2016 was a stellar year, I must say (well not for the rest of the world I suppose, but it was for my portfolio)!
I increased my net worth by $68,330 from last year’s update and reached my annual goal of increase my net worth to $420,000, that’s a 17.8% increase from last year’s January 2016 update. I surpassed my goal of increasing my net worth by $32,500. If I include my pension contributions, my net worth is over $510,000, which means I am a half-a-millionaire! If I include the home value according to my municipality assessments (which apparently went up by 24% over last year) I will be over $660,000, which brings me much closer to my $1,000,000 net worth goal which I hope to reach within 7 years. It might actually be doable!
Hopefully this wonderful upswing will continue for 2017.
Okay, so here’s the breakdown for January 2017: $452,500 (+$13,670)
CASH: $61,700 (+10.9%)
- Once I deplete the cash in my non-registered account (yes, there is more cash in there) I will start moving this cash into investing accounts. It is nice to keep it here for an emergency fund anyway.
- I added up my chequing and savings accounts (High Interest Savings Account). I automatically deduct money from my chequing account and have it siphoned to the HISA account (paying yourself first)
- It’s down this month because I transferred $5500 cash into my TFSA in the first few days of January
- These are stocks that capture the “moment in time”, including unrealized gains or losses in my BMO Investorline and Questrade accounts.
RRSP: $66,960 (+3.4%)
- This includes the pre-authorized monthly contribution into my TD E-Series account, and a Questrade RRSP account.
I max out both my TFSA and RRSP (read my TFSA vs RRSP great debate over here)
- I’m not including my defined benefit pension contributions which is >$59,000
- I paid back the Home Buyers Plan for my down payment in 2013.
TFSA: $68,650 (+12%)
- Increase is mainly from the $5500 cash injected into the TFSA account, but the TSX has done remarkably well this year (17%!)
- It will be very exciting the day that my TFSA account reaches over $100,000.
- One of my to do tasks is to track my dividend payments in an excel spreadsheet
- Watch out for TFSA over contributions, guys, the CRA will get you for every last penny.
- I signed up for a Tax Free Trading Account with Questrade in 2009 and haven’t looked back!
- This is the approximate purchase value
- Am planning to rent it out in two years or sell it. I think am leaning more towards selling it.
- I don’t use the municipal assessed value, but if I did, my net worth would increase by $150,000!
CAR: $15,625 (0.0%)
- I updated it for 2016-2017 with the Canadian Black Book price, will update it again in July 2017 with the depreciated price
Credit Cards: -$640
- I just have my MBNA World Points World master card right now as I cancelled the other cards… I’ll be looking for more cards again with the goal of travel hacking my way to trips.
- I use Mint.com account but I only added my credit card (this is helping a bunch so that I can keep track of my spending)
- I’ve redeemed $250 for 2016 so far with my MBNA World Points World mastercard
- I pay off my full amount every month (and folks, it’s VERY important you do so otherwise you’re losing out on a 19% return!) but include it in my net worth update so I have an accurate picture of my actual net worth. I sort of think “If I were to sell everything right now, what would my net worth be?” I guess I shouldn’t put it in the liabilities column since i pay it off regularly, BUT in mint.com it’s under the liability column so I’ll do the same.
Mortgage: $115,180 (-1.2%)
- I pay an extra mortgage payment a month
- I usually put $20,000 annually on top of the extra mortgage payment per month but haven’t decided what I’m going to do this year, I will probably not put in $20,000 so I have more liquidity
- My intent is to rent it out in a little while (see above). In order to offset future rental income, I chose to acquire a mortgage instead of paying for the majority of the condo, and would rather not put all my eggs in one basket (e.g. real estate).