Time for another net worth update: The March 2008 Edition!
There is a saying in Newfoundland that would describe the markets perfectly.. "The arse has fallin out of her." When will the markets find a bottom? Are we there yet? In terms of market returns, the only reason my retirement accounts are showing positive relative to last month are due to a $3,000 contribution.
My non-registered accounts are still mostly cash and I'm waiting for my opportunity to buy more over sold dividend paying stocks. To me, those dividend yields are looking pretty attractive, especially big bank stocks. In fact, I've already started dabbling in a couple stocks in my leveraged investment account. More on this in my upcoming Smith Manoeuvre Portfolio updates.
In other parts of the net worth statement, there was quite a shakeup this month as we finally closed on our new house. The large $100k+ savings that we had was deployed into a readvanceable mortgage which is indicated below.
Here are the numbers:
Assets: $570,750 (+46.76%)
- Cash: $4,500 (+0.00%)
- Savings: $ 35,400 (-71.08%)
- Registered/Retirement Investment Account: $ 50,000 (+2.46%)
- Pension: $ 22,350 (+0.68%)
- Non-Registered Investment Account: $18,000 (-60.44%)
- Smith Manoeuvre Investment Account: $25,000 (+100%)
- Investment Property: $ 124,500 (+0.00%)
- Principle Residence: $275,000 (+100%)
- Vehicles: $16,000 (2 vehicles) (-0.00%)
Liabilities: $280,600 (+275%)
- Investment Property Mortgage: $93,900 (-0.21%)
- Principle Residence Mortgage (readvanceable): $153,700 (+100%)
- HELOC balance: $25,000 (+100%)
- Other Liabilities: $8,000 (-0.00%)
Total Net Worth: ~$ 290,150 (+1.17%)
Started 2008 with Net Worth: $279,300
Year to Date Gain/Loss: +3.88%
2008 has started off at a slow pace but any gains are good in this market environment.
In addition to buying dividend paying stocks, I'm thinking about using my HELOC to purchase another rental property should the opportunity come up. I'm still up in the air about that one. The only issue is the cash flow risk involved as we are currently living on 25% reduced income. Actually, until the maternity benefits come in (30 days), we are living on 50% income.