Nov 2009 Net Worth Update (+1.65%)
Welcome to the Million Dollar Journey Nov 2009 Net Worth Update
It’s almost the end of 2009 and my net worth growth (along with many others) has been on a steady climb over the months. Most of the gains this year has been from rapidly appreciating equity markets since March 2009, strong income and, most importantly, savings. Providing that the markets stay the course through December, our family net worth will be within striking distance of the $400k threshold. Still a ways to go until the $1 million milestone but movement in the right direction none the less.
Looking at the most recent net worth update below, this past month was especially strong for savings. This increase was due to my wife receiving a bonus along with a change in my tax liability calculations (behind the scenes). We had another large drop in my non-registered account due to a volatile penny stock that I own. Although most of my equity is invested for the long term, I like to set aside some “play” money to take a few chances.
On to the numbers:
Assets: $ 474,550 (+0.86%)
- Cash: $4,500 (+0.00%)
- Savings: $21,500.00 (+30.30%)
- Registered/Retirement Investment Account: $74,000.00 (+0.27%)
- Pension: $27,850.00 (+0.54%)
- Non-Registered Investment Account: $15,700.00 (-4.85%)
- Smith Manoeuvre Investment Account: $52,000.00 (+0.97%)
- Principal Residence: $275,000 (+0.00%) (purchase price)
- Vehicles: $4,000 (2 vehicles) (-20.00%)
Liabilities: $83,200.00 (-2.69%)
- Tax Liability: $3,000 (-0.00%)
- Principal Residence Mortgage (readvanceable): $26,800.00 (-8.22%)
- HELOC balance: $53,400 (+0.19%)
Total Net Worth: ~$391,350.00(+1.65%)
- Started 2009 with Net Worth: $309,950.00
- Year to Date Gain/Loss: +26.26%
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 despite significant appreciation in the real estate market that we’re in. I will most likely be adjusting the value of the home come the new year.
Basics of Investing, Carnival, and 6 Figure Income!
Basics: looking for help to start investing @ Canadian Money Forum
Carnival of Personal Finance Thanksgiving Survival Edition @ Fiscal Geek
Making a 6 Figure Income By Working Less than 50 hours a week Part 1: a Look at Your Job @ Financial Blogger
5 Reasons Why You Will Retire Broke and Unhappy @ Generation X Finance
Why Gold could be a Bubble @ Canadian Capitalist
Black Friday Inspired Shopping Strategies @ Digerati Life
7 Tips To Help You Stop Fighting Over Money @ Financial Highway
When Is It Time to Hire a Financial Planner? @ The Sun’s Financial Diary
Be Prepared With An Emergency Kit For Your Car @ Canadian Finance Blog
Why I Don’t Buy Digital Media @ Lazy Man and Money
Why You’re Wrong If You Think Gold at $2000/oz Is Unlikely… or Worse, Just a Bubble @ Money Energy
How to Fix Up Your Resume (guest post) @ Brip Blap
Is my severance tax deductible? @ Thicken My Wallet
5 Four-Letter Words You Should Be Using in Personal Finance @ Frugal Dad
I’m Ashamed of Being Wealthy @ Canadian Dream
Real Estate Short Sales Explained @ Money Smart Life
The Problem With Property Management @ Four Pillars
Plan and Budget for Holiday Spending @ My Dollar Plan
Tax Advantages of Segregated Funds versus Mutual Funds @ Where Does All My Money Go
Are Financial Advisors Worth 1% of Your Savings Each Year? @ Michael James on Money
Unlimited Chequing Accounts in Canada
There are a number of options for unlimited banking in Canada. These are a few from Canada’s most popular banks. I was disappointed to hear recently that citizensbank no longer offers a personal banking option. Share with us here if you know of other Canadian banks that offer unlimited free transactions or where it’s possible to have the fee waived.
| Name of Account | Monthly Fees | Notes | |
|---|---|---|---|
| Royal Bank of Canada | RBC No Limit Banking | $10.95 | Fees are waived with a multiproduct rebate. To qualify, an account holder must have a RBC Visa card, a mortgage or home equity loan and a qualifying investment. If the account holder is over 60 than they only need a RBC Visa card and a qualifying investment. |
| CIBC | Unlimited Chequing | $12.95 | |
| TD Canada Trust | TD Infinity | $12.95 | Fees are waived if a minimum balance of $3000 is kept throughout the entire month. |
| Scotiabank | Scotia One | $9.95 | Fees are waived if a minimum balance of $3500 is kept throughout the entire month. |
| Bank of Montreal | Performance Plan | $13.95 | Fees are waived if a minimum balance of $3000 is kept throughout the entire month. Youth, students and young adults pay $5.45 monthly fee. |
| Vancity | E-Package Chequing | $7 | Unlimited electronic banking. Only one free in person transaction per month. .70 cents for each additional in-branch transaction. Fees are waived if minimum of $1000 held in account. |
| President’s Choice Financial | No Fee Chequing Account | $0 |
I was surprised to see that CIBC is the only bank without any option to waive their fees. I even called their customer service line inquiring about this specific account. I asked if there was any way to have to fee waived, any multi-product discount or a minimum balance required. The representative apologized and said that no, it wasn’t possible to have the fee waived under any conditions with their unlimited chequing account.
What is even more surprising is that President’s Choice Financial is a division of CIBC. I bank with PC Financial and regularly use CIBC machines at no cost. When I put my card in, the screen on the ATM at CIBC welcomes me to President’s Choice Financial. I even deposit cheques and withdraw money at no charge from CIBC ATMs. Why is it then, that they can’t offer their own customers free banking?
I was also surprised to see how complicated eligibility is for the RBC No Limit Banking Account. I understand the idea of a multi-product rebate and agree that it encourages loyalty. I have our children’s RESP accounts at RBC and have a RBC Visa card. It makes me eligible for a multi-product rebate on their Day to Day Banking Account which would give me 15 transactions a month. In order to receive unlimited free transactions I would also have to hold a mortgage or equity line. Fifteen transactions a month is not enough for my daily banking needs.
There is so much information available easily online. I’m surprised with so many other options out there, banks can continue to charge such high fees when their competitors have other alternatives. I understand that some people like having a brick and mortar bank. Internet banking isn’t for everyone. I’ve always been happy with it but I know for the first few months using it, I was a little bit uncomfortable with the idea of virtual banking. It’s been over 10 years now, and I’ve never had an issue. I’ve even ordered bank drafts, deposited US cheques and used my debit card internationally, all without any issues.
If I were to choose a brick and mortar bank today, I would choose one where, for a minimum balance, I could have my monthly fee waived.
The types of people who read personal finance blogs are probably already pretty careful with their money. It wouldn’t surprise me if most Million Dollar Journey readers pay no fees for unlimited banking in Canada. What continues to surprise me is that hundreds of thousands if not millions of Canadians continue to pay these fees when there are other options.
If you are looking for banking options in Canada, you have a choice. If you’re unhappy with your current bank, it’s easy to switch.
Are there other Canadian banks you want to tell us about? Feel free to share in the comments.
Kathryn works in public relations and training for a non profit. In her off hours, she volunteers as a financial coach helping ordinary Canadians with the basics of money management. Her passions include personal finance and adult education. Kathryn, along with her husband and two children live in Ontario.
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