Networth 2013

I have a New Year's tradition. On Jan 1 I update my books for my overall networth. I track it monthly, but it usually fluctuates due to changes in the market, higher or lower spending. Looking at it year over year shows the progress.

I also look at how much my networth changed compared to my income, and how my assets are distributed.

Increase in Networth as a % of Income

Year	Increase in NW as a % of Income
2008	58.0
2009	41.6
2010	36.3
2011	35.9
2012	49.3
2013	49.0

For most years I have been able to keep my networth increasing by more than 40% of my income, which is well beyond my goal of 25%.

Asset Distribution (%)

Year	Cash	Non Registered	RRSP	TFSA	Real Estate
2008	37.3	40.9	5.4	16.4	0.00
2009	26.1	51.2	13.5	9.2	0.00
2010	2.3	12.7	4.4	4.8	75.9
2011	2.7	13.9	7.2	5.9	70.4
2012	5.4	15.7	9.3	6.7	62.9
2013	9.5	18.4	11.9	5.9	54.2
Goal	10.0	Balance	Maximize	Maximize	Minimize

For my assets, my goal is to keep 10% in cash, which also includes my emergency fund. I want to maximize my RRSP and TFSA. For real estate, I want to pay down my mortgage as fast as possible, but I don't want my house to be the primary contributor to my net worth. I don't consider my main residence as a real part of my networth, as the value isn't realized as long as you live in it. Rental properties or investment properties are a different story, but I don't have those in my portfolio yet.

What are your Goals for your Networth? How often do you track it?

Canadian High Interest Savings Accounts

There are lots of places for Canadians to stash free cash. I have been using ING but keep up to date with other offerings. I have previously looked at this topic but thought I would share the most up to date information, rates, and links. Rates are current as of August 7th 2013.

ICICI Bank 1.45%

PC Financial Interest Plus 1.35%

Achieva Financial 1.80%

Outlook Financial 1.80%

Altamira High Interest Cash Performer 1.25%

ING Direct 1.35%

ING is the bank that I'm currently with. See my sidebar for an orange key and current ING sign-up bonus. (Right now it's $25 and bonus interest to 2.5%). ING frequently offers savings promotions that up the overall interest rates.

Manulife 1.55%

RBC 1.1%

There are lots of banks in Canada with high interest savings accounts. What do you use? Do you have a separate account, or keep one at your main bank?

Should I Use An Investment Advisor?

As my networth has been increasing, I have been considering getting an investment advisor instead of my DIY approach.

I met with an investment advisor to discuss moving some of my portfolio over to his services. At the time, I had approximately $100,000 in assets that I was willing/able to move into a full service portfolio. Assuming that I was invested in a mutual fund type of portfolio, the advisor would earn around 0.9% in commission. For my $100,000 portfolio, the advisor would get around $900. From the $900, the advisor would have to pay rent, staff, taxes, and then be left with a small profit.

How much advice would $900 get me? The advisor said he would do an initial review of my portfolio, determine an asset mix, and then we would probably meet once a year.

As my portfolio would only offer $900 in revenue, I would be one of the smaller clients, and wouldn't gain the attention or the advice I was looking for. I decided to keep growing my portfolio, until I can offer the revenue to really interest an advisor into working with me.

Do you use a DIY approach, a fee-based advisor, or a commission-based advisor?

This post was included in: Finance Carnival for Young Adults – Check Yourself Before You Wreck Yourself

Is a Super Premium Credit Card Worth It?

I wrote earlier about how I selected a no-fee cash back credit card over a fee based cash back credit card. Is a Premium Credit Card Worth It?. So it would be logical that I would also elect a no fee card over a super premium card. Or is it?

I got an American Express AeroplanPlus Platinum Card, with an annual fee of $499. Why?

A super premium card like this Amex card offers many more features than the one or two enhanced rewards of a fee based card.

I get 1.25 Aeroplan miles for every dollar spent, a 2 for 1 companion flight on a short haul flight, car rental insurance, medical insurance and baggage insurance.

In my case, the 2 for 1 companion flight is enough of a benefit to outweigh the annual fee. In addition, I travel for work, and the combination of the travel rewards with my airline status gives me more chances to use the card. I also make use of the various travel insurances provided with the card.

The decision to select this card was difficult, and I spent a lot of time considering the options available, and if I would truly use the features. At the end of the year, I will add up the benefits to see if they outweigh the annual fee, and if I will decide to renew.

If you are considering one of these super premium cards, I urge you to do the math for yourself, and add-up the benefits against the much higher cost.

What credit card(s) do you have and what made you chose them?

DRIP Update in Carnival of Personal Finance #425

Jacob at My Personal Finance Journey hosted this week's Carnival of Personal Finance.

You can find my DRIP Update article there, as well as, many other articles about Personal Finance.