September 2016 Net Worth Update: $422,250 (+1.32%)

With four months to go, I surprised myself (well maybe the market surprised me) with achieving my goal a few months early.  Who knows however, the market might be a little crazy before the end of the year, maybe another crash is coming.  We are about 8-9 years since the last one so perhaps it might be time for the bears to come out of hibernation.

I have about 25% cash in my investment portfolio and all of my short term savings/ cash accounts, out of my whole cash + investment portfolio.  Ideally I would like to have 30-40% cash and be prepared to deploy the troopers (as my fiancee likes to say) when the crash comes.

This month I increased my investment portfolio compared to last month by a measly 0.3%.  Year to Date I am at 5.43%.

My goal for the end of 2016 as one of my personal finance resolutions is to reach $420,000 in net worth.  Now I just have $0 towards my goal of $420,000 by the end of the year.  With four more months to go I met this goal (yay!!!).  My long term goal is to have a net worth of one millllllion dollars by the time I reach 40.  We will see how that goes…with kids hopefully in the forecast, this plan might get derailed, but you never know!

Okay, so here’s the breakdown for September 2016: $422,250 (+$5500)

ASSETS:

September 2016 Net Worth UpdateCASH: $46, 770 (+6.5%)

  • 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: $83,500 (+0.2%)

  • Up by just a bit
  • Slowly depleting the cash in my non-registered.  Still about $20K in here.
  • These are stocks that capture the “moment in time”, including unrealized gains or losses in my BMO Investorline and Questrade accounts.

RRSP: $64,510 (+0.3%)

TFSA: $59,660 (+0.4%)

HOME: $272,000

  • I'm a little divided on what to do with my home now that I'm getting hitched soon.  I'm pretty keen on selling it or just renting it out.

CAR: $15,625

  • 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: -$288

  • This is an odd month because I'm actually OWED money from the credit card companies!  What a nice feeling.  This is because I paid the deposits for group rates for airfare and the tickets are ticketed and my deposit is returned.
  • I signed up for the Chase Marriott Visa and also have an American Express Gold Rewards Card 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: $120,090 (-0.8%)

  • I pay an extra mortgage payment a month
  • 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.

4 Comments

  1. Tito on September 13, 2016 at 12:02 pm

    Hi,

    first of all, congratulations in this achievement… it is a great feat!

    I have a couple of questions for you: is there a reason for having your assets spread in so many different products? For example, your RRSP is shared between a TD E-Series account, a GIC in an ING Direct Account and a Questrade RRSP account; or your non-registered are in a BMO Investorline and Questrade accounts. I thought simplicity was something to strive for?

    Also, your TFSA is in stocks (a whole bunch of them), and I’m assuming you have them in Questrade (based on your comments). Is there a reason why you didn’t go for ETFs? I was under the impression that, in the long run, it’s statistically highly improbable to beat the market… So why having stocks?

    Thanks!

    R.



  2. Young on September 17, 2016 at 1:33 pm

    @Tito- Thanks! Though it’s probably dipped a bit since the markets are down ha. Oh I just got rid of the GIC in the RRSP. I only have about $1000 in a BMO investor line. This was all as a result of my learning curve/ experimentation with investing. I would recommend to people that if you’re starting out, you should streamline.

    My TFSA has some ETFs in it, but my total portfolio has about 25% of stocks. It’s just the speculator/gambler in me and I find that stocks pay better dividends than ETFs.



  3. Sue on October 7, 2016 at 3:33 pm

    I’m curious as to why you haven’t included the current value (ie transfer value) of your DBPP as an asset…



  4. Young on October 8, 2016 at 11:23 am

    @Sue- Good question! I’m not sure. Think cus I’ve been doing it this way the whole way. I have it recorded for my own records. If I include the commuted value I’m at a little over $480K.



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