Dec 192016

2016 is turning out to be a spectacular year for equity investors. ūüôā The Canadian S&P/TSX index is up 17% year to date, while the Dow Jones index in the United States is up 14%. Wow! That’s impressive even by historical standards. The markets¬†have done an excellent¬†job of¬†beating expectations lately. ūüėÄ We could even see the Dow hit 20,000 points before December 31st if we’re lucky.

December is usually a good time to re-examine our¬†investment portfolios and see if there’s any adjustments we¬†need to make to our¬†asset allocation or general financial plan. Personally, this last quarter¬†has been quite eventful for me¬†as I’ve contributed over $30,000¬†in new investments. As of now¬†here is a breakdown of all my assets and liabilities. ūüôā Everything has been rounded to the nearest $1,000 in $CAD.

Net Worth At a Glance

Assets by Account/Type: 
$19,000 – TFSA at Canadian Western. Private mortgage fund.
$47,000 – TFSA at TD. Mostly income trusts.
$14,000 –¬†Cash trading account at TD. Mostly stocks.
$86,000 Р RRSP at TD. Bonds, U.S. equities, and MICs + REITs.
$170,000 РMargin Account at IB. Mostly dividend stocks.
$10,000 – SolarShare bonds.
$263,000 – Primary residence.
$433,000 – Farmland.
Total Assets = $1,042,000

$186,000 – Home Mortgage
$192,000 – Farm Mortgage
$58,000 – Margin Loan
$17,000 – TD LOC
$17,000 – HELOC
$10,000 – CIBC LOC
Total Liabilities = $480,000

Total Net Worth =¬†$562,000 ūüôā

Farmland still¬†makes up a rather large piece¬†of the pie chart. I can’t complain that my farmland¬†went up 10% in value, but I would like to see my stocks and¬†fixed income allocation increase¬†to create a more balanced portfolio.

Last year in December 2015, my¬†farmland represented 44.6% of my asset allocation. This year it has gone down to 40.3% so I am making progress. But it is still not enough. I have to stay focused on my goals and make changes to my situation. As George Bernard Shaw once said, ‚ÄúThe people who get on in this world are the people who get up and look for the circumstances they want, and if they can’t find them, make them.‚ÄĚ

So in 2017 I plan to buy more¬†fixed income assets and dividend paying stocks to increase my relative position in those liquid asset classes. ūüôā

Below are some more details about my various investment accounts.

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Sep 162011

Our household net worth for the country is about $6.4 Trillion. On a per capita basis, the average person living in Canada has a net worth of $184,300. I am surprised at how low this number is but I think as the population ages, we should see this figure grow. If not, then we are in deep trouble.

What might be worrying now is seeing household debt continue to grow as a result of both higher mortgages and more consumer borrowing (this, I am guilty of.) I still have a long way to go before my net worth reaches the national average but I wonder how much of that number is over inflated due to the prolonged environment of low interest rates.

A big chunk of Canadians’ net worths are in our homes. Our housing prices are 7% higher year over year, but our GDP growth hasn’t even come close to that. ¬†If rates continue to stay this low I wouldn’t be surprised if real estate prices grow by another 7% by this time next year. In any case it would certainly be nice to¬†have at least a million dollars in investable assets before I retire.

Source: statcan