Net Worth Update June 2010 (+1.45%)
Welcome to the Million Dollar Journey June 2010 Net Worth Update
With summer underway, it’s the time of year where vacations are plenty and things slow down a bit in online world. Trading volumes decrease, markets slow down, and blog followers are busy enjoying the sunshine. On the same note, my net worth increases continue to be slow, steady and predictable. Once again, the markets have been volatile this past month, but savings continue to be the strength on the balance sheet.
With regards to my investment accounts, I’m still sitting on quite a bit of cash. I picked up a couple new positions in my Smith Manouevre account as discussed in my last update, but my RRSP and TFSA have seen very little action lately. It’s going to be interesting to see when most income trusts convert to corporations. It will give us dividend investors much more selection come 2011.
On another note, I have my vacation days booked, but no real plans yet. How about you? Do you have an annual budget set aside specifically for vacation?
On to the numbers:
Assets: $ 526,610 (+0.99%)
- Cash: $4,500 (+0.00%)
- Savings: $45,900.00 (9.29%)
- Registered/Retirement Investment Accounts (RRSP): $76,300.00 (+1.46%)
- Tax Free Savings Accounts (TFSA): $19,994 (+0.12%)
- Defined Benefit Pension: $29,950.00 (+1.70%)
- Non-Registered Investment Accounts: $12,216.00 (-6.75%)
- Smith Manoeuvre Investment Account: $54,500.00 (+0.93%)
- Principal Residence: $283,250 (+0.00%) (purchase price adjusted for inflation)
Liabilities: $69,700.00 (-1.97%)
- Principal Residence Mortgage (readvanceable): $15,500.00 (-9.36%)
- HELOC balance: $54,200 (+0.37%)
Total Net Worth: ~$456,910.00(+1.45%)
- Started 2010 with Net Worth: $399,600.00
- Year to Date Gain/Loss: +14.34%
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.
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Nice update as always FT. Can’t wait to see you hit the 7 digits! x,xxx,xxx!
The end of this year looks promising for both of us. I still average 70% income savings/ month :)
@Life insurance quotes:
I have a small pac plan setup with a SegFund. There are many good things about segregated funds.
1. they are guaranteed after a certain amount of years. (years depend on the class you buy) 75-100% guaranteed.
2. Any money in a seg fund is creditor proof.
3. you can withdraw whenever you want and not get dinged.
If you are looking into them, make sure you check out the history of the company. Mine has never had a negative 10year period. So as long as I keep it for 10 years, it has a guaranteed gain; and averaging 8-10% aint too shabby.
You may want to take a look at mutual funds as well, they are very diversified (depending on which one you buy).
Having some funds set aside for vacationing is always a good idea. Perhaps you’d want to consider a major trip every 3 or 5 years based on your savings amount. It gives you a target to strive toward and it can the anticipation of the trip that much better.
You can turn this into a family personal finance learning opportunity as your kids learn to save if they would like to have a luxury.
Keep up the good work with your net worth changes.
FT, This update is impressive. A 14.3% year to date gain in net worth is very good considering the way the markets have been. You must be really doing well on the savings side….
Nice post. You have given a good insight in managing wealth. Yesterday I was talking to a financial planner who told me segregated funds are best bet to grow money. What is you opinion on this ?
As always, continually impressed with your NW progress. Keep up the great work. Yes, to be sitting on $45 K is quite a bit of cash indeed!! Wouldn’t now be a great time to buy more dividend payers? I’m not saying throw all $45,000 into them, rather, maybe $10 K into one stock: ENB, BNS or TA and increase your position.
I’d be curious to know what you’re going to do with that tidy sum.
Anyhow, no doubt it will be interesting to see what happens when most income trusts convert to corporations – I’ve got my eye on JE.UN for my TFSA in 2011.
Yes, my wife and I set aside a budget for our vacations. We save up money and pay off our vacations before the plane leaves the tarmac. We don’t typically buy or expense things we can’t pay cash for the following month. No doubt you have the same habits :)
Happy Canada Day to you! Time for a cold beer!
@Ticker, Good question! The reason is that my mortgage currently has an extremely low rate P-0.85% and I calculated that with my current payment schedule, the mortgage will be paid off in a short time anyways (less than 1 year remaining).
@ldk, it depends on what your interests/free time looks like. Contact me and we’ll discuss!
Curious why you don’t pay off the mortgage with money from the savings account. If the mortgage is readvancable I do not see the risk. Just trying to understand and learn.
congrats FT, great blog!
Thanks FT. Great blog!
wow your net worth is just constantly improving it seems. I think it’s so important how you track it all because it really shows you your net worth.