Probably the least exciting post about my net worth so far this year. Why? Because I didn’t make any major purchases, I didn’t borrow from or pay back money to friends nor family, I didn’t make an update on my company value nor my house… In short, I just had a regular month in a regular life… sounds weird to me, doesn’t it?
I actually have one problem with my net worth that I didn’t bring in yet: how to evaluate my pension plan.
I am lucky enough to contribute to a determined benefit pension plan offered by my employer. Besides Governments, there are not many employers offering such pension plans anymore. Why? Simply because the whole responsibility of the annuity at retirement (it is a known amount) relies on the employer’s shoulders. As we saw what kind of damage it can do to a company during rough years on the market (just think of GM for a minute), most companies are moving toward group RRSP plans where they match a part of the employee’s contribution.
Now back to my problem; each year, I receive a booklet with all my employee benefits (insurance, bonus, salary, pension plan, etc.). They also give you a “value” of your pension plan. This amount represent how much they would give you if you left the very same day. Since my pension plan is not inflation adjusted once I retire, the value of my pension plan is very low. This sometimes makes me wonder why I contribute to it… but that’s another story!
So the pension plan value is actually under the $12,000 I put in there. I’ve actually done another type of calculation to know what would be the approximate amount but I apparently got it wrong ;-). So I’ll keep the $12,000 until it actually reach it. What I don’t like about this type of calculation is that I am left with a tiny amount of RRSP contribution each year but I don’t see the real benefit of my pension plan until I retire…. in 26 years (yup, I’m already counting my years to retirement…. at 55 ;-D ).
So here’s my net worth status (I still haven’t received my welcome tax yet… good news… for now 😉 ).
CHECKING ACCOUNT $1,617 $2,156 33.3%
$3,280 $3,689 12.5%
RRSP ACCOUNT $15,772 $16,023 1.6%
PENSION PLAN $12,000 $12,000 0.0%
HOME $332,000 $332,000 0.0%
COMPANY SHARES $70,000 $70,000 0.0%
MAZDA TRIBUTE $25,172 $24,738 -1.7%
MAZDA RX-8 $12,400 $12,000 -3.2%
TOTAL $472,241 $472,606 0.1%
CREDIT CARD $1,697 $5,474 222.6%
LINE OF CREDIT $18,727 $18,703 -0.1%
HELOC $264,761 $263,839 -0.3%
CAR LOAN $25,172 $24,738 -1.7%
MBNA 1.99% TRSF $12,000 $11,661 -2.8%
TOTAL $322,357 $324,415 0.6%
Total Net Worth: $148,191 (-1.13%)
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