Comments on: April 2008 Net Worth Update (+1.65%)

By: marc warnke

marc warnke — Mon, 12 May 2008 03:51:18 +0000

I’m new to the site, I’ve enjoyed what I read so far. I need a little more info to comment intelligently. Looking forward to more reading time I have a new little one as well.

By: FFBlog.ca

FFBlog.ca — Mon, 05 May 2008 16:38:08 +0000

Great job on the net worth updates! I really enjoy your blog and wish you the best in achieving your goals!

FFBlog.ca

By: FrugalTrader

FrugalTrader — Thu, 01 May 2008 12:36:37 +0000

Al, the $4500 is a “little” higher than the required amount. However, it does take into consideration 2 separate bank accounts. One for me, and one for my wife.

By: Al

Al — Thu, 01 May 2008 12:31:25 +0000

Cannon_fodder,

I have the same account and the same plan with it. I didn’t realize that the min balance on new accounts had gone so high ($4500!).

By: Cannon_fodder

Cannon_fodder — Thu, 01 May 2008 02:10:10 +0000

I have a very old TD Chequing account that still allows me free banking with a minimum balance of $1,000. In the words of Rick Astley (sung by who knows?), “Never gonna give you up…”

By: Cash Instinct

Cash Instinct — Thu, 01 May 2008 00:39:40 +0000

Thanks for the answer FrugalTrader. It makes sense to keep your cash at the minimum level for the account and to keep cash aside for a future liability payment coming.

I don’t remember seeing whether or not you calculated that your chequing account would cost you more than the interest that could be generated yearly on $4,500. It depends of the services you use with the bank. This could be something interesting to analyze in a future article and compare the different chequing accounts available in Canada.

Personally, since I am a student at a university affiliated with a specific bank, I get free banking with no minimum amount and no restrictions, great stuff…. it will get more complicated when I will graduate!

By: FrugalTrader

FrugalTrader — Thu, 01 May 2008 00:25:29 +0000

Hey Cash Instinct,

The $4500 cash amount is the min amount that our chequing accounts require for free banking, everything else goes to savings/investing or paying bills. Yes, we have a habit of having a large balance in savings. A portion is for a rather large cash liability coming, and the other portion is either an emergency fund or will be deployed for other investments. Some of it will be deployed into the mortgage shortly.

By: Cash Instinct

Cash Instinct — Wed, 30 Apr 2008 23:18:38 +0000

It seems this month is the month where you are asked many questions about your net worth results.

I looked at many months and your cash is always at $4,500. Do you invest everything that is above $4,500 just before doing your net worth update, or is it an approximation?

I have also the same question about your savings accout number. Is it a large emergency fund?

By: Finance_Addict

Finance_Addict — Wed, 30 Apr 2008 20:30:57 +0000

Love your site. I am in an almost identical demographic as you (age, profession, one 16 month old with another on the way in August etc) May I ask what exactly what your savings account is for? and why do you keep a fairly high balance? Would you rather not do lump sums off the mortgage or RRSP contributions etc?

By: Canadian Capitalist

Canadian Capitalist — Wed, 30 Apr 2008 19:16:44 +0000

Yeah, it’s nice to see the markets recover a little bit. But, I agree that while it would be painful in the short run, falling markets are better for building long-term wealth.

By: Cannon_fodder

Cannon_fodder — Wed, 30 Apr 2008 17:23:04 +0000

Moneygardener – “…newborn in toe…” – is that a reference to “This little piggy goes to market”? ;-)

By: FrugalTrader

FrugalTrader — Wed, 30 Apr 2008 16:31:48 +0000

Thanks for the feedback guys. Reverend, I use the Canadian Black Book and use the lower appraised value.

By: The Reverend

The Reverend — Wed, 30 Apr 2008 16:04:44 +0000

FT, how do you calculate the value of your vehicles each month? We financed our car because the interest rates were low, but I hesitate to put it on our net worth statement (assume value of vehicle = outstanding balance). I’m somewhat conservative since we have a short amortization period (life of car > finance period, knock on wood), but it still doesn’t seem like much of an asset, even once its paid off.

By: ETF Income

ETF Income — Wed, 30 Apr 2008 15:51:21 +0000

Seems like your “Smith Manoeuvre Investment Account” is doing quite well, positive cash flow over the interest paid.

By: Dividend Growth Investor

Dividend Growth Investor — Wed, 30 Apr 2008 14:47:39 +0000

Good job Frugal Trader!
I hope the SPX moves above 1400 so that we can get some nice capital gains along with the dividends.. This should lift global markets…

By: moneygardener

moneygardener — Wed, 30 Apr 2008 13:19:59 +0000

Great progress with a newborn in toe, and also the YTD numbers looks solid. I always enjoy your nw updates.

By: FrugalTrader

FrugalTrader — Wed, 30 Apr 2008 12:15:36 +0000

FP, i’m hoping for one more correction so that I can top up my portfolio. :)

By: Four Pillars

Four Pillars — Wed, 30 Apr 2008 11:44:59 +0000

Yah, the cash gifts come in handy – much better than the cute little dress up outfits with shoes (which will NEVER get worn).

It’s nice to see the market rebound – and by markets, I mean the Canadian financials… :)

Will it last?