Monthly Cheesy Index

It’s time for that magic number, the one that shows how close we are to FI (sort off). It is time to present to you the April 2017 Cheesy Index!

April 2017 Cheesy Index

We had another increase this month, but it was rather modest considering the various good incomes in April. We are up to 61.4%, that’s just 0.4% for the month. However, we are still very much on track to hit our 65% target before the year is over (and hopefully sooner).

The usual contributors for the increase in the Cheesy Index are the real estate, dividend income and our pretty solid savings rate (i.e. the money we did not spend). But this month we also received the second payment of the 2015 Canadian Tax return (for Mrs. CF this time around). For all this money coming in, why such a modest increase in the cheesy index? Two words: exchange rates!

April 2017 Cheesy Index

April 2017 Cheesy Index

Exchange Rates

What we have been dreading (and expecting) has finally happened. We were hit massively by the CAD/EUR exchange rate in April. Where the exchange rate was a nice CAD 1.42 by the end of March, it changed to 1.49 by the end of April. That is an almost 5% change, in the wrong direction! Ouch.

In short, the value of Canadian shares nosedived this month (expressed in EUR), which had a significant impact on our overal net worth and thus the Cheesy Index. Still surprised we actually did not see a drop in the Cheesy Index. On the positive side, the total value of the Canadian shares actually rose from the end of March to the end of April (due to dividends and capital gains). This obviously buffered some of the exchange rate effect.

Other good news is that it does not matter (yet), as we will now withdraw this money for quite some time. We will therefore see many more ups and downs going forward. However, we are kind of hoping the oil price (and/or other commodities) will increase again, which usually lifts the value of the CAD vs. its counter parts. This will allow us to shift the tax return money to Europe, so we have more money to invest here.

Why not invest in Canada, I hear you ask? We have no more ability to add the funds tax efficiently into the RRSP account. Nor do we have a “normal” investment account in Canada either (and opening one from a distance is hard/impossible). In short, the funds need to be transferred to the Netherlands at some point in time. Just no sure when (I know, we should not try to time this!).

How was your April? Did you also record an increase in your net worth of investment index?

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