January 2017 Net Worth Update $452,500 (+13%)

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)

ASSETS:

January 2017 Net Worth Update
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)

Non-Registered: $83,380(-3.7%)

  • 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%)

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!

HOME: $272,000

  • 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

LIABILITIES:

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).

8 Comments

  1. Joe on January 22, 2017 at 10:15 am

    Thanks for the breakdown. Since you’re being so open about your finances, how about giving us an idea how much money you take home each month? Cause man, you seem to have way more cash in hand than the average Joe. Do these numbers include your partner’s income and assets as well?



  2. Roger on January 22, 2017 at 12:40 pm

    Enjoying the tips. This may be one back. Hi interest savings for cash? My TD hi interest savings currently 0.5 so I transferred to Alterna bank, e account, getting 1.95 and not a temp rate to get you over. Also oaken financial savings rate 1.5%, both covered by CDIC.



  3. Jaymee @ Smart Woman on January 24, 2017 at 2:49 am

    What’s the reason you don’t include your pension into your net-worth calculations? I’m asking because I’m still unclear how my pension should fit into my retirement plan – I contribute a percentage of my income and my employer matches that contribution. Should I only consider my portion if I’m including this into my net-worth calculation?



  4. Young on January 25, 2017 at 6:44 pm

    @Roger- Cool never heard of Alterna bank. I currently have it in a 1% (I believe, last checked).



  5. Young on January 25, 2017 at 6:51 pm

    @Jaymee- Yes, I usually just include my pension contribution (plus interest). I think it would be good to do so since your pension contribution is deducted from your paycheque. That does not reflect the value of the pension because for a lot of DB pension you get a set payout per month (and usually its the 5 year highest income they take) after age 55 or 65. Everyone does their NW calculations different, some people decrease their RRSP amount because it’s considered tax deferred and not tax sheltered. I guess that main thing is to keep it consistent.



  6. Young on January 25, 2017 at 6:54 pm

    @Joe- My income is <$100K annually. Nope, doesn't include my husband's income and assets.



  7. APF Blogger on February 20, 2017 at 7:56 pm

    Hi, Young. Thanks for sharing your progress in growing your net worth. You mentioned you normally put an additional $20k towards your mortgage but you might not this year. What are you planning to do with all of that cash? Seems to me that you could put $20k towards mortgage and still have a lot of liquidity.



  8. Young on February 21, 2017 at 12:36 am

    @APF Blogger- There are a few reasons, one being, there’s a little one on the way and I’ll have to save up for when the income gets hit on parental leave 🙂



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