June 2016 Net Worth Update $817,018

By: GenXinvestor

Here is my June 2016 net worth update.  As I’ve said before, I like to track my family’s progress through monthly net worth updates.  To calculate our net worth, I add up all of our household assets and subtract any outstanding liabilities (ie. debt owing).  The result is simply a snapshot of what my family is worth at a particular moment in time and does not give any of the relevant details as to how or why we reached that point.  For that kind of information, please refer to our dividend income and monthly highlights section.

June 2016 net worth updateIn a previous post, I laid out a variety of financial goals for 2016.  My focus for the year however, will be on achieving 3 major goals.  First, we want to pay down the HELOC as quickly as possible.  This debt is a drag on our financial plan so it is the big priority for this year.  I’m happy to report that we finally paid this off!

Secondly, we want our net worth to hit $800,000 by the end of the year.  I’m happy to report that we achieved this already.  I’m going to have to revise the Net Worth goal upwards.

Finally, we still want to aggressively pay off our mortgage so that we can be mortgage-free in 10 years or less.  To this end, we plan to pay off at least an extra $10k this year in the form of lump sum payments.  We need to get on this ASAP.

Assets: $1,516,154.73 (+10.49%) 

Home: $815,000 (0%)

In December 2014, we purchased our “final” family home where we expect to be for at least the next 30 years.

Rental Properties: $290,000 (0%)

In 2015, we purchased our first rental property and have since added a second.

Cash: $4,076.42

As a matter of habit, I rarely keep a lot of cash on hand in a savings account.  The reason being is that at today’s record low interest rates I’d rather put the money toward paying off my mortgage faster or invest it.  That said, I do keep some cash on hand in my investment accounts in case any market opportunities arise.

Non-Registered Investment Accounts: $39,503.04 (+8.5%)

Our non-registered investment accounts include DRIP accounts with Computershare and Canadian Stock Transfer, a discount brokerage account and a work savings plan.  For the most part, in these accounts, I prefer to hold Canadian companies that pay eligible dividends.  The decrease in this account is a result of moving non-registered stocks into our TFSAs.

TFSA: $92,925.95 (+1.8%)

In the TFSA I like to hold growth assets, such as low-cost ETFs, TD e-series index funds or Canadian dividend paying stocks.

Retirement: $234,468.80 (+3.45%)

Our retirement accounts consist of RRSPs, a small locked-in retirement account (LIRA) from a previous employer and a company defined contribution pension plan.  The RRSPs and LIRA hold low-cost TD e-series index funds and other low-cost ETFs, while the company pension plan is invested in a low-cost target date fund.

RESP: $13,180.52 (+2.7%)

In the RESP we hold low-cost TD e-series index funds.  We contribute the annual amount of $2,500 so we can get the 20% match from the government.  Our strategy for contributing is to use the money we receive each month from the universal child care tax credit and make up the difference at the beginning of each year.  This ensures that we receive the maximum government contribution of $500.

Other: $27,000 

Under the “other” category, I include an extensive coin and paper money collection.  For years I collected rare gold and silver Canadian coins and Canadian paper money.  The collection has a face value of $10,000 so I conservatively estimate the collection’s worth at around $27,000.  For the purpose of my net worth calculations, I’ve been keeping this number constant versus increasing it over time because (a) coins and paper currency can be difficult to accurately appraise as they are subject to changing market trends and (b) can become illiquid if you can’t find a buyer for them.

Liabilities: -$699,136.23

The only debt we now carry that is not tax deductible is the mortgage on our primary residence.  This is a priority to pay off so we can get out of debt!

Mortgage: -$459,332.55 @ 2.89%

Paying down our mortgage will be a high priority for 2016 and we expect to be mortgage-free in less than 10 years.

Rental Property 1 Mortgage: -107,166.82 @2.62%

Rental Property 2 Mortgage: -103,900.00 @2.54%

We added mortgage debt with our rental properties.  The mortgage interest is tax deductible so we won’t prioritize paying off these mortgages.

HELOC: $28,997.70 @ 3.35%

I used the HELOC for a downpayment on a rental property.  The interest is tax deductible so I’m fine with carrying this debt for a while.

Image Credit: Image courtesy of hywards/FreeDigitalPhotos.net

2 thoughts on “June 2016 Net Worth Update $817,018

  1. BeSmartRich

    Huge congrats on achieving your $800K mark. My goal is to achieve $200K in 2016 but I think I am getting really close or already achieved this month. Great job to both of us!


    1. GenXinvestor Post author

      Thanks BSR. The markets have really lifted our net worth this year. That’s why it pays to stay invested!


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