Net Worth Update December 2013 (+3.5%) (+80.8% for 2013)

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
Assets        
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%
         
Liabilities        
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!

Net Worth Update November 2013 (+37.01)

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 November 2013:

    Previous Month Current Month Change
Assets        
TFSA(s)    $       19,154.81  $        19,397.23 1.27%
RRSP(s)    $         10,926.95  $        11,684.31 6.93%
Non-Reg    $         97,796.75  $     183,003.88 87.13%
Misc Assets    $         34,000.00  $        34,000.00 0.00%
Insurance    $           2,506.09  $          2,704.03 7.90%
Cash    $         38,400.00  $        39,500.00 2.86%
Primary Residence    $       251,000.00  $     251,000.00 0.00%
Total    $       453,784.60  $     541,289.45 19.28%
         
Liabilities        
Mortgage    $       201,161.05  $     200,713.15 -0.22%
Credit Card    $                      -   $                      - 0.00%
LOC    $                      -   $                     - 0.00%
Investment Loan    $        15,000.00  $       15,000.00 0.00%
Total    $      216,161.05  $     215,713.15 -0.21%
         
Total Net Worth    $      237,623.55  $     325,576.30 37.01%

Wow. What a month!

Well actually, the numbers are a little misleading. They are all accurate but some of the valuations only occur a few times a year. For example, the large increase in non-registered investments is due to NPV valuation of a guaranteed monthly payment stream. The discount rate of 11% was used so this valuation should be conservative. Other assets that would will have a new valuation is the MISC assets as well as our primary residence. Included in the MISC are our vehicles. Typically these would be depreciated in January but a recent hail claim on both vehicles resulted in new paint jobs that should actually increase their value as well as some new tires as well. Our home will also be adjusted but I suspect that it will stay similar in value.

Other than this, we are seeing some solid gains in the investment accounts and the debt levels are maintaining or at least decreasing slightly. As I mentioned in a previous post, we are not paying down the debts at a more accelerated rate as we have uses for our idle cash over the next month or two. This includes two new opportunities to accelerate the wealth accumulation so stay tuned ;)

Net Worth Update October 2013 (+5.3%)

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 October 2013:

Previous Month Current Month Change
Assets
TFSA(s)  $        18,561.33  $       19,154.81 3.20%
RRSP(s)  $         10,364.70  $       10,926.95 5.42%
Non-Reg  $         97,365.93  $        97,796.75 0.44%
Misc Assets  $         34,000.00  $        34,000.00 0.00%
Insurance  $           2,484.85  $          2,506.09 0.85%
Cash  $         28,500.00  $        38,400.00 34.74%
Primary Residence    $      251,000.00  $     251,000.00 0.00%
Total  $      442,276.81  $     453,784.60 2.60%
Liabilities
Mortgage  $      201,608.95  $     201,161.05 -0.22%
Credit Card  $                       -  $                      - 0.00%
LOC ($20,000)  $                       -  $                      - 0.00%
Investment Loan    $         15,000.00  $        15,000.00 0.00%
Total  $      216,608.95  $     216,161.05 -0.21%
Total Net Worth  $      225,667.86  $     237,623.55 5.30%

Another good month of positive numbers.

We are still holding a significant amount of cash due to the new home build. I don’t feel we actually need this much on hand so we will be doing something with some of this cash. The investments are doing fine and we continue to contribute monthly to our RRSPs and one of the TFSAs.

Our liabilities are decreasing incrementally but we will not be accelerating repayment of either of these. Currently, the rates are still extremely low and I believe I can get exponentially more upside  potential elsewhere.

In another two months, I will make adjustments to my primary residence, non reg, and misc accounts. These changes are made annually or when new information is received about these things. Currently, there are portions of these accounts that are only value periodically.