Comments on: Sept 2009 Net Worth Update (+2.78%) – Pension Buy Back Edition

By: Financial Samurai

Financial Samurai — Wed, 14 Oct 2009 17:00:59 +0000

There’s been significant real estate appreciation in your part of the country? Please tell us where! Maybe I should invest!

I’m impressed that your property has gone up in the biggest financial meltdown in our lifetimes.

By: used tires

used tires — Sat, 03 Oct 2009 22:16:58 +0000

Pretty cool looking at a real world budget example, I am a finance student in my third 3rd year as you know, so I am constantly looking at corporation’s balance sheets in my corporate finance course. =D

Till then,

Jean

By: Ms Save Money

Ms Save Money — Fri, 02 Oct 2009 22:44:17 +0000

If you continue to see your investments going high it’s an indication it’s going to drop – or at least for the most part everyone has experience this.

By: Credit Card Chaser

Credit Card Chaser — Fri, 02 Oct 2009 05:25:55 +0000

I would agree with you on your desire to always have cash on hand in case something comes up. While many people have heard of the 3-6 months living expenses rule for setting aside money as an emergency fund it is also great that you mentioned that having liquid funds available to invest if something great comes up is not something to discount. Keep it up!

By: FrugalTrader

FrugalTrader — Fri, 02 Oct 2009 02:20:16 +0000

Hey Stan, as you mentioned, we decided to pay lump sum because 1. they were charging interest if we were to pay in installments, and 2. because we had cash on hand. Which province do you work for?

By: Stan

Stan — Thu, 01 Oct 2009 23:31:56 +0000

FT, I’m intrigued as to why you are paying a lump sum on the service buyback. I believe government employers (at least the federal ones) allow you to buy back your pension over an amount of time equivalent to twice your leave (i.e., two years for a one-year mat leave) without any fees or interest. Even though we could afford to pay off our parental leaves right away, we decided to spread them over two years, since it’s essentially a free instalment plan. Maybe your wife’s employer doesn’t offer the same advantage.

By: aerosmith

aerosmith — Thu, 01 Oct 2009 19:16:01 +0000

thanks for the clarification. One question though related to tax. As of today you have some RRSP invsetments. Do you consider the entire RRSP investment amount towards your net or the after tax net amount (since you are not yet benefiting form the RRSP) of the investment. Like you may have $1000 in your RRSP today but if you withdrew the investment today you’ll only get back (1000-marginal tax). Isn’t this amount your real net worth?

By: FrugalTrader

FrugalTrader — Thu, 01 Oct 2009 18:23:48 +0000

aerosmith, my tax liability is from the sale of a rental property earlier this year.

By: aerosmith

aerosmith — Thu, 01 Oct 2009 16:52:17 +0000

just wondering what the tax liability is and how do you calculate it? Thanks for the update.

By: canucktuary

canucktuary — Thu, 01 Oct 2009 14:22:12 +0000

That’s too funny Ben :)

Congrats again FT! You’re on track for a 29% net worth increase this year.

By: Forex Hacked Review

Forex Hacked Review — Thu, 01 Oct 2009 05:07:53 +0000

I agree with Sarlock.

Congrats on the big year.

By: Sarlock

Sarlock — Thu, 01 Oct 2009 02:59:57 +0000

Nice work so far this year!

I’d keep the real estate valued as it is… it’s better to be overly conservative with that sort of valuation. And besides, if you boost it up, it’ll raise your net worth significantly and you don’t want that… you want to keep the carrot where it is so that you keep working hard to organically raise it to that $1 million target… and if we have a real estate crash (which I believe is coming) then you won’t have to dial it back again.

By: Sam Li

Sam Li — Thu, 01 Oct 2009 02:00:26 +0000

Sorry, my bad. I’m reading “Frugal Dad” as well, Jason White the author. Congratulations on the progress.

By: David@DINKSFinance

David@DINKSFinance — Thu, 01 Oct 2009 01:18:10 +0000

Congratulations on the positive year! Smart move buying back the pension. Could get expensive quick if you have many more kids though!

By: FrugalTrader

FrugalTrader — Wed, 30 Sep 2009 23:19:06 +0000

Who’s Jason? :)

By: Sam Li

Sam Li — Wed, 30 Sep 2009 23:06:21 +0000

Way to go Jason!

By: FrugalTrader

FrugalTrader — Wed, 30 Sep 2009 21:17:49 +0000

Thanks for the heads up guys, will fix the typo.

By: Adam

Adam — Wed, 30 Sep 2009 15:10:29 +0000

Congrats, I also noticed the ’started 2008′ line immediately, not sure why it jumped out this time.

I really need to work on this whole dual income scenario. ;)

By: Ben

Ben — Wed, 30 Sep 2009 13:47:55 +0000

Well, what do you know. 9 months go by and nobody makes a peep, and then 2 birds chirp up within 1 minute of each other.

What are the odds of that?!

By: Ben

Ben — Wed, 30 Sep 2009 13:45:30 +0000

You’re having a monster year!

There is a small recurring typo in your summary – should read “Started 2009 with…”

Cheers,
Ben