Welcome to the Million Dollar Journey July 2010 Net Worth Update
Very little has changed since the June update. In fact, the updates look very similar with the biggest increase this month again being … savings! While building and generating cash is the goal, it can become an issue if you don’t know what to do with it. With excess cash, my first choice is to pay down debt, but in my case, my only debt remaining has extremely low interest, or is tax deductible. The next option is to invest it, which is where I see most of the cash balance going. For 2010, I haven’t made any RRSP contributions yet, so I’ll be sure to get on that soon.
For those of you who have strong cash flow, what are your priorities for cash allocation?
On to the numbers:
Assets: $ 531,900 (+1.00%)
- Cash: $4,500 (+0.00%)
- Savings: $50,000.00 (8.93%)
- Registered/Retirement Investment Accounts (RRSP): $76,500.00 (+0.26%)
- Tax Free Savings Accounts (TFSA): $19,900 (-0.47%)
- Defined Benefit Pension: $30,450.00 (+1.67%)
- Non-Registered Investment Accounts: $12,300.00 (+0.69%)
- Smith Manoeuvre Investment Account: $55,000.00 (+0.92%)
- Principal Residence: $283,250 (+0.00%) (purchase price adjusted for inflation)
Liabilities: $68,200.00 (-2.15%)
- Principal Residence Mortgage (readvanceable): $13,800.00 (-10.97%)
- Investment LOC balance: $54,400 (+0.37%)
Total Net Worth: ~$463,700.00(+1.49%)
- Started 2010 with Net Worth: $399,600.00
- Year to Date Gain/Loss: +16.04%
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 (+inflation) despite significant appreciation in the local real estate market.
The pension amount listed above is the value of both of our defined benefit pension plans. I basically take the semi annual statement and add the contribution amounts (not including employer matching) on a monthly basis.
Stock Broker Accounts
Another common question is which discount broker do I use? We actually have accounts with multiple institutions. I’m hoping to reduce the number of accounts that we hold in the near future. Here is a review of some of the more popular online stock brokers.If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).