Comments on: November 2008 Net Worth Update (-1.59%)

By: rkw

rkw — Mon, 15 Dec 2008 03:34:41 +0000

This tracking is interesting but your net worth is too much in illiquid real estate and vulnerable to the housing market vagaries. In addition, you are talking about adjusting the r/e values higher based on inflation. For those tracking their net worth, I’d suggest focusing on non real estate. A property is only worth what someone will pay-and you won’t know until you try selling. With stocks and bonds, not only are they liquid, but they are a better assessment of net worth. That’s why most firms and banks, etc rely on your net worth other than your principal residence. I’d be more impressed if your net worth was increasing due to your investment acumen with stocks and bonds, I would like to see an 11% rise based on liquid investments, not illiquid investments. The goal should be $1,000,000 in totally liquid assets in addition to R/E. Good Luck

By: Tyler

Tyler — Sat, 13 Dec 2008 17:21:16 +0000

My equity portfolio is down 62% However, I’m 22. I invested in oil as it was going up (around 140)… made a mistake… I’m going to do some dollar-cost-averaging ASAP =).

MoneyMinder:
I also grabbed Citigroup; if you have low-tolerance for risk I’d suggest not doing US financials. I watched Citigroup almost collapse around $3 in about a week. Scary ordeal, but it seems the US govt won’t allow some financial institutions to fail. They just keep pouring more money in. Also, I’m going to do some dollar cost-averaging here too.

Here’s a plug;

I’m currently reading “the intelligent investor”; it’s a great book. Especially if you have a 100% common-stock portfolio ;-)

By: http://resourcesandmoney.blogspot.com

http://resourcesandmoney.blogspot.com — Tue, 09 Dec 2008 14:21:24 +0000

You are almost near to a million dollar. Keep it up. But the market is not helping you. It’s bringing us all down.

By: Millionaire Acts

Millionaire Acts — Thu, 04 Dec 2008 00:20:14 +0000

Hi, I’ve been following your blog. And started a new blog with the same networth updates every month just like yours. We’re all a victim in one of the worst financial crisis. Hopefully, the sun would shine soon.

By: Jack

Jack — Tue, 02 Dec 2008 20:11:33 +0000

Hey FT – I was wondering about your pension. I’ve noticed it hasn’t changed at all over the past several months. Is it a defined contribution pension or defined benefit?

I have a defined contribution pension and it changes in value with the stock market (it’s essentially an extra RRSP that my employer and me contribute to). How do you value yours?

By: Kathryn

Kathryn — Tue, 02 Dec 2008 18:34:29 +0000

Our net worth is down 11.87% since December 2007. Yikes! We’re in our late 30’s and our RRSP’s took a huge hit this year.

By: vilkri

vilkri — Tue, 02 Dec 2008 16:15:42 +0000

Sorry all! I did not know that you lived in an area with a strong economy. I thought this blog was written by a US resident. – I have never been to Newfoundland. My horizon has not expanded that far yet. (Taking a look at it from the plane on the way to or from Europe does not count, does it now?) I hope to make it there soon. Ever since I met a family from St. John’s – very nice people – I have been curious about the area.

By: Sarlock

Sarlock — Tue, 02 Dec 2008 06:19:16 +0000

Eeesh, good thing the month end net worth cut off date was at the end of last week’s stock market rally and not after today’s collapse!
On the flip side, some attractive dividend-yielding stocks got cheaper.

By: Rocket Spanish

Rocket Spanish — Tue, 02 Dec 2008 04:40:29 +0000

You have done very well in a year where stocks have gone down like they have, it means when stocks starts to go up you stand to gain a lot. Good luck

By: FrugalTrader

FrugalTrader — Tue, 02 Dec 2008 03:49:09 +0000

Dan, I am a compulsive cash hoarder. As I have my RRSP maxed out, some of the cash would be better off paying down my mortgage. On the other side of the coin though, with rates in dropping mode (maybe 0.50% drop on Dec 9) in addition to a discounted variable mortgage, paying down the mortgage may not offer the best return.

I’m personally a big fan of the high interest rate savings accounts as they offer a competitive interest rate along with flexibility to withdraw whenever you please.

By: Dan Jensen

Dan Jensen — Tue, 02 Dec 2008 02:50:28 +0000

FT how did you decide on how much to keep for the savings account?
I am looking at doing the same but at 1/3rd of the price, my main reason is in the event of unemployment…
I plan on using my spouse to hold the account as she has a lower tax bracket. Would you suggest using a High rate savings account or somethings else? possible a mix of GIC and savings account?

thanks for the advice

By: 17th Avenue

17th Avenue — Tue, 02 Dec 2008 02:39:30 +0000

You are doing great! With the recent stock market tumbling, I am down 2.37%. If not those shorts, my net worth will probably down even more. I guess rental properties as a secondary income resource did provide some cushion for the difficult time. Again, great job!

By: MoneyGrubbingLawyer

MoneyGrubbingLawyer — Tue, 02 Dec 2008 01:18:44 +0000

Another impressive month, FT.

We’re actually up slightly for November- 1.1%. I wish I could offer a decent explanation beyond dumb luck! With current real estate values around here (and the recent sale of 2 comparable houses on my street for a lot more than I would have expected), I’ve been itching to bump up my valuation so that I can show some big gains when everything else is tanking, but I’m resisting the temptation… for now.

By: FrugalTrader

FrugalTrader — Tue, 02 Dec 2008 00:12:00 +0000

Sorry for lack of comments recently folks, work has been hectic.

Nobleea, Yes, you are right, I should update my car values soon. I think the last update was a few months ago.

Vilkri, our local economy has done the opposite since 2006, it has gone up by 20% +. So our real estate values are actually worth much more than what is reported.

Reverend, I am jealous. :)

Thanks for the comments guys!

By: The Reverend

The Reverend — Mon, 01 Dec 2008 23:53:00 +0000

Friday’s rally helped me finish slightly in the black for November but far from catching up on what was lost in September and October.

By: DAvid

DAvid — Mon, 01 Dec 2008 21:49:19 +0000

Vilkri,
Possibly you should expand your horizons? I believe Frugal Trader’s valuation to be conservative.

Newfoundland Housing Market

DAvid

By: Sampson

Sampson — Mon, 01 Dec 2008 19:59:56 +0000

I think you are doing great. If you compare your numbers with the general market, this is evidence that your strategy does work. As you know, among the many reasons to have such a heavy focus towards good dividend stocks is lowering downside risk, and you’ve obviously done that.

If you are finding your risk tolerance not as high as previously thought, maybe now is a good time to increase fixed income allocations. I think its great you are still 11.5% on the upside for the year, this last month just moved me into the negative :(

Keep positive, keep buying, and we’ll all ride this out eventually.

By: Brandon

Brandon — Mon, 01 Dec 2008 18:13:21 +0000

If you have one more month of negative growth, are you in a recession? :)

By: Sarlock

Sarlock — Mon, 01 Dec 2008 17:54:00 +0000

My net worth has performed similarly over the last few months. Stock holdings are down significantly, but I am buying more with excess cash flow from monthly income flows. Overall, I am down about 10% for the year, more due to the depreciation in my house value (which I have been unsuccessfully trying to sell for 6 months) than the stock market (the net worth losses have been offset by aggressive buying).

By: Dividend Growth Investor

Dividend Growth Investor — Mon, 01 Dec 2008 17:08:46 +0000

I agree with the Money Gardener that now is a good time to start accumulating solid dividend stocks or going into index funds.

Even if we are in the “next” Depression we are not going to fall a lot more from current levels..