Net Worth – Dec 2011

Ugh, where has my year gone.  These last few months have just flown by on me.  Anyway here is my year end net worth update.

Assets

House $367,000
RRSP $27,100
LIRA $10,900
TFSA $15,300
Pension $40,500
Wife’s RRSP $27,900
Wife’s Investment Account $11,800
Wife’s TFSA $10,500
My Investment Account $6,000
High Interest Savings Account $2,100

Debt
Mortgage $42,900
HELOC $2,700

Net Worth $473,500 (+$14,500 or +3.2%) [+ 23.5% YTD ]
Investment Net Worth $149,400 (+$9,800 or +7.0%) [+17.7% YTD]
Mortgage is down by $40,600 or 104% of my goal for 2011.

The stock markets continued to be nervous over sovereign debt levels and have keep returns low for the second half of 2011, which would be a problem for most people’s net worth, but not mine.  So what the hell happened?  Simple, as you can see by my mortgage goal for the year I focused on debt reduction mainly which boosted my net worth for the year nicely regardless of the stock markets.  Of the $90,000 increase of my net worth just about half of that was from paying down my mortgage.

Overall I’m more than happy with 2011 results, which is good since my goal for 2012 is to finish paying off my mortgage which is slightly above what I managed to pull off in 2011.  As a stretch goal for 2012 I would also like to finish paying off my line of credit (HELOC) which I had previously used to put some money into investments earlier in the year when the market was down.

It’s interesting to note that after several years of concentrated effort my wife’s RRSP finally exceeds my RRSP.  We realized a while back that to split income in our early retirement years we would need to do this, so it’s nice to see that threshold reached.  In case you weren’t aware, income splitting only applies on pension income (not RRSP under 65), and since you often can’t take your pension early you need to have some spousal RRSPs to split income.

Happy New Year to you all!

Any questions?

5 thoughts on “Net Worth – Dec 2011”

  1. Housing prices took a pretty big hit here in AB the last 12-18 months or so. Glad to see that they didn’t in your neck of the woods with a paper gain of $27k in the year. I don’t know, that’s why I’m really hesitant to think about a house as a net worth component (and when I do I really lowball it and take off realtor fees and everything) since I can’t really control housing prices at all. Mind you, can’t control the stock market either!
    Great year overall, wish I could join you in the mortgage payoff but I have too much RRSP contribution room to use up. Hopefully the market stays down. 😉

  2. 2011 was the year of LBYM and savings for us. 2012 is going to be the year of attacking the mortgage. Have until April to try and pay it off or just put the screws to the bank and get a good rate (we are paying 5.7%!). I’m hoping that by showing the lenders that I do have the cash on hand to pay it off completely, I can squeeze a good deal out of them. We will see.

  3. Thanks everyone.

    @Jacq – I know the issue, I have similar feelings which I get around by discounting my house value estimate on these net worth posts by 8% to simulate the cost of selling it and a move.

    @jon_snow – Good luck with your bank. They often really don’t care about what you can do, but rather how much money they should get. Sad, but true.

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