August 2009 Net Worth Update (+1.70%)
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 Cash
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.
Savings
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.
Real Estate
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.
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FT – do you have a spreadsheet template that you could post for tracking net worth? I would like to start tracking, and if i don’t have to reinvent the wheel, I won’t :)
I have quite the penchant for calling top of markets (at the time that I decide to go buy big lots). So you all should be worried if your prices are higher than July 27th prices :P
I meant to say (I had it right the first time) “I was convinced that the banks would come down again.”
I’m shorting HNU since Monday (up about 17% in 2 days) and shorting the financials by buying HFD. That was a long term play and, if I had have studied the way these derivatives worked, I would have shorted HFU instead of buying HFD.
I took the position in HFD because I wasn’t convinced that the banks would come down again. So, I’m certainly below water with my HFD but because of the positions I have in the banks, I’m net positive.
I think we might finally see a retracement – and when it happens, I will be pouring everything I have left in to the market. I keep hearing there is still a lot of money on the sidelines and they must be gnashing their teeth that the missed so much upside. Thus, one has to think that when we finally get a pull back (nothing like March 9 lows) that this will be what a lot of that money has been waiting for.
Are you shorting HXU or long HXD in your leveraged port?
FT,
No, I don’t own it, but of the 5 mentioned (not sure why they forgot to mention the sixth stock) that was the only one that stood out. I don’t like any stock which has a great history of dividend growth and low payout ratio of there is a loss in capital appreciation (e.g. Pfizer).
Corus Entertainment is also quite far afield from commodity linked or financial stocks.
I’ve put a note to alert me if it gets below $14 so that I can look at it more closely. Analysts are typically averaged around hold for it right now. More and more analysts are expecting we are at, or near, the beginning of a pull back in the next couple of months.
I’ve put some money in my SM portfolio towards a down trend so that not only can I profit on a downturn, but also then have more money to pick up some further or new positions in stocks I want to own long term.
Sorry… forgot the link (I notice that I am not offered the option to edit a post within 5 minutes anymore!)
http://network.nationalpost.com/np/blogs/tradingdesk/archive/2009/08/24/true-yield-nice-complement-to-payout-analysis.aspx
Thanks for the link CF. CJR.B looks interesting… do you hold it?
FT,
If you are looking to expand your investment portfolio with dividend payers, then take a look at this article. Could help diversify your holdings. I haven’t done any analysis yet (just got back from vacation) but I will.
I hope there will only be a small correction, but I’m expecting a big correction.
Nice job with increasing your net worth.
well this is a informative post and i agree with one of the above commenters that the hike in the market can cause skepticism in the minds of the people and can make the situation intense. and i will look forward for the excel graphics :)