$132, 262 (+ 2.4%)
Some of you might have noticed that I haven’t done a net worth update in a while. At first, I decided to stop posting my updates because of all the negative comments I was receiving on my home purchase. Then I decided to compromise, because really, a personal finance blog isn’t personal if I don’t share some detail with you all :) As silly as it may sound to some of the readers that are bearish on real estate, I am planning to live in this home for 5-10 years (or maybe more, who knows) and did not primarily purchase it for investing reasons. We just wanted a place to call our own. The thought of this piece of land being “ours” really hit home when I decided to grab a shovel last weekend and dug up a garden in the back yard. It was quite a surreal experience.
The renovations and everything are all done to the
money pit house and now we’re in the process this month of finalizing everything and finding a tenant for downstairs. We just have a few minor things to do before we can start taking pictures of the suite and getting it ready for Craigslist.
Okay, so here’s the breakdown for this quarter:
CASH: $10956 (-13%)
- The cash accounts took a hit because we finished paying off the contractors for our renovations
- Boyfriend and I have a joint account which our mortgage is deducted from, and our own personal accounts
- 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)
- I have $1592 saved up for my goal of climbing Mt Kilimanjaro (highest peak in Africa) within 1-2 years. If you want to help contribute to my personal lifelong dream, feel free to sign up for an ING account with my orange key. You’ll get $25 if you start an account with $100, and I will get $25 too. How’s that for shameless self promotion?
STOCKS: $17216 (-13%)
- Don’t worry, I haven’t been doing poorly with the market. I sold 75 shares of Encana in Canadian Funds for a profit and moved about $1500 into my RRSP to max it out this year. I bought some USD (since our dollar is so good right now) and bought shares in an American corporation.
- These are stocks that capture the “moment in time”, including unrealized gains or losses in my BMO Investorline and Questrade accounts. I added up USD and CAD stocks as “Canadian” money to be simplistic (even though our dollar is high now)
RRSP: $11088 (+27.2%)
- This includes the pre-authorized monthly contribution into my TD E-Series account (primarily bonds), a GIC in my ING Direct Account and my new Questrade RRSP account.
- I have about $700 contribution room left to max out my RRSP for 2011.
- I owe about $16,000 to myself in my RRSP because I used the Home Buyers Plan, but I won’t have to start repaying until 2012.
OTHER INVESTMENTS: $3311 (-1%)
- If you’re wondering what I hold in my Other investments- check out my post long story
- I have some investments that were poor choices (I signed up for them before I became self “edumacated”) that are losing money big time. In order to receive a tax credit, I got persuaded into buying some flow through shares, Venture investments that gave out a tax credit, and some more mutual funds about four or five years ago.
- This lonely mutual fund hasn’t been moving much, unlike the rest of the market. Once I hit January 1, 2012 I’m going to take my money back and run
TFSA: $7793 (+39%)
- I bought Exchange Income Corporation, Just Energy, Keg Income Trust, and Sunlife last month. So far, my TFSA portfolio is up only about 2.5% not including the dividends.
- I JUST got my tax refund in the mail the other day of $1033 and put it straight into my TFSA (talk about will power, eh? Didn’t even stash any of it in the travel fund!)
- I signed up for a Tax Free Trading Account with Questrade and my TFSA consists 100% of stocks
- I have about$8,000 I can put back in this year to avoid the penalty from our good friends at the Canada Revenue Agency. We are allowed $5000 a year and this is year 3 of the TFSA, so one can have $15000 in their TFSA.
- My car is 11 years old and still running well. Boyfriend has been pressuring me to get a new car (is it a guy thing?) but I like my 11 year old car. Next month I have to pay insurance (boo-urns!), which costs $1500 though I get a 10 year driving discount which apparently saves me $1300, according to what my government insurance corporation says.
PRINCIPLE RESIDENCE: $387,500
- I know this it does not make any sense to divide the principle residence and mortgage debt by 50%, but since I cannot disclose my boyfriend’s financial information, I will do it this way to simplify things. Some of you may not agree to that, and I understand.
- Vancouver is an expensive city to live in, and many people predict that there will be a housing collapse, especially in a place where their is such a disparity between income and housing price. The Vancouver market was actually quite unscathed compared to the depressed housing markets elsewhere, and many people believe it is sorely due for a correction.
- We plan to live in this house for 5-10 years or even more, and we are prepared to “suck it up” if it corrects by more than 25%. Our house is in a favourable location in the city, and our neighbours have sold recently for about 30% more than what we paid for our house.
Mortgage Debt: $305075 (-1%)
- It’s an accelerated bi-weekly payment (-4 years from amortization) and we plan to add on what we get from our rental downstairs to pay the mortgage off faster. Target pay off= 15-17 years.
Credit Card: $527
- 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 basically charge everything to my card to reap the benefits (free flights and hotel stays here I come!)
- I got the SPG AMEX card for a few months already and have been using it as often as I can (compared to the MBNA travel elite card) but American Express isn’t accepted everywhere here in Canada…which is a hassle.
- BF and I got the Royal Bank Avion Infinite Card as our joint credit card (free for one year since we have a mortgage with RBC! So will be using it and letting you how I like it- I would of course never pay $170 a year for this, but since it’s free for one year, why not?)