Net Worth – April 2012

The following is a update on Tim’s plan to retire early.  The current metric to tracking this goal is my net worth.  This will be the last year for these posts, since once the mortgage is paid off it will cease to be useful.  At that point future updates will shift to investment net worth only in 2013.

Assets

House $368,000
RRSP $28,700
LIRA $11,400
TFSA $16,600
Pension $48,600
Wife’s RRSP $29,100
Wife’s Investment Account $12,900
Wife’s TFSA $11,200
My Investment Account $6,100
High Interest Savings Account $2,200

Total Assets $ 534,800

Debt
Mortgage $24,800
HELOC $700

Total Debt $25,500

Net Worth $509,300 (+$12,200 or +2.5%) [+ 7.6% YTD ]
Investment Net Worth $166,100 (+$2,500 or +1.5%) [+11.2% YTD]

As per usual this net worth has some good news and not so good news.  The good news was I broke the half a million net worth before my 34th birthday! I also maxed out the lump sum prepayment option last month on the mortgage for the previous year which means I paid off in lump sums $22,750 in the last 12 months (which is in addition to my regular payments).  The only problem was I actually had more cash than that to put on the mortgage than prepayment without penalty, so the line of credit got paid down instead.  The not so good news was the markets were down and so even with my contributions my assets barely moved upwards.

Any questions?

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9 thoughts on “Net Worth – April 2012”

  1. Hi Tim, just a quick question, Out of curiosity, why do you not have your TFA’s maxed out? (could be $20,000 each for 2012 +gains) Could the cash from the investment accounts/savings not be allocated under your TFSA’s and still be in the same investments? (but with tax sheltered growth) Just wondering what your take is on that… perhaps there is an angle I’m not seeing… Cheers

  2. @TheOtherDave,

    I pushed off maxing those out until after paying off the mortgage, so I likely won’t get to maxing those out until sometime in 2013. Any left over cash in 2012 will got to RRSP to reduce taxes owing. To date we have only contributed about $7500 to each TFSA account. Hope that helps.

    Tim

  3. Good numbers and congratulations!

    are you not worried about having over 70% of your networth tied up in one, immovable, stationary asset called real estate that looks like it’s hitting its peak?

    Thanks and i’m looking forward to your thoughts on this.

    DT

  4. “To date we have only contributed about $7500 to each TFSA account.”

    With an investment totaling $15k you’ve got a balance of $27.8k in TFSA’s? Yikes! What are you invested in!?! All of my self directed stocks are doing very well, the mutual funds kind of suck. My TFSA is in mutuals. 🙁

    Congrats for breaking the half mill mark!

  5. @Jacq,

    It sort of helps when your shares in Riocan REIT double in your TFSA or when I had CWA which gave me a nice 50% return before I sold it. In general, just dumb luck on the investment picks on individual stocks. That also explains why my TFSA account is so much higher than my wife’s balance. Also we tend to buy higher yield stocks which tends to compound things.

    Tim

  6. Hi Tim,

    Would you consider your yearly house Tax as part of your debts? Maybe you pay yours as part of your mortgage payment?

    Nice that you put some numbers here. I really had a different picture of this in my mind.

  7. Tim – very happy for you for lucking out. And IIRC we were both lucky indeed in 2008-9. It feels like winning a mini-lottery.

    I look forward to the time when you write a little more about investing and less about paying off that pesky mortgage. 😛

  8. @DT,

    I’m not worried at all. After all if you look at the graph I’ve already seen a spike and then decline on my house value back in 2008. But as long as I don’t see a 50%+ decline I won’t lose any of my money…just equity (which is sort of like smoke..it’s there, but not useful until you sell).

    @Paul N,

    I don’t consider property tax as a debt since it is more similar to a yearly bill. After all I don’t show what I owe for power one month out in advance. Instead I just equalize property tax with savings in the high interest account. So about mid year you will see a typical decline on that account to balance it all out.

    @Jacq,

    A mini-lottery…I like that idea. Yep, I’m looking forward to a getting that mortgage gone to. After that I’m loading up on investments on a risk system (highest risk first, lowest risk last), so next year I’m going to be obsessed with picking stocks.

    Tim

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