Welcome to the Million Dollar Journey August 2009 Net Worth Update.
There’s not a lot to report this time as not a lot has happened in the month of August. The markets continue to edge upward but we are closing in on the volatile September and October months. Do you expect a significant market correction coming soon? Or do you think that their may be a smaller correction but continue on with the upward trend?
With regards to savings, we did well this month sticking to the game plan. One of our financial goals is to save a percentage of our income regardless of how much our income increases. The cash is either used for RRSP/TFSA contributions, mortgage pay down, or a general cash account.
Speaking of mortgage pay down, we have done well this year chipping away at the balance and we should meet our goal of eliminating our mortgage in early 2011.
Assets: $457,350 (+1.07%)
- Cash: $4,500 (+0.00%)
- Savings: $13,000.00 (+30.00%)
- Registered/Retirement Investment Account: $69,000 (+2.99%)
- Pension: $22,650 (+2.99%)
- Non-Registered Investment Account: $17,000.00 (+0.00%)
- Smith Manoeuvre Investment Account: $48,700 (+0.41%)
- Principal Residence: $275,000 (+0.00%) (purchase price)
- Vehicles: $7,500 (2 vehicles) (-6.25%)
Liabilities: $88,600.00 (-1.45%)
- Tax Liability: $3,000 (-0.00%)
- Principal Residence Mortgage (readvanceable): $32,500 (-4.13%)
- HELOC balance: $53,100 (+0.19%)
Total Net Worth: ~$368,750.00 (+1.70%)
- Started 2008 with Net Worth: $309,950.00
- Year to Date Gain/Loss: +18.97%
Some quick notes and explanations to net worth questions I get often:
The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees (accounting for regular bill payments). Yes, we do hold no fee accounts also, but I find value in having an account with a full service bank as the relationship with a banker can prove useful.
Our savings accounts are held with PC Financial and ING Direct. We usually hold a fair bit of cash in case “something” comes up. The “something” can be anything that requires cash such as an investment opportunity that requires quick cash or maybe an emergency car/home repair. We also need cash to cover any future tax liabilities.
Our real estate holdings consist of a primary residence plus a rental property. The value of the principal residence remains valued at the purchase price despite significant appreciation in the real estate market that we’re in. I will most likely be adjusting the value of the home come the new year.