Net worth update – June 2017

This is my fifth net-worth updates report for the year 2017. For those new to my finance journey, net worth update is a simple report I post every month which tracks the progress of my journey to reach my financial goals.

My ultimate financial goal is to become a self-made millionaire by December 2024 (10 year plan) by saving and investing in stable dividend paying blue-chip companies.

I am posting all my financial information in this website because I love to inspire and motivate people to start their own journey to reach their financial freedom.

You could learn from my successes and failures (experience) and improve your financial IQ.

Along the way, I make financial mistakes and will share my experience here with you. So, you could learn something, avoid those mistakes and save money.

Also, I like to publicly track my progress and get valuable advice from like-minded people.

In May 2017, my net worth increased by $2400 (+1.35%), thankfully, I received three paychecks from my day job. Twice a year, we receive three paychecks instead of two. For those who receive bi-weekly salary know this.

In May 2017, Toronto market was down a bit and my dividend portfolios ended without any gain; however, the third paycheck from my day-job helped me to post a decent gain for the month despite the some travel and car maintenance expenses.

Last month, my assets value gained by $3100 mostly due to the stock purchased and pension contributions.

I joined my employer pension plan in July 2015, and I contributed over $12000 to the plan since then.

I keep posting whatever the amount I contributed to the pension in my net worth updates, and I didn’t pay much attention to my DB plan details.

But, a reader brought to my attention about a hidden value in my pension plan and explained me how to value a DB plan.

I really thank Bob Lin for his detailed explanation.

I quickly logged into my pension administration website and noticed that my transfer value was over $31 000, which was $20K more than I post in my net worth.

But, I am unable to find the details about Commuted Value (CV). I think this will come in my annual pension plan statement.

I remember I received the annual statement last year, but I did not pay attention to the details (also I lost the papers). I believe I will get this year statement in October or November.

Hopefully, I will have a huge bump in my net-worth once I received the annual statement from my pension administration.

Thank you once again Bob for unlocking the hidden value.

Now I feel bad I didn’t contribute to my plan for first few years, but (luckily) I could purchase back the previous services for a lump sum payment. I will seriously consider do this in year 2018. It is like buy $2 for $1. I don’t want to miss it.

If you have a pension plan in your work and if you don’t participate, then you should seriously consider to take advantage of it.

Now let’s talk about my net worth and financial details in numbers

Last month, my net worth increased by $2400 or +1.35% from my last update.

Net worth update as of May 31, 2017 (+1.35%)

Assets: $504 300 (+$3100)

• Cash: $900 (-$400)


• Home: $275 000 (no change) – Yearly adjustment with average inflation rate of 2%


• Canadian Stocks: :174 300 ( +$2500)


• U.S. Stocks:$41 900 (+$200)


• Employer’s Pension Plan: $12 200(+$800)

Liabilities:$325 300 (+$700)

• Mortgage :$181 000 (-$600)


• Student loan: $23 400 (-$200)


• Margin loan:$57 200 (+$1900)


• Credit card 1:$8000 (-$100) (low interest credit card – 0.99% special rate for 10 months – will be expired in September 2017)


• Credit card 2:$23 800 (-$100) (low interest credit card – 1.99% special rate for 12 months – will be expired in March 2018)


• Credit card 2:$11 800 (-$200) (low interest credit card – 0.99% special rate for 12 months – will be expired in March 2018)


• Line of Credit 4: $0 (paid-off )


• Credit card 5: $3000 (no change) – (low interest credit card – 1.99% special rate for 10 months – will be expired in November 2017)


• Credit card 6:$0 (paid-off – -$600 ) – (regular expenses)- high interest rate of 19.99%.


• Line of Credit 1 :$12 000 (+$1000) – (low interest credit card – 2.99% special rate for 12 months – will be expired in February 2018)


• HELOC:$5100 (-$400) – (low interest of 3.20% – prime + 0.5%)

Net worth :$179 000 (+$2400) as of May 31, 2017

My net worth up by +1.35% since my last update.

Note

• all amounts are rounded to the nearest $100;
• all numbers are in CAD; and
• Conversion rate 1.00 USD = 1.325 CAD

I really excited to see these numbers as my total assets value is getting close to half a million dollar 😀

I have a huge credit card debts because I take advantage of low balance transfer promotion rate and invest in high quality dividend stocks. Learn, earn, save,invest and leverage your skills are the keys to become wealth.

Thank you so much for being in my finance journey and for your support.

ADVERTISEMENT