Welcome to the recurring monthly net worth update – The September 2008 edition.
Seems that lately having the word “frugal” in my handle is hypocritical. As one of my regular readers puts it, I’ve been “spendy”. This month, it started with the new HD TV along with cables, then of course we had to get a new TV stand, and most recently, a food processor for the little one. Of course each of the items were purchased at a great price, but still a substantial amount of cash. As we typically like to buy for the long term, we’re hoping that the excessive spending will come to an end soon.
Onto the markets, let me start by saying that when the markets run in the downward direction, it’s usually a bad time to sell. As I’ve mentioned before, it’s healthy for the markets to correct before it resumes it’s long term move upwards. Personally, I consider bear markets to be a great opportunity to purchase your favorite companies on sale. Speaking of which, I will have a post about Benjamin Graham stock picking strategies coming up soon.
Enough rambling, here are the numbers for the month of September.
Assets: $592,950 (-0.02%)
- Cash: $4,500 (+0.00%)
- Savings: $31,500 (+12.50%)
- Registered/Retirement Investment Account: $52,700 (-4.70%)
- Pension: $22,350 (+0.00%)
- Non-Registered Investment Account: $18,000 (-2.17%)
- Smith Manoeuvre Investment Account: $50,400 (-1.18%)
- Investment Property: $ 124,500 (+0.00%)
- Principal Residence: $275,000 (+0.00%) (purchase price)
- Vehicles: $14,000 (2 vehicles) (+0.00%)
Liabilities: $275,732 (-0.43%)
- Investment Property Mortgage: $92,700 (-0.22%)
- Principal Residence Mortgage (readvanceable): $124,050 (-0.95%)
- HELOC balance: $50,982 (+0.40%)
- Other Liabilities: $8,000 (-0.00%)
Total Net Worth: ~$317,218 (+0.34%)
Started 2008 with Net Worth: $279,300
Year to Date Gain/Loss: +13.58%
Looking over the numbers, even with the increased spending, we have managed to increase our savings amounts. That, however, is probably our net worth saviour as my portfolios have been taking a beating over the past couple months. With only a few months remaining in 2008, it seems that meeting my net worth goal may be a challenge. Not unless of course, we get the unlikely event of a sudden market turn around from bear to bull market.
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. 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 due to a cash liability coming in the near future along with the fact that we typically have some cash on hand 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.
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. The rental property value was it’s appraised value in 2006. I’m considering raising the reported values of the homes at the rate of inflation starting January 2009.