Welcome to the Million Dollar Journey September 2010 Net Worth Update. For those of you new to Million Dollar Journey, a monthly net worth update is typically posted near the end of the month (late this time) to track the progress of my journey to one million in net worth. If you scroll down below, you’ll see that the net worth is getting close to the $500k mark with a little over 4 years to go. If you would like to follow my journey, you can get updates sent directly to your email.
Not a lot to report this month except that we had quite a gain this month with all the stock broker accounts landing in the green. With the ever present negatively in the media, I did not expect September to come out so strong. My biggest gainers are a couple of REITs that were purchased just after the market started to turn around in 2009. My biggest losers are some of the penny stocks I own.
I have played around with a bit more trading as of late, but there is still a large percentage of cash in my portfolio. In particular, I traded a covered call option of a technology stock on the Nasdaq, but it got called away because of the strong market. Although I made a small profit on the trade (10% total), it would have been better if I could simply keep writing covered calls on the same stock and continually collect the premiums.
In addition to the strong markets, our savings remain strong. We did not have any significant expenses in September, so in combination with our relatively low expenses, it equates to more cash in the bank (how we save money).
For those of you who track your net worth, how did it turn out for September?
On to the numbers:
Assets: $ 545,550 (+1.53%)
- Cash: $4,500 (+0.00%)
- Savings: $39,000.00 (+11.43%)
- Registered/Retirement Investment Accounts (RRSP): $99,200.00 (+1.22%)
- Tax Free Savings Accounts (TFSA): $20,400 (+3.55%)
- Defined Benefit Pension: $31,200.00 (+1.30%)
- Non-Registered Investment Accounts: $12,000.00 (+3.45%)
- Smith Manoeuvre Investment Account: $56,000.00 (+2.75%)
- Principal Residence: $283,250 (+0.00%) (purchase price adjusted for inflation)
Liabilities: $64,900.00 (-2.26%)
- Principal Residence Mortgage (readvanceable): $10,100.00 (-14.41%)
- Investment LOC balance: $54,800 (+0.37%)
Total Net Worth: ~$480,650.00(+2.06%)
- Started 2010 with Net Worth: $399,600.00
- Year to Date Gain/Loss: +20.28%
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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