Net Worth Update August 2014 : $646,182.38 (+1.90%)

By: GenXinvestor

Net Worth Calculation

Here is my net worth update August 2014.  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.

My family has 3 major financial goals for 2014.  Firstly, we want our net worth to hit the $700,000 mark by the end of the year.  This may seem ambitious but I think it is within our reach if we continue to diligently save and invest as we have in the past.  Secondly, we want to aggressively pay off our mortgage so that we can be mortgage-free in 2015.  Finally, we want to hit the $4,000 mark in dividend income.  This should be achievable if we deploy the cash that is building in our investment accounts and through regular contributions to our dividend reinvestment plans (DRIPs).

Assets: $754,356.86 (+1.02%)

Home: $425,000 (0.0%)

We have lived in our home for over 10 years now and have built up a significant amount of equity in that time.  We plan to be mortgage free in early 2015!

Cash: $1,734.92 (-17.78%)

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 investing it.  That said, I do keep some cash on hand in my investment accounts in case any market opportunities arise.

Non-Registered Investment Accounts: $108,590.98 (+2.82%)

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.

TFSA: $9,848.61 (-11.30%)

In the TFSA I like to hold growth assets, such as low-cost ETFs, TD e-series index funds or Canadian dividend paying stocks.  I plan to max out my TFSA in 2015 after having recently withdrawn a large sum to pay for a new vehicle (that does not appear on my net worth statement).  Also, my wife has not yet opened a self-directed TFSA.  This is on the to-do list for 2015 once our mortgage is paid off.

Retirement: $176,300.58 (+3.59%)

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: $5,881.77 (+2.84%)

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 $100 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 (0.0%)

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: $108,174.48 (-3.92%)

Mortgage: -$44,925.48 @ 3.14% (-8.96%)

Aggressively paying down our mortgage is a high priority for 2014 and we expect to be mortgage-free in early 2015.

Home Equity Line of Credit (HELOC): -$63,249 @ 3.50% (0.0%)

I borrow money to invest in Canadian companies that pay eligible dividends in one of our investment accounts.

2 thoughts on “Net Worth Update August 2014 : $646,182.38 (+1.90%)

  1. canadianbudgetbinder

    Well done. I don’t think it’s impossible to reach your goal for the year. I’d love for us to hit the $700k mark as well but we are doing lots of renos and have other surprises on the way 🙂 Interesting how you put the $100 back into the RESP which is a great way to maximize the money. Most people would simply spend it but of course if they need to there might not be any other options. Keep up the great work~ I’ll be posting our Net Worth up next Monday. It’s fun to see the numbers when the mortgage is gone but it also means we still need to be smart with our money. Have a great weekend.

    1. GenXinvestor Post author

      Thanks Mr. CBB! I think hitting the 700k will be a challenge, but we’ll see. I look forward to seeing your next NW update. I think it can be challenge for people to stay disciplined and invest their money once the mortgage is paid off. But if you have developed good savings and investing habits, then I’m sure you’ll succeed. Thanks for stopping by and have a great weekend!


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