Net Worth: November 2010
$122975 (- 4.3%)
*GASP* Yes, what you see is indeed a negative month compared to last. There's a huge reason for this…I have officially put an end to home envy (and possibly single-handedly driven myself to the other spectrum, lack-of-mortgage envy)! BF and I bought a house in Vancouver close to good schools, in a good neighbourhood, and close to shopping.
As I have found, there are TONS of costs associated with buying a house and I will share with you every nitty gritty detail later this month.
In the meantime, here's how my negative net worth this month looks.
Okay, so here’s the breakdown:
CASH: $7540 (-81%)
Yes… ouch! I took out most of my cash savings for the down payment (we put down 20% and saved some money for renovations)
- I added up my chequing and savings account (High Interest Savings Account).
- I have a new ING automatic savings account where I put away $100 a month in lieu of giving $32 a month to the pet insurance company– when they keep on denying my poor doggy's claims. ING gave $100 just for opening up an automatic savings account and funding it with $100 a month until March 2011.
- I automatically deduct money from my chequing account and have it siphoned to the HISA account (paying yourself first)
- These are stocks that captures 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 (which is about a 0% difference right now)
- I bought 50 shares of Telus as they have recently increased their dividend to $2.00/share annually and they still have a low P/E (around 13). I know that some companies are eating into this big $1.2 billion profit pie (like Mobilicity, Wind Mobile etc) but I don't really see that happening so soon yet. People have a trust in Telus (must be all that cutesy animal marketing) and I think don't mind signing on contracts for phones like the iPhone and Blackberry Torch.
- I sold my shares a gold mining company, bought at $8.98 and sold for $13.10
RRSP: $15565 (-38%)
- I took out about $9500 for the Home Buyers Plan and sold my mutual funds (getting rid of the “Other Investments” one by one!)
- I bought some bond ETF's this month with the money that was sitting there in my Questrade account
- This includes the monthly deduction from my HISA into my TD E-Series account (primarily bonds), a GIC in my ING Direct Account and my new Questrade RRSP account.
- I hope to max out the $25,000 and withdraw for my first home purchase with this amount saved with the RRSP home buyers plan (done
PENSION: $18903 (+3.2%)
- Sadly, this is the only asset that went up this month!
- How I calculated it: I took my pension statement and added my monthly contributions from my pay cheque to reflect this month's pension amount. I'm not including my employer's contributions in my pension calculation.
OTHER: $3224 (-61%)
- Got rid of most of my “other investments” and used it as a down payment- sold all the mutual funds but I still have one that I am locked into until 2012
- 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.
- These guys haven't been moving much, unlike the rest of the market. Once I break even with one of the venture funds, I'm gonna get the heck out (which is in 2012 because I'm locked in).
TFSA: $6079 (-51.0%)
- Principal protected through an HSBC fund investment (+6%) from inception (TFSA of 2009)
- For my 2010 TFSA, I signed up for a Tax Free Trading Account with Questrade and I bought lots of income trusts and am having some yummy monthly distributions roll in until they incorporate the income trusts in 2011.
- I sold most of my TFSA income trusts (all but one) and kept about $500 in the TFSA account as Questrade requires you to have a minimum of $200 in the account.
- I plan to put $15000 back in when January 2011 rolls around (slowly throughout the year, of course… or I might move my non-registered investments into the TFSA) to avoid the penalty from our good friends at the Canada Revenue Agency.
- I’m not going to bother counting the car as an asset. It’s 10 years old and I’m planning to drive it to the ground.
PRINCIPLE RESIDENCE: $387,000
- There's no way I can buy a house for $387,500 in Vancouver. So I divided price the house in two to simplify my net worth calculation. BF and I each are paying 50% of the costs of the house to make in nice and even in case we split up. Besides, BF would not want me to be disclosing his net worth with the rest of the world, either.
- Also, you will note that this amount doesn't add up to the net worth I have posted above (and neither in the networth IQ widget too)– that's because for my net worth calculation, I have decided to omit the $30K from the money my parents saved up for me to use as part of a down payment (all from compounding interest on money given to me by relatives from GIC's over a span 20-something years! Goes to show how powerful compounding interest really can be)
Mortgage Debt: $309,591
- Before anyone goes ballistic on me for taking on such a large mortgage debt (which I know you might anyway! 🙁 ) we are planning to rent the out the basement out after the renovations to help with the mortgage. This will be on top of the full amount that we pay biweekly and this will help tackle the principle beastly amount.
- The street we bought the house on has a lot of new houses being built (a good sign, of course), and a comparable house on the same street (older, but with three stories and with minor renovations) sold for over $1,000,000.
- Now I'm excited to tackle this mortgage beast and pay down my debt- might be a new focus on youngandthrifty.ca
CREDIT CARD: $838
- 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.