Net Worth Update January 2015 ($664,597.55)

By: GenXinvestor

Here is my net worth update January 2015.  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.

As I mentioned in a previous post, a new year means, among other things, a new set of financial goals for the year.  So here are the 3 big ones for 2015.

First, we want our net worth to hit $725,000 by the end of the year.  This is not quite as ambitious as last year but I think it is probably doable.  Secondly, we still want to aggressively pay off our mortgage so that we can be mortgage-free in 10 years or less.  Finally, we want to hit the $7,500 mark in dividend income.  This should be achievable if we continue to save and invest our money on a regular basis in our investment accounts and our dividend reinvestment plans (DRIPs).

Assets: $1,144,085.83 (+1%)

Home: $795,000 (0.0%)

We recently purchased our “final” family home where we expect to be for at least the next 30 years.

Cash: $4588.42

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: $104,438.90 (+1.38%)

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: $13,403.98 (+57%)

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 have finally maxed out my TFSA and my wife finally opened her self-directed TFSA.

Retirement: $192,999.40 (+3.04%)

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: $6,655.10 (+3.05%)

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: $479,488.28 (-0.1%)

Mortgage: -$479,488.28 @ 2.89%

Paying down our mortgage will be a high priority for 2015 and we expect to be mortgage-free in less than 10 years.

4 thoughts on “Net Worth Update January 2015 ($664,597.55)

  1. Roadmap2Retire

    Just discovered your blog. Nice stuff!

    I really like how focused your investments are and also the some the breakdown in different account types. Really enjoyed reading the rare coin collection page – Ive always wondered about it but something that I never looked into seriously.

    Thanks for sharing your details. Best wishes for 2015 and beyond
    R2R

    Reply
  2. canadianbudgetbinder

    Well done… I’m sure you will attain all of your goals for 2015. We paid our mortgage off last year and for now are sitting tight. It’s our first home together but likely not our last… just not in this city as houses are very expensive. how long before you retire or hope to retire? We just recently had a son and we max out the RESP as well. The $100 for now is going into a savings account but will be invested rather than saved in the account once we reach $1000. Best of luck on your 2015 Journey!!

    Reply
    1. GenXinvestor Post author

      Thanks so much for the comment Mr. CBB. I’m happy that we’ve finally settled into our final home. I’ve got about 20 years until retirement but hope to be financially free in less than 10. The RESP is a great savings vehicle! I love the government match. I’m sticking with low-cost index funds for now but may one day purchase individual stocks. I wish you all the best in 2015 and look forward to reading more of your updates as well!

      Reply

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