August 2011 Net Worth Update: 132,643 (-0.7%)

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$132,643 (-0.7%)

This networth update is brought to you today by the colour RED.

I must admit, I almost didn't want to do a net worth update this month because I didn't want to look at the damage August 4 did on my investment accounts.  Boy was the damage pretty terrible.  I'm still holding strong and haven't panicked, so that must be a good sign, right?

I haven't bought any stocks since the beginning of June, but I think I'll be buying and selling some stocks given the big change in the markets.  I'm thinking of loading up while the prices are low on my dividend investments.

Okay, so here’s the breakdown for this month:
ASSETS:

CASH: $12007 (+1.10%)

  • More money Pictures, Images and PhotosBoyfriend and I have a joint account which our mortgage is deducted from, and our own personal accounts
  • I added up my chequing and savings accounts (High Interest Savings Account). I automatically deduct money from my chequing account and have it siphoned to the HISA account (paying yourself first)
  • I have $2050 saved up for my goal of climbing Mt Kilimanjaro (highest peak in Africa) within 1-2 years. If you want to help contribute to my personal lifelong dream, feel free to sign up for an ING account with my orange key. You’ll get $25 if you start an account with $100, and I will get $25 too. 🙂

STOCKS: $16,2223 (-11%)

  • Um… one word.  “OUCH”.
  • These are stocks that capture the “moment in time”, including unrealized gains or losses in my BMO Investorline and Questrade accounts. I added up USD and CAD stocks as “Canadian” money to be simplistic (even though our dollar is high now)
  • I'm surprised this is in the somewhat positive territory this month as stocks have continued to take a beating. I didn't add to any positions this month or buy any more stocks.

RRSP: $11068 (-2.6%)

  • This includes the pre-authorized monthly contribution into my TD E-Series account, a GIC in my ING Direct Account and my new Questrade RRSP account.
  • The RRSP is maxed out for this year. I am seriously thinking about maxing out my TFSA instead (read my TFSA vs RRSP great debate over here) from now on, as I will expect to have defined benefit pension when I retire.
  • I owe about $16,000 to myself in my RRSP because I used the Home Buyers Plan, but I won’t have to start repaying until 2012.

OTHER INVESTMENTS: $2761 (-3%)

  • If you’re wondering what I hold in my Other investments- check out my post long story
  • I have some investments that were poor choices (I signed up for them before I became self “edumacated”) that were losing money big time. In order to receive a tax credit, I got persuaded into buying some flow through shares, Venture investments that gave out a tax credit, and some more mutual funds about four or five years ago.
  • Wow… this month, I was quite astounded as I checked my balance with this venture mutual fund. It went down by 13% in a period of 30 days, when the rest of the market didn't even drop that much! And I didn't even get a call or an email from the financial advisor I bought it from to perhaps explain why there has been such a big drop. I think I'll email her and see what she says. I guess this is another example of why managing your own money and choosing your own investments be it dividend stocks or index funds is the better way to go. Once I hit January 1, 2012 I’m going to move that money elsewhere ;)

TFSA: $6816 (-9.5%)

  • Um.. double OUCH.  The big loser was Sunlife, I am down $450 from my initial investment.
  • I haven't gotten off my butt to start a DRIP yet, I need to send some papers to Questrade to start that. The only reason why I haven't taken advantage of it earlier is because with Questrade, unlike other brokers, you don't get a discount on the DRIP.
  • Happy to report I finally got my butt in gear and sent off my request to start a DRIP with Questrade for EIF
  • I signed up for a Tax Free Trading Account with Questrade and my TFSA consists 100% of stocks
  • I have about $8,000 I can put back in this year to avoid the penalty from our good friends at the Canada Revenue Agency. We are allowed $5000 contribution a year-and this is year 3 of the TFSA, so one can have $15000 in their TFSA. I haven't contributed any extra to my TFSA account yet.
  • I haven't put any more money in, but I am thinking of selling some of my non-registered stocks and putting that money into the TFSA.

CAR:

  • I am not counting this in my net worth, because it's 11 years old.
  • I got a chip in my car windshield and it turned into a big crack (about the length of a hand).  I don't know how much it will roughly cost to repair the windshield.  Good thing its on the passenger side 🙂  My poor baby.

PRINCIPLE RESIDENCE: $387,500

  • I know this it does not make any sense to divide the principle residence and mortgage debt by 50%, but since I cannot disclose my boyfriend’s financial information, I will do it this way to simplify things. Some of you may not agree to that, and I understand.
  • Vancouver is an expensive city to live in, and many people predict that there will be a housing collapse, especially in a place where their is such a disparity between income and housing price. The Vancouver market was actually quite unscathed compared to the depressed housing markets elsewhere, and many people believe it is sorely due for a correction.
  • We plan to live in this house for 5-10 years or even more, and we are prepared to “suck it up” if it corrects by more than 25%. Our house is in a favourable location in the city, and our neighbours have sold recently for about 30% more than what we paid for our house.

LIABILITIES:

Mortgage Debt: $302,593 (-0.3%)

  • It’s an accelerated bi-weekly payment (-4 years from amortization) and we plan to add on what we get from our rental downstairs to pay the mortgage off faster. Target pay off= 15-17 years. The rental has not started yet, perhaps we may be looking at renting it out in September. or basically whenever haha.

Credit Card: $1139

  • I bought some text books for school (most of them through Amazon.com and not Amazon.ca because we still get gypped even though our dollar is slightly higher) and it cost me $750.  This is for the first term of school.  FML.
  • Last month, I had to balance four credit cards which was a bit overwhelming to say the least (now I know how one can get in trouble with credit cards!), the SPG Amex Card which was coming to and end (and officially ended), the Amex Gold Rewards Card, the MBNA card and the Joint Visa card. Now I'm back at three cards which is much more manageable 🙂
  • I pay off my full amount every month (and folks, it’s VERY important you do so otherwise you’re losing out on a 19% return!) but include it in my net worth update so I have an accurate picture of my actual net worth. I sort of think “If I were to sell everything right now, what would my net worth be?” I guess I shouldn't put it in the liabilities column since i pay it off regularly, BUT in mint.com it's under the liability column so I'll do the same.
  • I basically charge everything to my card to reap the benefits (free flights and hotel stays here I come!)
  • BF and I got the Royal Bank Avion Infinite Card as our joint credit card (free for one year since we have a mortgage with RBC! So will be using it and letting you how I like it- I would of course never pay $170 a year for this, but since it’s free for one year, why not?)
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Young is a writer and former owner of Young and Thrifty and the main "twitter' behind Young and Thrifty's twitter account. She lives in Vancouver, BC and enjoys long walks on the beach, spending time with her anxious dog, and finding good deals. If you like what you read, consider signing up for email updates.

21 Comments

  1. retirebyforty on August 8, 2011 at 10:10 am

    I hate doing net worth when the market is down too. It’s a little depressing so I tend to avoid it until things improve a bit. Today is another down day. 🙁



  2. World of Finance on August 8, 2011 at 5:15 pm

    Nice breakdown. Brought to you by the colour OUCH 🙁 I looked at my portfolio as well and have the same feelings, but my objective with my current investments are more longer term so I try not to dwell on it too much. On a positive note, stocks will now be on sale. 🙂



  3. The Wealthy Canadian on August 8, 2011 at 7:43 pm

    Don’t be discouraged that it’s in the red. Anybody who has their portfolio exposed to the markets will likely notice dips in their respective portfolio values. Imagine what things will look like by the end of August! 🙂

    Besides, you’re in it for the long-run, right? I’m focused more on looking for bargains right now. I glanced at one of my non-registered accounts in terms of portfolio value and quickly logged out because I noticed the dip.

    Keep up the great work!



  4. FinEngr on August 9, 2011 at 9:00 am

    Your cash went up & you’ve saved for your lifelong dream already – what else can you ask! Don’t worry about all the RED – just another day at the roulette wheel known as the markets 😉



  5. Leigh on August 9, 2011 at 7:34 am

    Ouch, indeed! But at least we are in it for the long run, right? It is definitely a little scary to look at my portfolio as well, but I know it will bounce back eventually and I don’t need to retire for at least another twenty years. 🙂



  6. Etienne on August 9, 2011 at 11:46 am

    there is no loss unless you sell.

    it’s all paper losses (or gains).

    The only real losses are the interest paid and expenses.. the rest are only virtual.



  7. T.M @ My University Money on August 9, 2011 at 1:51 pm

    As my post tomorrow will tell you, don’t be sad about the market being down, get excited instead! I just wish I had more capital to play with. The next year or so (if the USA doesn’t do Q3) could be one of the greatest buying opportunities of our lives! You’ll have many more months to look at black numbers, double down that bet on Sunlife, look at the fundamentals, how can you lose long term?



  8. My Own Advisor on August 9, 2011 at 5:43 pm

    Just like my buddy TWC said, don’t stay down on this.

    You’re in it for the long-run, just like all of us, and we all have ‘down’ months. Such is life. Stay focused and positive, but that’s what you do right? 😉



  9. young on August 11, 2011 at 9:03 am

    @retirebyforty- I make it a rule for myself to always do my networth after the first Friday of the month, so I can’t really escape it 🙂 Today was an up day!! It’s like a roller coaster. I did take some action and moved a non registered dividend stock into my registered stock (haha no more capital gains to worry about for that one!)



  10. young on August 11, 2011 at 9:04 am

    @World of Finance- That’s how I look at it too! Except I don’t have the money to buy on sale (or money that I want to give up, that is!). Thats why I think it’s always good to have some extra money in our stock accounts so we can buy during times like these.



  11. young on August 11, 2011 at 9:05 am

    @The Wealthy Canadian- My TFSA isn’t doing very well at all, but I’m taking this as an opportunity to buy more– trying to find the cash for it. That means more dividends comin’ my way for an even bigger annual yield. Woohoo! (that is unless they decide to slash their dividends haha)



  12. young on August 11, 2011 at 9:06 am

    @Leigh- Yes for sure 🙂 Sometimes I switch between going at it for the long run and trying to chase gains etc. I think if I put my nonregistered portfolio and transfer it into my retirement or TFSA this should probably help that problem! 🙁



  13. young on August 11, 2011 at 9:07 am

    @FinEngr- LOL I sound like a spoiled brat don’t i? I’m not worried really, but I appreciate all the positive energy and thoughts. I’m halfway saved for my lifelong dream, so I’m getting there 🙂



  14. young on August 11, 2011 at 9:07 am

    @Etienne- That’s true of course 🙂



  15. young on August 11, 2011 at 9:09 am

    @My University Money- I am quite excited except I don’t have as much capital to play with either! Yeah, the dividend yield on Sunlife is great now! All the dividend yields are fantastic and that’s something to get excited about. I’m trying to see where I can get some extra money to inject into my portfolios 🙂 maybe I’ll look under my couch tonight. 😉



  16. young on August 11, 2011 at 9:11 am

    @My Own Advisor- I stay positive and focused? Haha, I guess so. That’s for the encouragement! I’m quite excited about this actually. It’s just sometimes worrisome because you never know how “low” it will go. But I always told myself that after 2009 if something like that happened again, I would take advantage of it the best I can. So here is our second chance, I suppose!



  17. Ben on August 11, 2011 at 4:40 pm

    Wow, I hope I can improve my net-worth to that while I am still in my twenties. I have a Roth and taxable account but they are meager in comparison to my current $18000 in student loans w/ another 20,000 coming for a one year masters in accounting.

    Do you notice that you became more successful at growing you net worth when you publish it monthly? I am looking to do the same on my blog to show people that I have my own financial fight.



  18. young on August 11, 2011 at 10:45 pm

    @Ben- I think that being accountable and publishing it online has definitely be instrumental with increasing my net worth. Sometimes writing it down for myself in a book has been helpful. It just adds awareness and helps with the goal setting. However, there are drawbacks to sharing so much information online, of course! I know not many bloggers seem to do it as it just seems like a lot of information shared in the internet world. 🙂



  19. The Wealthy Canadian on August 12, 2011 at 5:57 pm

    @Y&T: I think your recent TFSA top up by going with SLF was a good move in that I think their dividend is very safe. With a market cap of over $15 billion and a company that employs over 7,000 people, you’ve got a position in a company that ‘s been in business for 140 years. You can park it and not look at it for years IMO.

    Although I’m not overly familiar with EIF, it does look interesting in a sense that it’s operating in two niche markets – aviation and specialty manufacturing. Despite the generally smaller market cap, the long-term chart looks solid. Seems like you may have a good catch here.

    The beauty of having dividend and distribution paying stocks in your TFSA is watching the value grow, especially if you keep the income earned within your account.

    I bought Fortis within my TFSA and I don’t pay a lot of attention to it because it’s such a long-term play. My wife and I decided to use the investments in our RESP and TFSA accounts for our kid(s) education, so we’re looking at a period of probably 15 years before I touch it!



  20. young on August 20, 2011 at 1:10 pm

    @The Wealthy Canadian- I love the idea of dividend (stable) stocks in the TFSA. I just moved my BMO shares from my non-registered to my TFSA too. Looking to fill my years TFSA quota with some non-registered. Thanks for your input and I will definitely be adding to my shares. 🙂



  21. The Wealthy Canadian on August 21, 2011 at 12:15 pm

    No sweat! I think it’s a good idea to switch your BMO position into your TFSA until it’s maxed out. With the market conditions in recent weeks, you may have also been able to get a good exit and entry point.

    Good stuff! 🙂



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