Comments on: April 2009 Net Worth Update: Bull Market? (+4.12%)

By: FrugalTrader

FrugalTrader — Tue, 05 May 2009 22:41:43 +0000

Mockingbird, I figure instead of worrying about what kind of rate we can get upon renewal, we decided that we’ll avoid all that by paying it off completely before the term is up.

By: Mockingbird

Mockingbird — Tue, 05 May 2009 22:32:44 +0000

Well done, FT!!
Is paying off mortgage early a part of your inflation measure??

By: Ms Save Money

Ms Save Money — Tue, 05 May 2009 20:47:11 +0000

That’s pretty cool how you broke down the assets and liabilities. You know technically you can just pay off your mortgage already.

By: FrugalTrader

FrugalTrader — Sun, 03 May 2009 14:30:45 +0000

Technically, the capital put into an RESP can be withdrawn tax free when it comes time for tuition and the growth/grants taxed in the childs hands. Therefore, I could count our contributions to date, however, I’m leaving it out of our net worth b/c all of the money will go towards our kids tuition when the time comes. Thus far, we have about $5k contributed and $1k from government grants.

By: Georumble

Georumble — Sun, 03 May 2009 14:01:03 +0000

FT, would you include RESP in your networth?

By: FrugalTrader

FrugalTrader — Sun, 03 May 2009 13:41:49 +0000

Georumble, yes that is the cap gains tax we will owe (tax yr 2009) for selliing our rental prop.

By: Georumble

Georumble — Sun, 03 May 2009 13:29:23 +0000

FT, I am working on my Net Worth statement and wanted to find out what do you mean by is TAX LIABILITY?

Are these the taxes you owe to CRA?

By: cannon_fodder

cannon_fodder — Sat, 02 May 2009 13:51:42 +0000

Victor/FT,

I think other EFTs such as the ProShares Bear and Bull that are 2x leveraged also would not qualify because they use derivatives to track the index and they explicitly state that they will not pay out dividends because they don’t purchase the underlying stocks.

By: cannon_fodder

cannon_fodder — Sat, 02 May 2009 13:50:15 +0000

MikeM,

Thanks for that link. I’ll check out my CPP contributions since I can’t remember the last time the government sent me a hard copy.

By: Phinance

Phinance — Fri, 01 May 2009 23:10:30 +0000

Hopefully this bull market will continue up. Next month will probably see the announcement of a GM bankruptcy, which a lot of analysts believe is already priced in. I say if we can hold onto this current 8k trend all other investments will do fine in the long run. You’re not in bad shape! Good job. :)

By: FrugalTrader

FrugalTrader — Fri, 01 May 2009 22:41:30 +0000

Sorry, I should have been more clear. Basically any company on the stock exchange could “potentiallly” pay a dividend. An exemption would be the ETF that tracks gold or any other commodity.

By: Victor

Victor — Fri, 01 May 2009 22:37:28 +0000

So you mean stocks that do not pay dividend and never have paid dividend in the past will not qualify for a deduction on income tax return for its interest cost?

By: FrugalTrader

FrugalTrader — Fri, 01 May 2009 20:27:06 +0000

Victor, providing that the stock has the “potential” to pay a dividend, it will qualify for an investment loan.

By: Victor

Victor — Fri, 01 May 2009 20:16:07 +0000

Would like to know if you are borrowing money for investing in stocks then in order for the interest to be deductible on your income tax return do you have to own only the stocks that pay dividend or you can buy and hold stocks that do not pay dividend. Thank you.

By: FrugalTrader

FrugalTrader — Fri, 01 May 2009 11:40:23 +0000

Kevin, I use the Canadian Black Book to evaluate the value of the vehicles.

By: Kevin

Kevin — Fri, 01 May 2009 02:55:25 +0000

Can you explain how you account for your vehicles and depreciation?

I love the monthly statements. I’ve started doing it, even though my wife thinks I’m a bit obsessive.

By: Canadian Finance

Canadian Finance — Thu, 30 Apr 2009 22:47:32 +0000

Yeah, I guess it’s easy for me to say when it’s not my money ;)

When I start my SM in June or July, I’ll only be doing about $500 a month in investments as I’m exactly 80% mortgage to start and $500 is about the initial principle paid in a month… so I’ll be starting nice and slow!

By: Matt

Matt — Thu, 30 Apr 2009 19:19:29 +0000

FT, I agree with your commitment to pay off your home within the next two years. These low interest rates are great right now but it is only a matter of time before someone declares we have a problem, followed immediately by lift-off. This will hopefully not occur for about 2 years as this is the amount of time I need to pay off my mortgage as well. Around this time I would also expect a run-up in commodities so I am positioning myself there now forgetting about current volatility and keeping an eye on 2011-2012.

By: Chuck

Chuck — Thu, 30 Apr 2009 18:17:00 +0000

@M Hawk

the Service Canada website allows you to see a statement of contributions.
http://www.rhdcc-hrsdc.gc.ca/eng/isp/common/proceed/socinfo.shtml

You will need to register for a service canada online account. Its different from the account you may have with the CRA.

By: FrugalTrader

FrugalTrader — Thu, 30 Apr 2009 18:02:54 +0000

M Hawk, thanks for the kind feedback! To answer your question, the pension amount is my wifes government pension, not CPP.