Welcome to the Million Dollar Journey June 2009 Net Worth Update – The Car Shopping Edition.
With one of our cars already 8 years old, the repairs are starting to add up. So we’re currently in the process of shopping for a good used car/compact SUV, preferably a late model that is off lease with low kilometers. We are leaning towards foreign models (Honda/Toyota) as we have had good experiences with them in the past. Do you have any used car buying tips? Should I be looking at dealerships? Or perhaps private sales are the way to go? Here’s an article I’ve written in the past about negotiating your new car purchase.
Back to the topic at hand, the net worth update. Not a big change this month with most of the increase due to savings. Portfolios gained a little, but nothing compared to last month. The markets have pulled back a bit since the June high and some analysts are calling that further correction is needed/inevitable. I’m not sure of the future direction of the market, but I do know that there is a mountain of cash on the sidelines. Once the fund managers start deploying their cash, I expect that the markets will aggressively go higher.
You may have noticed as well that our vehicles have been depreciating at an accelerated rate over the past few months. That’s intentional as I am looking to take the cars off the balance sheet soon.
Assets: $447,350.00 (+1.29%)
- Cash: $4,500 (+0.00%)
- Savings: $11,000 (+46.67%)
- Registered/Retirement Investment Account: $65,000 (+2.69%)
- Pension: $22,350 (+0.00%)
- Non-Registered Investment Account: $15,500.00 (+2.69%)
- Smith Manoeuvre Investment Account: $46,000 (+2.22%)
- Investment Property: $ 124,500 (+0.00%)
- Principal Residence: $275,000 (+0.00%) (purchase price)
- Vehicles: $8,000 (2 vehicles) (-11.11%)
Liabilities: $91,500.00 (-1.82%)
- Tax Liability: $3,000 (-0.00%)
- Investment Property Mortgage: $92,000 (-0.11%)
- Principal Residence Mortgage (readvanceable): $35,500 (-6.58%)
- HELOC balance: $53,000 (+1.53%)
Total Net Worth: ~$355,850.00 (+$7,400) (+2.12%)
- Started 2008 with Net Worth: $309,950.00
- Year to Date Gain/Loss: +14.81%
Some quick notes and explanations to net worth questions I get often:
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.
Our savings accounts are all held with PC Financial. We 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.
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.
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