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 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 (+inflation) despite significant appreciation in the local real estate market.

Pension

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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