Net Worth – June 2010

Ugh, talk about a lousy time to have to take your net worth. The day after the 340 point slide on the TSX and I also just paid my property taxes which drained my savings.  Oh, well good thing I invest for the long term and I don’t panic about short term fluctuations.

Assets

House $331,200
RRSP $23,700
LIRA $10,200
TFSA $8,000
Pension $21,500
Wife’s RRSP $12,100
Wife’s Investment Account $12,100
Wife’s TFSA $7,000
My Investment Account $6,500
High Interest Savings Account $4,000

Debt
Mortgage $94,600
HELOC $0

Net Worth $341,700 (+$3,200 or +0.9% from my last update). [+ 12.2% YTD ]
Investment Net Worth $105,100 (-$5,700 or –5.1% from last update). [+ 6.5% YTD]
Mortgage is down by $26,600 or 62% of my goal for 2010.

The stock market slump of yesterday took its toll along with having to pay out my property tax for the year from savings.  The combined effect makes my investment net worth look bad this month, but I’m not worried.  I’m focusing on debt reduction for the year so I know I only need some modest growth to keep on track for my long term plans.

I continued to keep the house valuation frozen as I’m still seeing some odd pricing of housing here.  I’ve seen list pricing for somewhat similar houses vary by $40,000 so I’ll just wait a bit for the market to calm down before I update the house value.

I keep working on my mortgage goal and I’m 62% done for the year.  As I mentioned before I know I won’t get to 100% of my goal this year because of working less from July onwards, but I’m still curious how close can I get to that goal.  All in all it’s fairly nice to finally be at a five figure mortgage balance for the first time in my life.

So overall I’m happy to see that net worth number keep slowly climbing.

Any questions?

(Click to see larger version)

7 thoughts on “Net Worth – June 2010”

  1. I’m new to this blog… how old are you and what is you networth goal. Do you base your early retirement on networth or yearly income streams from your networth. One more thing what is your ROI you are targeting each year.

    thx,

    Kevin

  2. Question: What is LOC? Is it a Canadian thing?

    > All in all it’s fairly nice to finally be at a five
    > figure mortgage balance for the first time in my
    > life.

    I had one of those a decade ago… then I got married and… well, by 2004, it was time for the dreaded home upgrade.

  3. Have you considered including a future tax liability for your tax-deferred (RRSP) and taxable investment accounts? Its probably not a huge issue right now as most of you net worth is tied up in your house, but as your investments grow you will be significantly overstating your networth if you don’t consider the tax owing. It also makes it difficult to compare assets between accounts, as surely $5000 in a TFSA (after tax) is worth more than $5000 in an RRSP (income tax owing) or a non-registered account (capital gains tax owing).

  4. I feel your pain CD…I thought I was so smart plunking 50k into a dividend ETF after the “flash crash” a few months back… I’m down almost $2000 in the last couple of weeks alone. So much for that…

    My net worth did cross the million mark a few months back… problem is 650k is real estate equity which generates no income for us, while investments total about 380k… were trying really hard to increase our investment net worth. Property is nice, but unless you are renting it out (we can’t) it is sort of a bit of an albatross….

  5. @ Kevin,

    I’m in my early thirties and I don’t have a specific net worth goal. I want to have an income stream of about $27 to 30K/year and no mortgage.

    @George,

    LOC = Line of Credit, and so HELOC = Home Equity Line of Credit. I typically don’t use it, but I do have it just in case. I know about the house upgrade I used to be close to five figures and then took on another $50K of mortgage about four years ago.

    @Blain,

    I’ve considered it, but I’m not worried too much about it right now. When I get closer to pulling the pin I will likely do some more work on minimizing tax. Overall I should be able to keep the tax bill very low since the basic tax deduction for both of us (wife and I) makes up about 2/3 of my withdrawals.

    @Jon Snow,
    WOW – way to go on the million mark. I agree you need to shift some equity to cash producing investments. Have you considered moving?

    Tim

  6. Very nice!

    To avoid the property tax drain, I have a line item liability for my property taxes that I increase monthly along with my monthly allocation for property taxes. This avoids that sudden network drop on July 1 as it becomes neutral.

    Have you considered that?

  7. Adam,

    I have considered it but don’t do it. Generally as time goes on and my net worth keeps going up the affect of the property taxes will get smaller and smaller until you barely see it.

    So at best it is a short term fix, so I decided to skip it and keep things simple.

    Tim

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