Net Worth of 750K – Milestone Reached

Net WorthI am pleased to highlight that I managed to reach the $750K net worth target in 2013. I know I have highlighted in the past that net worth is fun but investment portfolio is what matters and I believe that. It is, however, a milestone. According to my past history, I think I could reach the 1 million dollar target in three years. It might be possible in two years but I would need help from a continuing bull market. My RRSP portfolio contributed to 50% of my growth in 2013 thanks to all my US dividend stocks.

Related: S&P Dividend Aristocrats

Net Worth Summary

I track my net worth by months just like I track my dividend income by month. The net worth obviously include the mortgage (as a negative) and all the assets including my home (as a positive). I have not increased my home value since 2002 where I used a 3 year average of my property assessment which is close to the market price. It’s down 4.8% this year reflecting the cooling down in the real estate market in my area but the value is still above the current value I have given myself. I am trying not to inflate my net worth with the market value mostly because my net worth is really not a focus unlike my portfolio value.

In 2013, my net worth grew by $105,401.32. My dividend income for 2013 contributed $6,303 to that growth. As you can see, dividend income is nice but that’s not what really moves the needle.  I contributed a total of around $34K between my dividend portfolio and defined contribution plan. I get a match from my employer too. The next big chunk comes from my mortgage payments which are accelerated. I know, in retro-spec, I should have invested rather than paying my mortgage but it’s about managing risks in a one income family. My portfolio is a paper value and could drop at any point with a market correction.

Related: Mortgage Strategies

My investments are doing good and my next target for my investments is $500K within the next 2 years. Again, the markets have a say in this to some extent although I believe I have investments that are safe but no one is immune to major corrections. The good thing is that I would look at buying more if there was a correction.

Net Worth Tracking

Dividend Snapshot
If you are not tracking yet, it’s pretty simple to do. All I do is track each of my accounts by month with a total at the bottom and all loans are negative.

  • Non-Registered Account
  • RRSP
    • RBC
    • Defined Contribution Plan
    • Spousal
  • RESP
  • TFSA
  • Mortgage
  • <any other loans or line of credit>

I don’t track my credit cards since I pay them every month. It’s pretty simple as you can see. I don’t consider my vehicles an asset but the loan is a liability. If you were to need to list all of your assets for a specific purpose, you probably would need to list vehicles, bicycles, computer and anything else with value. Home insurance would probably want to know that but you don’t need to track the value every month since you need them to live. Best thing to do is to have photograph of your home assets for insurance.

Readers: Do you track your Net Worth?

20 Responses to "Net Worth of 750K – Milestone Reached"

  1. Your system looks about the same as mine. I update on the 15th of each month and just use a simple excel sheet that automatically calculates out totals as well as month over month and year over year changes.

  2. @Dividenden-Sammler

    Thanks for the kind words!

    It does sound nice to be closer to the millionaire club 🙂 but I would rather be millionaire with more liquid assets such as my portfolio. My home value is included and represent a little more than half the net worth but we all need a place to live. I’ll target half millionaire with my portfolio next.

      1. You’re right, this is the 3rd time.

        The next one should reflect their true nature : Canadian Stock Partially Transferred DontTrustUs Company.

  3. Congrats on the net worth 3.141 (PI)
    For sure the Van housing location helps with the value.
    Personally I don’t figure my house in to any figures as you have to sell it to realize it’s value and then, as you said, you still have to live some place.
    Why are you running with three different brokers? Is it because of transaction fees?

    1. @Ricardo

      I really only have one Discount Broker and it’s RBC Direct Investing. The Transfer Agents work differently than a discount broker with no fees and partial shares. It’s a way to invest in stocks in small amounts such as $50 or $250 without any fees.

  4. Wow, that’s impressive. I’m not really sure where my NW is. Bad to say as a financial blogger eh?

    I have a good idea, I don’t track it as often as I should.

    Like you, I keep a close eye on my investments and dividend income growth. Although it doesn’t move the needle as you put it, it is a big factor (or will be at least) when I can call it quits someday.

    Great work and keep the pedal down on investing and paying down debt. No doubt you’ll have another great year of NW growth if you do!


    1. @MOA

      Thanks. I wasn’t really paying attention much either but I was getting everything setup for 2014 and noticed I was above $750K … Then I also realize that the needle has been moving by $100K a year at least.

      I constantly have the nagging question of either paying more on the mortgage or investing … Paying the mortgage has been a safety net but at a certain threshold, I may consider the smith manoeuvre.

  5. A nice milestone – let’s hope the market behaves and you are able to hold that line! I’ve been tracking net worth for over 20 years on an annual basis. I’ll generally do a mid year sanity check, but I didn’t keep that for historical records. As a couple of others suggested, I don’t include real estate in my calculation. In my case I exclude both our home and cottage, which in effect provides a greater safety net in any retirement scenario. For many years I just tracked the bottom line, looking at investments/savings, vested stock options, less loans, mortgages,… but as retirement is appearing more clearly on the horizon and I focus more attention on cash flow I’ve started tracking dividend returns and will start plotting foreward looking dividends and the growth of these payments. Currently generating about $3K/month and hope that I can build the portfolio combined with dividend increases to move that up to $3.5-$4k/month by year end.

  6. I have been tracking my net worth for a little over 3 years. I find it very informative.
    * Home is up 1.1%.
    * Total assests are up 21.7%
    * Debt is down 34.6%.
    * Net worth up by 43.25% and I hope to hit the 1mil mark by April. Unfortunately my home accounts for 60% of my NW.

    PS. I do track my credit card balances as I don’t pay at the same time each month and it can account for a huge swing in my numbers.

  7. Great job; I’ve been following you for a while and after really buckling down last year and getting my numbers in order, I’m realizing about $4,500/year in dividend returns (primarily US-based but slowly changing my investment strategy to include more Canadian equities.

    I’m trying to balance between paying down the mortgage and investing as well; after switching halfway through the year last year from DRIP to just straight cash payouts, I’m now using my dividend payments to max out my RRSP contributions (and reinvesting within the RRSP shelter) to realize my maximum return on taxes (which will also get reinvested).

    Do you have any advice on how I can move my non-sheltered investments into my RRSPs? I’ve heard if you do an in-kind transfer of sorts, you don’t necessarily have to sell-buy but I haven’t seen much about this.

  8. Fantastic performance there PIE, been reading up on your first blog posts till now, 5 yrs..and naysayers always think it’s impossible. Keep up the great work, look forward to seeing that 1million$ appear soon!



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