The month of April went by quickly! The TSX began May strongly at 25,031.51 points and closed the week with a gain of 235.96 points (+0.95%). My net worth at the end of the day stood at $469,222.44. However, I must admit I’m slightly cheating. I’ve included my expected tax return of $3,772 from the federal and provincial governments in my savings, even though I haven’t received the money yet. It's on its way, but not in my account yet. My savings currently stand at $10,199.02, and not the $13,971.05 I’ve been reporting. I did spend quite a bit recently, but I expect to close the month of May with at least $14,500 in savings, if not a little bit more.
This year, my total income came close to $75,000. That includes my regular salary, some overtime, and dividend income from my non-registered account. I contributed over $15,000 to my RRSP, which brought my taxable income down to around $57,000. This reduction was thanks not only to my RRSP contribution, but also to some medical expenses and financial fees tied to my margin account. I paid off my margin debt in December, so I won’t be able to claim any financial fees next year. Due to my large RRSP contribution, I now qualify for the Quebec Solidarity Tax Credit. It’s something I haven’t received in years. I’ll be getting $91.82 every four months. I won’t say no to that, although I honestly feel I probably shouldn’t be eligible. Altogether, I’m getting a $4,139.29 refund. For a $15,000 contribution, the return isn’t incredible, and I’m not fully satisfied, but I did the best I could.
Generally, I don’t like locking money away in an RRSP since I can’t access it until retirement. The reason I contributed so much this time is because I sold my BCE shares from my non-registered account and decided to reinvest that money into my RRSP to help recover from a capital loss, which was around $5,000 if I remember correctly. That chapter is now officially closed.
Tax season is always a bit of a pain, but this year was next level. My taxes were completed at the very last minute, despite me sending my documents weeks in advance. I wasn’t too happy about that. Next year, I’ll be looking for a new tax service provider.
Another admin task I’ve had to tackle recently is renter’s insurance. I went without insurance for years, which I sincerely don’t recommend. I spent the winter in New Brunswick, and two houses nearby caught fire. The tenants apparently had no insurance. Another fire affected a duplex housing students, and again, no one was insured. Renter’s insurance is essential.
I've had coverage for the past few years, and with my renewal coming up in June, I decided to review it. My property damage coverage used to be $11,000 — I increased it to $30,000. My coverage for additional living expenses and rental value went from $2,500 to $6,000. The increase only added a few dollars to my premium. I adjusted the coverage because of inflation, but also because renting in Montreal has become more expensive and more competitive. In a disaster, it could be difficult to find a new place quickly. With $6,000, I’d have some breathing room for temporary housing. The $30,000 covers all my personal belongings. While I don’t think I own that much in material value, it’s better to have more coverage than not enough.
My renter's insurance now costs $367 per year. My rent is relatively low at $770/month compared to typical Montreal prices, but I live in a small one-and-a-half apartment with limited storage. My wardrobe is small, but I make it work. I’ve lived here a long time and always chose the most affordable rental options. However, if you go too low, the quality of life suffers. Sometimes I dream of having a real living room, a proper kitchen table, and an office with a bookshelf for my collection — just a normal living space. But I’m willing to make the little sacrifice to build my portfolio. If I were paying $1,500/month in rent, I wouldn’t be sitting right now on a $469K net worth. Rent money gives you nothing in return. It’s just the price of a flushing toilet and a roof over your head. It shouldn’t be that expensive.
That said, my current net worth of $469,222.44 puts me very close to my all-time high of $469,813.55, reached in January. I’m now only $30,777.56 shy away from hitting the big milestone: $500K. Days like today make me believe I can actually achieve it this year.
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