Comments on: October 2008 Net Worth Update (-0.26%) http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm Building Wealth through Saving and Investing Wed, 17 Mar 2010 05:42:34 -0400 http://wordpress.org/?v=abc hourly 1 By: DAvid http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-62582 DAvid Mon, 01 Dec 2008 16:21:41 +0000 http://www.milliondollarjourney.com/?p=685#comment-62582 Jeanette, You may wish to drop by Canadian Capitalist's site, and review the comments there about the use of portfolios based on index funds, an less expensive alternative to actively managed funds. DAvid Jeanette,
You may wish to drop by Canadian Capitalist’s site, and review the comments there about the use of portfolios based on index funds, an less expensive alternative to actively managed funds.

DAvid

]]> By: Jeanette - single mom http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-62542 Jeanette - single mom Mon, 01 Dec 2008 07:16:12 +0000 http://www.milliondollarjourney.com/?p=685#comment-62542 I am fortunate to have worked hard in real estate and saved a substantial amount of my own money before I found myself a single mom. Watching how fast money can disappear is rather frightening. My portfolio to date has decreased by almost $350,000 ...not just from this dramatic correction...but from poor choices in brokers and investments throughout the years. I was always able to 'earn' money...but unable to manage and invest it. While I understand a great deal about the investment process and tax consequences and seek advice ongoingly...I still find myself overwhelmed. I obviously do not have the aptitude to understand this arena even after taking college courses and attending seminars. I always hoped to have a partner that could shore up my weaknesses...but that may not be real life...so I end up having to hand my portfolio over to strangers who take even less care...motivated by commissions perhaps. Having said that...I still own my home $400K, have about 150K in savings and a few stocks, what is left of 60K in mutual funds (down to about 45 I think), 60K in second mortgages, 23K in RRSP and few dollars here and there. I would like to know what program you use to track your investments...and keep your books up to date...and what action you would take to get help on investment decisions and management...without giving away the farm! I'm ready for a fresh approach and have signed up for your blog...committing to read everything possible...what are the logical steps to take to invest safely. I have some ideas...but would love some support. I am fortunate to have worked hard in real estate and saved a substantial amount of my own money before I found myself a single mom. Watching how fast money can disappear is rather frightening. My portfolio to date has decreased by almost $350,000 …not just from this dramatic correction…but from poor choices in brokers and investments throughout the years. I was always able to ‘earn’ money…but unable to manage and invest it. While I understand a great deal about the investment process and tax consequences and seek advice ongoingly…I still find myself overwhelmed. I obviously do not have the aptitude to understand this arena even after taking college courses and attending seminars. I always hoped to have a partner that could shore up my weaknesses…but that may not be real life…so I end up having to hand my portfolio over to strangers who take even less care…motivated by commissions perhaps. Having said that…I still own my home $400K, have about 150K in savings and a few stocks, what is left of 60K in mutual funds (down to about 45 I think), 60K in second mortgages, 23K in RRSP and few dollars here and there. I would like to know what program you use to track your investments…and keep your books up to date…and what action you would take to get help on investment decisions and management…without giving away the farm! I’m ready for a fresh approach and have signed up for your blog…committing to read everything possible…what are the logical steps to take to invest safely. I have some ideas…but would love some support.

]]> By: Millionaire Acts http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-62233 Millionaire Acts Fri, 28 Nov 2008 10:03:30 +0000 http://www.milliondollarjourney.com/?p=685#comment-62233 Wow! I think I will imitate you with the way you update your networth. By the way, I thought of registering this domain when I was about to start my blog. ;) Wow! I think I will imitate you with the way you update your networth. By the way, I thought of registering this domain when I was about to start my blog. ;)

]]> By: Julie http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59430 Julie Tue, 04 Nov 2008 01:42:47 +0000 http://www.milliondollarjourney.com/?p=685#comment-59430 I'm looking at your $4500 in cash in chequing accounts. I agree that a good relationship with a real banker is important, but I balk at the notion of keeping so much money tied up doing nothing. If you look at the big banks, many of them offer "no fee" accounts - where you pay per transaction. Since you use PCF, you don't need to make many transactions at a real bank. I'm sure you've done your homework, and perhaps there are other considerations, but $4500 seems like a high balance to maintain. I’m looking at your $4500 in cash in chequing accounts. I agree that a good relationship with a real banker is important, but I balk at the notion of keeping so much money tied up doing nothing. If you look at the big banks, many of them offer “no fee” accounts – where you pay per transaction. Since you use PCF, you don’t need to make many transactions at a real bank. I’m sure you’ve done your homework, and perhaps there are other considerations, but $4500 seems like a high balance to maintain.

]]> By: Scott http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59245 Scott Sun, 02 Nov 2008 15:19:18 +0000 http://www.milliondollarjourney.com/?p=685#comment-59245 Didn't know where else to post this, but when FT says "For the first time since I started reporting my net worth...I am reporting negative net worth growth" (remember, his first name is FRUGAL!), I would say anyone who has contact with money will feel the bite of the economic crisis. I read this article -- http://ca.news.finance.yahoo.com/s/01112008/24/f-afp-iceland-protestors-seek-government-resignation-crisis.html -- and am completely baffled as to why NO Americans have taken a similar stance in their own country where this mess originated? Are American citizens that complacent towards the "criminal" actions of their government and banks, even in the face of loosing 50% of their life savings and/or their home and/or their job? Bizarre. Didn’t know where else to post this, but when FT says “For the first time since I started reporting my net worth…I am reporting negative net worth growth” (remember, his first name is FRUGAL!), I would say anyone who has contact with money will feel the bite of the economic crisis.

I read this article — http://ca.news.finance.yahoo.com/s/01112008/24/f-afp-iceland-protestors-seek-government-resignation-crisis.html — and am completely baffled as to why NO Americans have taken a similar stance in their own country where this mess originated? Are American citizens that complacent towards the “criminal” actions of their government and banks, even in the face of loosing 50% of their life savings and/or their home and/or their job? Bizarre.

]]> By: DAvid http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59243 DAvid Sun, 02 Nov 2008 15:17:50 +0000 http://www.milliondollarjourney.com/?p=685#comment-59243 Chris, Sorry, I misread your comment. Please disregard my question. DAvid Chris,
Sorry, I misread your comment. Please disregard my question.

DAvid

]]> By: FrugalTrader http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59195 FrugalTrader Sun, 02 Nov 2008 11:08:51 +0000 http://www.milliondollarjourney.com/?p=685#comment-59195 Chris, before I started the SM, I sold off the majority of my non-reg account. I was planning on selling off the remaining soon, but with the current market, it may be a while before I sell them off. However, if I have any capital gains payable this year, I may sell some of them off to claim the loss. Chris, before I started the SM, I sold off the majority of my non-reg account. I was planning on selling off the remaining soon, but with the current market, it may be a while before I sell them off. However, if I have any capital gains payable this year, I may sell some of them off to claim the loss.

]]> By: MultifolDream$ http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59154 MultifolDream$ Sat, 01 Nov 2008 22:29:05 +0000 http://www.milliondollarjourney.com/?p=685#comment-59154 Good results in a tough month! Good results in a tough month!

]]> By: DAvid http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59142 DAvid Sat, 01 Nov 2008 19:31:27 +0000 http://www.milliondollarjourney.com/?p=685#comment-59142 Chris, Could you describe the financial advantage you see in taking the steps you have suggested? DAvid Chris,
Could you describe the financial advantage you see in taking the steps you have suggested?

DAvid

]]> By: Chris http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59137 Chris Sat, 01 Nov 2008 17:39:24 +0000 http://www.milliondollarjourney.com/?p=685#comment-59137 Hey FT - I was wondering if you ever planned to liquidate your non-registered portfolio, put the cash against your mortgage, and then buy back the stocks in your Smith Manoeuvre account? Hey FT – I was wondering if you ever planned to liquidate your non-registered portfolio, put the cash against your mortgage, and then buy back the stocks in your Smith Manoeuvre account?

]]> By: Dividend Growth Investor http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59031 Dividend Growth Investor Fri, 31 Oct 2008 13:38:58 +0000 http://www.milliondollarjourney.com/?p=685#comment-59031 Ok that makes sense. I didn't think about the cash :-) I guess the cash portion has outperformed the market by 20%.. It's funny to say it but my savings account has outperformed the S&P 500 for the past 10 years :-( Ok that makes sense. I didn’t think about the cash :-) I guess the cash portion has outperformed the market by 20%.. It’s funny to say it but my savings account has outperformed the S&P 500 for the past 10 years :-(

]]> By: Sam Li http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-59015 Sam Li Fri, 31 Oct 2008 11:36:22 +0000 http://www.milliondollarjourney.com/?p=685#comment-59015 Cannon-fodder, You always can dispute the assessment, you have legal right to do so. Cannon-fodder,
You always can dispute the assessment, you have legal right to do so.

]]> By: DAvid http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58958 DAvid Fri, 31 Oct 2008 02:57:38 +0000 http://www.milliondollarjourney.com/?p=685#comment-58958 Cannon-fodder, According to my sister, St. John's has a very arbitrary means of calculating assessment values which is completely unrelated to expected sale price. As such, it is impossible to use the assessment to calculate the real value of your home. I recall that for many years, Mayor Wells prided himself on keeping the mil rate unchanged -- the city adjusted everyone's assessment values to meet the need for $$$$, regardless of the economic state of the housing market. DAvid Cannon-fodder,
According to my sister, St. John’s has a very arbitrary means of calculating assessment values which is completely unrelated to expected sale price. As such, it is impossible to use the assessment to calculate the real value of your home. I recall that for many years, Mayor Wells prided himself on keeping the mil rate unchanged — the city adjusted everyone’s assessment values to meet the need for $$$$, regardless of the economic state of the housing market.

DAvid

]]> By: cannon_fodder http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58953 cannon_fodder Fri, 31 Oct 2008 02:08:17 +0000 http://www.milliondollarjourney.com/?p=685#comment-58953 FT, How much difference (percentage wise) does your tax assessment value your home from what value you assign it? We recently received our new tax bill and for the first time it assessed it at a value higher than we did (in fact, we had to have our house appraised for renewing our mortgage). Usually the tax company came in 5-10% lower but this time they were a good 10% higher. Fortunately, they are "phasing" in the assessment over 4 years. In other words, they put a value on our house beginning Jan 1, 2008 but will only accrue the uplift in 25% increments per year. As a result, we probably will see our property tax decrease again. Nice! FT,

How much difference (percentage wise) does your tax assessment value your home from what value you assign it? We recently received our new tax bill and for the first time it assessed it at a value higher than we did (in fact, we had to have our house appraised for renewing our mortgage).

Usually the tax company came in 5-10% lower but this time they were a good 10% higher. Fortunately, they are “phasing” in the assessment over 4 years. In other words, they put a value on our house beginning Jan 1, 2008 but will only accrue the uplift in 25% increments per year. As a result, we probably will see our property tax decrease again. Nice!

]]> By: nobleea http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58915 nobleea Thu, 30 Oct 2008 17:29:13 +0000 http://www.milliondollarjourney.com/?p=685#comment-58915 I know its difficult to include real estate (or primary household) in net worth, but really you have to. would you not include the mortgage against it in the liabilities section, what about a HELOC (that was used for 'recreation' or used for investing). I know its difficult to include real estate (or primary household) in net worth, but really you have to. would you not include the mortgage against it in the liabilities section, what about a HELOC (that was used for ‘recreation’ or used for investing).

]]> By: FrugalTrader http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58911 FrugalTrader Thu, 30 Oct 2008 17:08:38 +0000 http://www.milliondollarjourney.com/?p=685#comment-58911 Yes, I can see how yesterday's post and today's post regarding the SM portfolio values can seem a bit off. The explanation is simple, yesterdays post just included my equities, but didn't include cash. I transferred $50k to my discount brokerage from my HELOC at the beginning, which means that I still have a significant amount of cash sitting in my discount brokerage waiting to be deployed. Mike, when I sold my house last time it was pretty much spot on as the market at that time was very predictable. Right now though, the markets are in skyrocket mode, so i'm hesitant to use current market values as I feel that they will correct. If I was to use current market values, I could easily add 10% onto my current valuation and still be on the low side. Going forward, I will remain conservative in my primary residence valuations. Yes, I can see how yesterday’s post and today’s post regarding the SM portfolio values can seem a bit off. The explanation is simple, yesterdays post just included my equities, but didn’t include cash. I transferred $50k to my discount brokerage from my HELOC at the beginning, which means that I still have a significant amount of cash sitting in my discount brokerage waiting to be deployed.

Mike, when I sold my house last time it was pretty much spot on as the market at that time was very predictable. Right now though, the markets are in skyrocket mode, so i’m hesitant to use current market values as I feel that they will correct. If I was to use current market values, I could easily add 10% onto my current valuation and still be on the low side. Going forward, I will remain conservative in my primary residence valuations.

]]> By: Four Pillars http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58910 Four Pillars Thu, 30 Oct 2008 17:00:08 +0000 http://www.milliondollarjourney.com/?p=685#comment-58910 I've always thought that real estate was too difficult to appraise to include in a net worth statement. I can't remember if I asked you this before but when you sold your old house - how did the net amount compare to the estimation you were using in your networth calculation? Mike I’ve always thought that real estate was too difficult to appraise to include in a net worth statement.

I can’t remember if I asked you this before but when you sold your old house – how did the net amount compare to the estimation you were using in your networth calculation?

Mike

]]> By: Deb http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58902 Deb Thu, 30 Oct 2008 15:01:32 +0000 http://www.milliondollarjourney.com/?p=685#comment-58902 Regarding your Smith Manouver portfolio, I'm little bit confused. In your yesterday's update you stated your total cost base to be $30,500 and today's post says HELOC Balance is $51,200. Did you buy anything worth $21,000 in between. Just curious. It might not be a bad idea to buy now, but high leaveraging is looking very risky. Regarding your Smith Manouver portfolio, I’m little bit confused. In your yesterday’s update you stated your total cost base to be $30,500 and today’s post says HELOC Balance is $51,200. Did you buy anything worth $21,000 in between. Just curious. It might not be a bad idea to buy now, but high leaveraging is looking very risky.

]]> By: Sam Li http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58900 Sam Li Thu, 30 Oct 2008 14:55:32 +0000 http://www.milliondollarjourney.com/?p=685#comment-58900 MDJ, keep it up you are doing good! If I may, offer my thoughts regarding property value… Definitely MLS is a great source for property estimation if you are planning to sell it in a near future. But if we are talking about long term ownership I would stick MPAC reports, as a property owner you should receive them periodically. The value of your property is used to calculate property taxes. This combination is quite important if you don’t have plans to sell it any soon and since the report is behind the market it’s a most conservative estimation. I have more details here http://www.householdstatement.com/post/2008/09/23/First-Entry.aspx MDJ, I’m not sure if I can post a link to my blog here but if it’s not common practice please let me know, I will avoid doing it in the future. Tnx. MDJ, keep it up you are doing good!
If I may, offer my thoughts regarding property value… Definitely MLS is a great source for property estimation if you are planning to sell it in a near future. But if we are talking about long term ownership I would stick MPAC reports, as a property owner you should receive them periodically. The value of your property is used to calculate property taxes. This combination is quite important if you don’t have plans to sell it any soon and since the report is behind the market it’s a most conservative estimation. I have more details here http://www.householdstatement.com/post/2008/09/23/First-Entry.aspx
MDJ, I’m not sure if I can post a link to my blog here but if it’s not common practice please let me know, I will avoid doing it in the future. Tnx.

]]> By: nobleea http://www.milliondollarjourney.com/october-2008-net-worth-update-026.htm/comment-page-1#comment-58899 nobleea Thu, 30 Oct 2008 14:50:42 +0000 http://www.milliondollarjourney.com/?p=685#comment-58899 The downside of using the MLS comps to value your house is that you have to take a hit when the market goes down. And it will. Then it's quite painful to watch your networth drop every month by considerable amounts. The downside of using the MLS comps to value your house is that you have to take a hit when the market goes down. And it will. Then it’s quite painful to watch your networth drop every month by considerable amounts.

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