Net Worth – Oct 2010

It is amazing how the markets direct these updates now.  When the market is up I do better and when they fall it seems to flat line any progress.  Anyway, on to the numbers.


House $340,000
RRSP $26,000
LIRA $10,800
TFSA $9,700
Pension $26,000
Wife’s RRSP $14,800
Wife’s Investment Account $12,100
Wife’s TFSA $7,800
My Investment Account $6,100
High Interest Savings Account $4,000

Mortgage $86,900

Net Worth $370,000 (+$16,000 or +4.5%) [+ 21.5% YTD ]
Investment Net Worth $116,900 (+$10,300 or +9.6%) [+ 18.4% YTD]
Mortgage is down by $34,300 or 79% of my goal for 2010.

I’m in the last part of the year now and overall I’m pleased with the progress on my net worth this year.  Over the next few months you should see some extra jumps in the investment net worth as I pile on the RRSP contributions to reduce my tax bill.

I keep working on my mortgage goal even when I know I won’t hit it this year.  I took a reduction of hours at work which made making the goal impossible.  There won’t be much progress on this goal for the rest of the year, but it looks like I should break the 80% barrier at least.

Any questions?

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10 thoughts on “Net Worth – Oct 2010”

  1. What percent (and $ amount) are you saving from your after-tax salary?

    What is the asset allocation of your investments?

  2. Markets don’t nearly affect our net worth as much as living below our means does… that’s a guaranteed 5k per month in the bank. Its very comforting in that its something that WE can control – as opposed to the whims of the stock market….

  3. Perry,

    Good question. I’ll have to do a little math and get back to you. I assume you want a yearly average, correct?

    Asset allocation – did you want that as the overall accounts or broken down per account?


    Like all good people, because I’m lazy. Or perhaps the real reason is I haven’t made up my mind to start pouring money into GIC yet and I’m saving my contribution room to shelter that high tax income versus the current dividend paying stocks I have left in our investment accounts. Take your pick on the reason.


    I hope to shift over to that in a few more years. In the mean time I have found you are correct. Large amounts of cash to the mortgage has been a steady increase to the bottom line.




  4. Tim,
    Yearly average of your savings would be interesting. From your charts it seems like that is the major contributor to your networth increases. Also I was curious about the aggressiveness of your investments overall. Feel free to decline if these requests are too personal for the blog.

  5. Perry,

    So for the delay on the response. I’ve been a little busy lately.

    I’m not sure the exact number from year to year, but I’ll do an estimate. Including pension, RRSP, mortgage payments, lump sum mortgage payments, and general savings in total I would say about $50,000/year or over 60% of my after tax income. Now if you want to strip out a more regular type of mortgage payment you would drop that amount by about $8400/year and drop the saving rate to about 50%.

    Investments are structured in a core/satellite approach. The RRSPs are all index based and broken down to 30% bond index with the remaining 70% split between Canada, US and international indexes. My pension fund is 35% fixed income, 40% foreign equity, 20% Canadian equity and 5% real estate. Those are the core parts.

    The TFSAs and investments accounts are individual stocks which are limited in size to prevent screwing up too badly. Stocks are based on good yields and repeat core business. So examples include a power company, telecom, REIT, a bank (BMO), booze and a income trust that provides some oil & gas and other sectors that I don’t have enough cash to buy into directly yet.

    I hope that helps.


  6. Dont take this as advice! Just an opinion!

    I guit rrsp contributions years ago. In fact I cashed in $25k about 10 years ago, paid the taxes and then made a down payment on a rental house. Then rather than buy more rrsps, I used money to pay down mortgages.

    Seemed to be a far better investment. I wonder if that would work in todays housing market?

    RRSPS are obviously just a deferred tax but unless your retirement income is FAR below your working income, there is a minimal difference. Of course if you invest the refund, you might make some gains.

    Deferring and accumulating RRSP contributions also leaves you room if you ever have a windfall earnings year. Then it probably is a good time to use them because that tax year will likely have much higher income than your retirment years.

    Just an opinion. Curios about your thoughts on this?

  7. Mike,

    RRSP are not required for everyone. If your income pre/post retirement will be the same it does make sense to explore other options first like a TFSA account. In your specific case it depends on what objectives you want to do with your money and what you feel comfortable with. I know I personally won’t invest in housing in Vancouver or Toronto right now since both places are still over valued.

    Hope that helps,

  8. Just for discussions sake.

    My pre-retirement income from my job (6 years ago) was $75000. Which has a tax rate of 35%

    My post retirement income (from my pension plan) is about $50000. Which has a tax rate of 35%.

    At least in my case there was no tax advantage for RRSPs. Of course the true value would have been in investing the refund from RRSP contributions

    If someone making $75,000/yr contributes their full 18% to rrsps, they will recieve a refund of approx $4700.

    If this is invested in a tfsa, it is a great idea. There were no tfsa’s when I was working so I would have needed to pay tax on any gains from my $4700 investment so again, very minimal gains.

    I often think RRSPs are too often considered no-brainers but really, unless you invest the refund in a tfsa, I dont see great value in them.

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