Comments on: Sept 2007 Net Worth Update (+2.27%)

By: FrugalTrader

FrugalTrader — Tue, 16 Oct 2007 11:11:37 +0000

Hey Peter, thanks for your feedback. We are currently building our next home, and we were looking to sell our existing home (already sold now). We “could” use the money to pay down the investment property, but that wouldn’t make much sense as that mortgage is tax deductible.

But yes you are right, in other scenarios paying down the mortgage would make much more sense than keeping cash in a taxable savings account.

By: peter brieger

peter brieger — Tue, 16 Oct 2007 00:17:18 +0000

Hi FT, question for you.. Would it not be wiser to pay down your existing mortgages instead of hoarding money? Depending on your mortgage rate would it make more sense to pay it down since i’m sure your after mortgage percentage is higher than 4.25%?

By: FrugalTrader

FrugalTrader — Sun, 30 Sep 2007 15:23:37 +0000

Hey MG! Great point, it’s definitely not a great place to invest your money especially after taxes. However, the reason why I keep such a high balance in there is because.. i’m a money horder. :) No, seriously, we’re in the process of building our next home, so we’re saving our cash for a larger down payment.

By: moneygardener

moneygardener — Sun, 30 Sep 2007 15:19:10 +0000

FT,

I am wondering what your rationale is for holding such a large amount of capital in a place that probably yields you 1.0% above inflation at best…

By: FrugalTrader

FrugalTrader — Sat, 29 Sep 2007 15:05:13 +0000

Hey BC, I haven’t crunched the numbers for Sept, but here was my organic growth from Jan 2007 – June 2007:
http://www.milliondollarjourney.com/financial-goals-progress-june-2007.htm

By: B. C. Dhawan

B. C. Dhawan — Sat, 29 Sep 2007 13:33:41 +0000

FT,
Just wanted to know how your assett grew this year beside your saving. eg. return on equity, interest etc.
BC

By: FrugalTrader

FrugalTrader — Fri, 28 Sep 2007 21:40:02 +0000

moneygardener, we hold our savings cash in a PC Financial high interest savings account. The account is currently paying 4.25% interest.

By: moneygardener

moneygardener — Fri, 28 Sep 2007 19:15:55 +0000

Good progress.

I am curious what your ’savings’ category is held in?

By: Canadian Dream

Canadian Dream — Fri, 28 Sep 2007 19:11:10 +0000

FT,

You never know when you will hit a real estate boom. After all I moved to Regina of all places and hit one.

Tim

By: Alex

Alex — Fri, 28 Sep 2007 16:16:20 +0000

You should tell us how much of the increase in net worth was from savings and equity payments in mortgage. Because increases are not all ‘gains’.

By: FrugalTrader

FrugalTrader — Fri, 28 Sep 2007 13:59:49 +0000

Hey Fab, it’s difficult to add value to this blog as I have no idea what it would sell for in the market place. For now, i’ll consider MDJ a bonus. :)

By: Fab

Fab — Fri, 28 Sep 2007 13:56:17 +0000

FT,

I am very happy to see that everything goes well for you ;)!

Why not adding this blog on your assets?

Fab

By: FrugalTrader

FrugalTrader — Fri, 28 Sep 2007 13:01:51 +0000

Thanks for the feedback guys!

FP, my value of real estate is based on a comparative market analysis (took low end number) by my agent MINUS the real estate commissions. I’m usually pretty conservative with my valuation numbers.

CD, I could only wish for a real estate boom! :)

By: Canadian Dream

Canadian Dream — Fri, 28 Sep 2007 12:52:39 +0000

FT,

Way to go. Now all you need is a real estate boom before you sell your house and you could be up 50% for the year. :)

Best of luck,
Tim

By: FourPillars

FourPillars — Fri, 28 Sep 2007 12:51:39 +0000

Good work.

One of my complaints against net worth calculations is that I don’t believe anyone can accurately estimate the value of real estate. I think it would be interesting if you could indicate in someway how accurate your estimate for your principal home was once you sell it.

You can either mention the exact values or just the difference ie 5% difference.

Mike

By: Jonathan

Jonathan — Fri, 28 Sep 2007 12:41:06 +0000

It’s interesting when people provide visibility into their finances since it seems to be a touchy subject for most.

Looks like you’ve made some good decisions. Congrats.

By: The Financial Blogger

The Financial Blogger — Fri, 28 Sep 2007 09:51:10 +0000

Congrats FT !
it seems that nothing can stop you from increasing your net worth! That’s awesome!
keep it up!