Net Worth – Apr 2010

A caution on this net worth post.  When I make my comparison I always use the last update number, but in this case I’m referring to my Feb update, not the mini update I did with the cross over post.  So all increases are from the Feb to April period.


House $331,200
RRSP $24,600
LIRA $10,600
TFSA $8,300
Pension $20,900
Wife’s RRSP $12,500
Wife’s Investment Account $12,900
Wife’s TFSA $7,300
My Investment Account $6,700
High Interest Savings Account $7,000

Mortgage $103,500

Therefore my net worth now stands at $338,500 for the end of April 2010. That is an increase of $15,700 or 4.9% from my last update.  Of that my investment net worth was $110,800 which was an increase of $6,800 or 6.5%.  Mortgage is down by $17,700 or 41% of my goal for 2010.

So a few general notes about all of this.  As I touched on yesterday I’ve frozen my house value in these updates until the housing market calms down a bit.  I’m concerned about getting another bubble effect in my net worth (see graphs for when it happened in 2008). In the mean time the equity markets continue to give me a steady return.  Not huge like some of the 2009 updates, but I can live with steady.

I keep trucking along on my mortgage goal and I’m 41% done already for the year.  Yet I’ve hit a bit of a brick wall on that one.  I’m almost out of prepayment room until my renewal date hits in May or June (I can’t recall which).  As such I might get a bit of money sitting in savings in the next update waiting to hit the mortgage.  It’s interesting to note that would mean I’ve paid off in total almost 15% of my original mortgage amount in a single year with prepayments (in addition to regular payments).  It’s really amazing what you can get done when you put your mind to it.

Any questions?

canadian_dreams_net_worth_apr_2010canadian_dreams_investments_apr 2010

10 thoughts on “Net Worth – Apr 2010”

  1. Based on your comment that the first $100,000 of investments is the hardest, how did you decide to put money in savings waiting to pre-pay the mortgage, rather than prepaying your RRSP or making TFSA contributions? Part of my thinking is: if you’ve made 6.5% on investments over 3-4 months, that’s a better return than reducing the interest on the mortgage.

  2. Robert,

    I’m aware of the phrase “that past performance isn’t indicative of future results” for my investments. So I’m a bit leery of just dumping the money into the RRSP’s. Yet you do have a point. I could just time shift those RRSP contributions that I was planning to do at the end of the year to now and just make up the mortgage pay down later. That’s something to think about.


    Actually I don’t have a specific net worth goal tied to my retire at 45 goal. Rather I want about $600K to $700K in investments and my mortgage paid off. I would guess that would translate to a $1 million net worth or so.


  3. For many years I was convinced that paying off debt was the first leg of reaching financial independence. I seem to recall seeing some good arguments for paying off debt first before saving. Driven perhaps mostly by the after-tax considerations.

    One exception to this rule may be to have an emergency fund. I guess this could be handled by alternatively having a line of credit type loan in place on the home’s equity so that one can keep the majority of savings earning higher rates.

    The bank mortgage rules limit the amounts of early payments that can be made so this is a limitation on it all.

    Have the new income tax rules (pension splitting) and the introduction of TFSAs made RRSP, at least theoretically, obsolete? One advantage to RRSP investments may be that the payment of tax on withdrawal discourages before retirement withdrawals. Not the case with a TFSA.

    Mortgage rates are most likely higher than the other two and the return is already in after-tax dollars. A mute point if the mortgage is mostly locked in.

  4. I don’t really see the bubble in 2008. If it’s there it doesn’t seem like much to worry about.

    Great job on the mortgage repayment! How much longer until its paid off?

  5. I’m glad IDK asked the question whether or not you had a specific net worth “goal”. After reading your post, I was wondering the same thing. Thanks for the motivation and keep up the great work!

    Rudy @

  6. Just a question, if you don’t mind.

    I have just separated from my husband after 25 years of being a stay at home mom. I will be getting a settlement from him – my question is what to do with it?

    Few facts – I am 45 and now have a job but it is only 25 000/year. I will receive spousal support of approx. 2000/mth)
    I have a mtg on a house of 140 000.
    I will be receiving approx. 150 000

    Question is – do I take that money and pay off the mtg and have no savings or put aside for when i am older?

    Any suggestions would be great

  7. confused,

    Ugh, that is a loaded question. The answer depends on a lot of different things (most of which I won’t know from your limited comment). If your regular spending (minus your mortgage payment) is affordable on your job you might want to consider paying off the mortgage (I’m a little confused are you getting both the spousal support and the lump sum?). Granted you won’t have much of a capacity to save for retirement, but if you work until you are 65 you can collect Old Age Security, the Guaranteed Income Supplement and some Canada Pension Plan for a modest retirement. It won’t be much, but you won’t be too bad off if you stay out of debt after paying off the house.

    Yet on the other hand having some savings around could be useful in case of a rainy day. Perhaps another idea would be to pay off most of the mortgage say $100K and save the rest for an emergency fund. I know I sleep better with some savings in the bank. Given the current cheap interest rates you can likely pay off the rest of the mortgage in a few years.

    So sorry there isn’t a wrong or right answer. It all depends on what you want and what you emotionally need. Don’t under estimate your emotional attachment to money. Sleeping well at night is worth a lot so do what works best for you. I hope I gave you a few ideas.


  8. You list your house as part of your net worth, but seriously how would you realize that value? If you sell, you need to deduct real estate, lawyer, any taxes.. and then you have to live somewhere.

    I think people need to be conscious of not over inflating their net worth. Many equities have a price for realization into cash, including stocks, mutual funds and real estate…

    I’m not averse to your simple calculation but everyone planning for retirement ought to know what their equity truly represents and if they could cash it out in any practical sense.

    If you’re selling an expensive home, are you buying a less expensive one? The difference, less expenses, gives a truer picture of what you’re facing.

  9. Glenn,

    The house value is discounted by 8% to simulate a quick sale and the loss of fees. So yes I’ve covered that. Also the only reason the house value is included in these statements is I’m still paying off the mortgage. Once that is complete I will drop both the mortgage and the house value from these updates.


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