rumour could lead to a break below the $64 level which in turn could lead to much lower prices to come.

Net Worth Debate....include the house?

I noticed some blog posts lately about net worth and retirement. Its also that time of year when we receive our property assessment notices. It can lead to questioning if a home went up $30,000 this year should that increase be included in a net worth statement?

The short answer is yes.

If push comes to shove "you can always eat your house". By that I mean you can always sell your house and rent a place to live. This will provide excess cash to live on if you need it.

On the other hand...if you stay in your house when retired and don't take out a mortgage on it to get access to some cash flow...it won't provide any income. But home ownership means you won't have to pay rent each month and this will reduce the need for retirement income.

I know some people who have sold more expensive homes in Vancouver, bought less expensive newer ones on Vancouber Island. They use the extra cash for other things in retirement like boating.

Owning a home gives one more options when retirement comes around.

Canada and US...Twin Stock Markets

The Canadian and US Stock Markets are for the most part, joined at the hip. Historically the degree of change varies a little but they run pretty much parallel.

Starbuck Follow-Up/News

The stock price continues to decline for Starbucks. Now at $22.50 and the P/E still at 26. Still a long way to go before the price makes business sense.

Today news came out about a problem with their thermos coffee cups burning people when the handle fails. Reminds me of a Seinfeld show.

This won't help the stock price.

Water Bill Caution

If you have a water meter, and if your home plumbing develops a slow water leak, one you don’t notice, your bill will climb. Keep tabs on the consumption on the bill, comparing it to normal. Otherwise you risk getting a big surprise on your water bill payment one day. A bill could easily be a couple of hundred dollars higher just for the leak, especially if your paying for both water and sewer when both costs are based on the water meter reading. Toilet leaks that run 24/7 are a most common cause of this sort of thing. Fortunately, you can hear toilet leaks during the night when the house is quiet if you listen while …well you know.

TD Bank...penny stock or blue chip?

This is such an interesting move by the price for TD Bank stock that I had to post it. It took the best part of the last 2 months to come down from $75 to a low of $64. Then, acting more like a penny stock driven by the power of a stock market bubble it regained $75, an increase of about 17 percent over the last four trading days. Now that is volatility!