Welcome to my monthly net worth update. As I believe accountability is one of the best motivators available, I have decided to publish my figures in an effort to accelerate my financial position.
Here is the breakdown for December 2013:
|Previous Month||Current Month||Change|
|TFSA(s)||$ 19,397.23||$ 19,780.93||1.98%|
|RRSP(s)||$ 11,684.31||$ 12,333.75||5.56%|
|Non-Reg||$ 183,003.88||$ 290,316.92||58.64%|
|Misc Assets||$ 34,000.00||$ 30,600.00||-10.00%|
|Insurance||$ 2,704.03||$ 2,927.82||8.28%|
|Cash||$ 39,500.00||$ 40,000.00||1.27%|
|Primary Residence||$ 251,000.00||$ 256,000.00||1.99%|
|Total||$ 541,289.45||$ 651,959.42||20.45%|
|Mortgage||$ 200,713.15||$ 200,265.25||-0.22%|
|Credit Card||$ -||$ -||0.00%|
|LOC||$ -||$ -||0.00%|
|Investment Loan||$ 15,000.00||$ 114,720.00||664.80%|
|Total||$ 215,713.15||$ 314,985.25||46.02%|
|Total Net Worth||$ 325,576.30||$ 336,974.17||3.50%|
December was a pretty good month. The biggest changes where to the non-registered assets as well as the investment loan columns. Towards the end of December, I took out a $100k investment loan and invested it in a dividend producing fund. the fund is a distributes a monthly tax efficient income stream that covers the principle and interest payment on the investment loan. The goal is simply to have the loan pay for itself and not cost any additional cash flow over the long-term. Any capital appreciation associated with the investment is simply bonus. The fund is around 1/3 the volatility of the “market” but has consistently met the dividend requirements (+capital appreciation) over the last decade. The management fee is also tax-deductible.
I also depreciated/appreciated some of the items on December 31. The vehicles were depreciated by 10% and the real estate appreciated by 3%. Although technically these are effective Jan 1, I wanted the figures to reflect the accounting model that I currently utilize.
Overall, 2013 was a fantastic year that had a great end. 2014 has many changes and some of those have already came into effect. I am hoping to replicate these results in 2014!