Net Worth – Aug 2011

Here is my bi-monthly update on my net worth, where I try to show a little hard data on the journey to early retirement.  Like all journey’s even mine has a few bumps in the road.


House $349,000
RRSP $26,100
LIRA $10,600
TFSA $13,600
Pension $35,200
Wife’s RRSP $18,500
Wife’s Investment Account $12,600
Wife’s TFSA $10,700
My Investment Account $6,100
High Interest Savings Account $800

Mortgage $54,500
HELOC $4,900

Net Worth $423,800 (-$800 or -0.2%) [+ 10.5% YTD ]
Investment Net Worth $129,300 (-$5200 or -3.9%) [+ 1.9% YTD]
Mortgage is down by $29,000 or 74% of my goal for 2011.

Talk about kicking a guy when he is done. Ouch, these stock market drops have really hit my investment net worth for the last four months.  So much so that my net worth actually drop even with all my payments to reduce my mortgage principle.

You might have noticed I have actually used my line of credit, I borrowed a some cash to pick up a few investments during the recent downturn.  Hopefully this will pay off in 2012.  In the mean time I’m at least on track to meet my mortgage payoff goal by the end of the year.  This of course leads into my big plan for 2012: make my last mortgage payment on Dec 15, 2012 and then be complete debt free!

So while the road is long, there are some bright spots on the horizon and I’m hopeful it isn’t a train that is going to run me over. *grin*

Any questions?

7 thoughts on “Net Worth – Aug 2011”

  1. Fortunately I was mostly in cash when stocks hit the skids recently, otherwise I may have also have experienced a similar hiccup in my net worth progress. I have since invested about half of my available cash savings in hopes of making some gains when (if!!!) the markets recover. We also have plans to kill our mortgage in 2012.

    For my wife and I, the best method of increasing ones net worth is the trusty LBYM lifestyle.

  2. My University Money: If he uses his LOC to purchase investments the interest on that amount should be tax deductible (basically a mini-smith manoeuvre).

    My guess is that Tim’s LOC limit is greater than $5,000 but he chose to limit his risk in case there are further down turns in the market.

  3. My University Money,

    I don’t do the long term Smith, at most I will borrow smaller sums for short periods of time. In this case I’m not even going to deduct the interest since I don’t have dedicated accounts to keep all the records separate. I just don’t have the ability to handle the risk of pulling the Smith. It’s a limit that I’m ok with.


  4. In January a friend of mine (on the advice of his financial planner) decided to take a $50,000.00 loan for investments. The idea was that instead of putting a $1,000/month towards his investments over the next four years that he would just lump sum it and then make payments on the Line of Credit instead. Needless to say the markets have been rough since then and he currently owes more on his LOC then his investment is worth. Lets hope it works out in the long-term but in the short-term he is a very worried guy right now.

  5. Hi, I just started reading your blog. First of all… thank you. I have the dream of retiring at 45 as well, and anyone I tell thinks I am CRAZY (so I don’t tell a lot of people). I have recently started doing some calculations as I have decided that I am going to make this dream happen, but I will admit, I need some more education in the matter. Here is my situation. I currently have approx 140,000 in RRSP’s, Pension (OMERS 5 yrs in), husband’s pension is approx 12,000 (horrible I know) and 3 rental properties (approx $75,000 worth of equity). In our house we have approx $80,000 worth of equity. In saying all of this, we have about $40,000worth of dept (I know). Our plan in the next few years is to get rid of all dept, rapidly pay down our mortgage and put an additional $10,000 into RRSP’s. So my question to you is at first glance what do you think? Oh I should mention that I am 33 yrs old (OK, a few months shy of 34).

  6. @Dan L

    Yes I agree with the pay down the debt part and paying down your mortgage are good places to start with your dream to retire early. As to the rest of the numbers, without some more specifics I can’t provide any input. I don’t have a clue what your are spending now or what you want to spend in retirement. Also I don’t know the details of your pension benefit or your rentals cash flow so without those numbers I can’t really say if it would work or not.

    Feel free to email me (see the About page) if you don’t feel comfortable posting it on the comment section.


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