Million Dollar Journey

Building Wealth through Saving and Investing

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Net Worth Update June 2012 (+1.69%) – Growth Chart Edition

Welcome to the Million Dollar Journey June 2012 Net Worth Update.  For those of you new to Million Dollar Journey, a monthly net worth update is typically posted near the end of the month (or beginning of the next) to track the progress of my journey to one million in net worth, hopefully by the time I’m 35 years old (end of 2014).  If you would like to follow my journey, you can get my updates sent directly to your email or you can sign up for the Money Tips Newsletter..

The first half of 2012 continues to be a rough one for investors, but the bleeding seems to have stopped – for now.  With the TSX (via XIU) dropping 5.5% in May,  June was thankfully relatively flat.  My portfolios still took a hit as they are relatively high in energy, which continues its bear run.

So where did the overall net worth growth come?  A larger than expected tax refund and a large cash dividend out of our corporation.  The large tax refund was not intentional as we normally withdraw enough out of the corporation so that we receive very little or no tax refund at the end of the tax year.  But last year, child care expenses were higher than I expected, which resulted in the refund.

Related: Use Your Business to Pay for Personal Tax Deductible Expenses

On to the numbers:

Assets: $714,400 (+1.52%)

  • Cash: $4,500 (+0.00%)
  • Savings: $87,000 (+19.18%)
  • Registered/Retirement Investment Accounts (RRSP): $123,400(-1.44%)
  • Tax Free Savings Accounts (TFSA):  $39,900 (-0.75%)
  • Defined Benefit Pension: $39,100 (+1.03%)
  • Non-Registered Investment Accounts: $32,000 (-0.31%)
  • Smith Manoeuvre Investment Account: $88,000 (-1.68%)
  • Principal Residence: $300,500 (+0.00%) (purchase price adjusted for inflation annually)

Liabilities$83,000 (+0.24%)

Total Net Worth: ~$631,400 (+1.69%)

  • Started 2012 with Net Worth: $585,228
  • Year to Date Gain/Loss: +7.89%

In my last update, readers suggested to chart my net worth progress over time.  Below are the net worth values since Dec 2006 with data points taken semi annually.

Some quick notes and explanations to net worth questions I get often:

The Cash

The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees (accounting for regular bill payments – ie. our credit card bill). Yes, we do hold no fee accounts also, but I find value in having an account with a full service bank as the relationship with a banker has proven useful.


Our savings accounts are held with PC Financial and ING Direct. We usually hold a fair bit of cash in case “something” comes up. The “something” can be anything that requires cash such as an investment opportunity that requires quick cash or maybe an emergency car/home repair.  We also need cash to cover any future tax liabilities.

Real Estate

Our real estate holdings consist of a primary residence and REITs plus a rental property. The value of the principal residence remains valued at the purchase price (+inflation) despite significant appreciation in the local real estate market.


The pension amount listed above is the value of both of our defined benefit pension plans.  I basically take the semi annual statement and add the contribution amounts (not including employer matching) on a monthly basis.  The commuted value of the pensions are not included in the statements as they are difficult to estimate.

Stock Broker Accounts

Another common question is which discount broker do I use?   We actually have accounts with multiple institutions.  I’m hoping to reduce the number of accounts that we hold in the near future.  Here is a review of some of the more popular online stock brokers.

11 Comments, Comment or Ping

  1. Wow. That chart says it all.

    Very well done.

    You continue to be an inspiration.


  2. 3. nobleea

    Good work again FT.
    Looks like a fairly linear growth chart (mine does too), averaging 78K growth/year. 1million looks to be achievable in April, 2017.

  3. 4. Jacq

    You should have waited until COB today for the post for the EU energy bump. :-) Good job although I’m not sure what the point is of the almost 6 figures in savings that could surely be pulling a better (relatively risk free) return? I’ve stopped using savings as a “what if” fund since the TFSA was established.

  4. 5. Kdog

    You mentioned a corporation in your writing, but you don’t have it in any calculations. Why not? Too difficult to calculate the value? I have several corporations myself and definitely calculate it as part of my net worth.

  5. 6. Dave

    Thanks for sharing your financials with us. I see your well on your way to one million. I wonder if it is getting easier for you to manage all this? It’s seems like a lot of book keeping for you.

  6. I just saw your site and I must say it is really encouraging!
    I hope you can achieve your goals. I also have a savings account with ING and I feel good.
    The worst enemy is inflation and currently I am looking for inflation-linked bonds. Do you own them?

  7. 8. apm


    Have you posted your income / savings rate anywhere on your blog? It’d be interesting to see in comparision to this.

  8. 9. Cal

    Do you intend on deploying any cash in the near term for investing? You seem to have alot at this time, and could easily invest some and keep a good 50K for emergency purposes.

    Also, you track the principal residence with inflation based on purchase price, what would a similar home sell for? (I guess minus RE fees) Just curious to know how accurate your inflation calculation is for simple tracking purposes.

    And what happens when you hit your goal of a million in net worth? 10 million by 60? I guess you have a few years to decide. lol.

  9. @Cal, yes I plan to move some money into non-registered investment accounts. Another thought it to pay down some of the investment loan and reborrow it again to invest in my dividend portfolio.

    I would guess that we could list this house for $400k on the conservative side, or around $370k after real estate and legal fees.

    $1M in net worth is definitely not the end goal, but the milestone that I’m going for in the near future. The ultimate goal is to have a portfolio big enough so that it distributes enough in dividends to pay our household expenses.

  10. 11. Cal

    I would love to see a follow up article in regards to your LOC and the investments. (I don’t care what you bought equities for, and dates and prices) But a more generalized article about the LOC rate, and the return you are getting in your equities, and how your think it may pay off in the future. I am going on the assumption that you got the loan for the Smith maneuver as the amounts are similar, and that you are reivesting your dividends in that situation. If there already is an article on that, I missed it, so a link would be great.


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