We have seen some considerable financial changes during the month of March. We received significant income tax refunds because of our 2020 push for RRSP contributions. The intention was to withdraw these RRSPs in 2021 for use in the Home Buyer’s Plan on our new home purchase.
Additionally, we received extra cash from a backdated pay raise which averages 6.1% for the past three years.
Finally, our employer paid us a fair-sized allowance for relocating my spouse closer to the workplace.
Net worth update for March 2021: (+6.2%)
ASSETS: (+5.7%)
CASH: (-53.1%)
- The beginning of the post mentioned a lot of positive cash-flow, however we are getting ready for our home purchase. Half of our cashflow is now in the form of a bank draft ready to be handed to our lawyer this upcoming week as our the down payment for our new home.
RRSP, TFSA, NON-REGISTERED INVESTMENTS: (+98.3%)
- We have increased our contributions to our RRSP and TFSA because of spare cashflow.
- We have added positions in CVE:ART, NASDAQ:NYMT, NASDAQ:QRTEA, TSE:EMA, TSE:MFC, TSE:RY, TSE:VFV, TSE:VXC,
- We have sold our positions in TSE:BCE
- We have received dividend income from NYSE:DRD
- We are considering adding or increasing the following positions to our portfolio over the next month: NASDAQ:OLED, NYSE:V, TSE:CP, TSE:CSU, TSE:DOL, TSE:ENGH, TSE:KL, TSE:VFV
PENSION PLANS: (+8.3%)
VEHICLES: (0%)
- This will be updated annually in January unless we sell or purchase another one.
- The amount will be based on the average trade-in value of the vehicles.
LIABILITIES: (-99.2%)
CREDIT CARDS: (-99.2%)
- We have paid off all of our credit cards. We had planned on carrying out the 0% balance transfer to term until December 2021, however, failure to understand the terms of agreement incurred us approximately $30 of interest charges. We simply had to not use the specific credit card for purchases until the balance transfer was paid off.
LINE OF CREDIT: (0%)
DEBT RATIO: (-98.4%)
I calculate the debt ratio against the assets that are associated with it. In this case, I wouldn’t cash out a pension plan or RRSP to pay off these debts. This month’s liabilities are in the form of credit card debt; therefore the debt ratio is in relation to the available cash.