Net Worth – April 2011

Well this month I hit an interesting milestone.  I managed to max out our lump sum prepayment option on our mortgage for the 12 months.  Which in practical terms means we put on almost $23,000 in lump sum payments in the last 12 months in addition to our regular payments.  No wonder the mortgage balance is dropping like a stone.


House $349,000
RRSP $28,100
LIRA $11,600
TFSA $11,200
Pension $35,000
Wife’s RRSP $20,200
Wife’s Investment Account $12,800
Wife’s TFSA $8,800
My Investment Account $6,600
High Interest Savings Account $5,600

Mortgage $68,000

Net Worth $420,900 (+$19,300 or +4.8%) [+ 9.8% YTD ]
Investment Net Worth $139,900 (+$1700 or +1.2%) [+ 10.2% YTD]
Mortgage is down by $15,500 or 40% of my goal for 2011.

So with the housing market finally kicking back into gear I was able to get a few similar listings to finally update my house value this month.  I had been avoiding the update for a while since I really didn’t have more than a listing or perhaps two that were similar so it was tough to get an estimated market value.

My investment net worth was very stable over the time frame, while I did make minor contributions to it over the last two months, the markets also decreased a bit which offset most of the increase.  Oh, well that happens when you have a a fair amount of equity exposure.

I did notice one interesting fact while I was calculating our combined TFSA balance, which now stands at $20,000.  Not too bad given we only put in $10,000 so far…so a 100% gain in just a few years looks impressive as hell until you realize it was mainly just dumb luck that those stocks have done well and the stocks had fairly high yields when we bought them (AQN.TO, EIT.UN.TO, REI.UN.TO).

Any questions?

4 thoughts on “Net Worth – April 2011”

  1. Just one question – can you pick my TFSA investments for me? 🙂
    I was happy with my 25% return until I saw yours. Just kidding – good for you for picking winners Tim.

    Oh, another question – have you ever figured out the difference between where you’d be at if you would have put your excess mortgage contributions into the stock market in the last 2-3 years vs. paying down the mortgage? I think I’d see a difference of about 15% in the last 2 1/2 years (each year, probably more in ’08-’09).

    Also – at what point are you going to be maximally contributing to your RRSP? You must have a ton of contribution room available.

  2. @Jacq,

    I have never determined how much further ahead I might be with going to dump all of our savings into the market rather than paying down the mortgage. I personally feel it becomes a waste of time. I know I have given up some returns, but I don’t need to know the exact number. The decision was made years ago to kill the mortgage at the expense of some growth. I want the future flexibility more than I want the immediate returns.

    I have been maxing or close to maxing my RRSP’s for years now. The only extra contribution room I have was from a pension adjustment a few years back (~$30K) of contribution room, which I have been consuming a bit lately. Even when you add in the extra TFSA room we have I will only have about 3 years (post mortgage paid off) before I will be completely maxed out everything.


  3. Tim –

    Many years back we paid our mortgage off before we were anywhere near our savings/investment goals. You are so right about the flexibility a paid-for house provides because a mortgage payment is non-negotiable, fixed obligation. And a paid-for house feels priceless. I know!

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