Welcome to the Million Dollar Journey March 2009 Net Worth Update – The Market Rally Edition.
Finally, some relief from the markets where buyers are starting to come back. Investors seem to have renewed faith in financials and other dividend paying blue chips. My feeling is that this is a temporary rally, but who knows what the markets will do in short term.
As a result of the mini rally though, my portfolios have been propped up a bit. My RRSP portfolio is showing a fairly significant gain because of a $5k contribution I made this month in additional to organic gains.
I’ve been more interested in learning about options lately, in particular, covered call option writing. Basically giving another investor the option of purchasing a stock that you own at a set price. In return, you get to collect the premium for offering the option. Anyone here have any experience writing covered call options? Do you have a specific strategy?
In terms of liabilities, I’ve added a tax liability for my recently sold rental property due for tax year 2009. As well, I’ve also noticed that with lower interest rates, more of my mortgage payment is going towards the principal. I say that we enjoy the low rates while we can!
Assets: $447,250.00 (+1.73%)
- Cash: $4,500 (+0.00%)
- Savings: $34,500 (-3.36%)
- Registered/Retirement Investment Account: $46,500 (+16.25%)
- Pension: $22,350 (+0.00%)
- Non-Registered Investment Account: $13,500.00 (+3.05%)
- Smith Manoeuvre Investment Account: $39,900 (+7.84%)
- Investment Property: $ 124,500 (+0.00%)
- Principal Residence: $275,000 (+0.00%) (purchase price)
- Vehicles: $11,000 (2 vehicles) (-8.33%)
Liabilities: $129,500.00 (+1.25%)
- Tax Liability: $3,000
- Investment Property Mortgage: $92,000 (-0.11%)
- Principal Residence Mortgage (readvanceable): $74,500 (-1.97%)
- HELOC balance: $52,000 (+0.19%)
Total Net Worth: ~$317,750.00 (+1.92%)
Started 2008 with Net Worth: $309,950.00
Year to Date Gain/Loss: +2.52%
It’s encouraging to see that my net worth is moving in the right direction again. 2009 may end up being a challenging year for double digit net worth growth, but we never know unless we try!
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 all held with PC Financial. We 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.
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