Thursday, May 31

May Net Worth Update

Since I gave the game away yesterday there isn't much left to reveal this month. I am up a modest 1.68% to $667,100 despite having some crippling bills, so that is good. There are still a couple of major outflows to cope with next month and then the worst should be over.

I moved $70,000 into my brokerage account, and subtracting that I am showing an $8,700 gain on my investments. Part of this is gain on the BMO purchase which came out of the $70,000, but for simplicity's sake I calculated this as a 3.7% gain on the start of month portfolio. This is great and really speaks to the potential of my portfolio starting to provide more of the growth.

On another interesting note: I sold my old car. My new one is on a lease so I don't show it on my net worth. I am considering it a cash flow liability only and neither asset nor liability for net worth purposes. I'm not sure if this is 100% correct.

My billings are going to slow down for the summer, so I am anticipating the modest growth to continue with no real spikes. Next month may be flat or negative due to the remaining larger bills coming up. Perhaps if I get a good project in the fall I will end the year on a more positive note.

My current cash flow from dividends, investment returns and basement suite is about $1200 per month. The rent is by far the biggest part of this, but since I still have a mortgage it is just helping me pay the bills and that's all.


FourPillars said...

I finally bought some BMO yesterday at $71.00 - it took me three weeks to get my account setup at Questrade, all the while I watched the price go from ~$68 up to $71+. Very frustrating right now, but no big deal in the long run.

I think a leased car should not be an asset or liab.


Mr. Cheap said...

Be careful counting too much on the gains from your BMO. Obviously it isn't going to go up 3.7% every month (that'd be nice though, wouldn't it?), so what you're seeing is just the normal stock volatility.

Equally, don't be sad if it goes down 4% next month, its a long term investment.

Imagine if you could get an accurate market assessment of your house each month. You'd be interested if it went up or down 4% in a month, but you'd be philosophical that the house hasn't changed in a major way to warrant such swings, and that the only time the price really matters is when it comes to be time to sell...

I'm not sure what would be the best way to actually include the stock value in your networth calculations. Obviously include the cash dividends, but in terms of the price itself either accept the fluctuations (and the increased volatility that will result from it), or use a fairly conservative valuation for the stock (such as purchase price or moving average) to remove the jitter. Then you can be happy when/if you sell and your networth shoots up :-).

Just my $0.02, take it for what its worth.

the money diva said...

I can sympathize. I always seem to find that it takes a very long time to get accounts all set up and money in them....

mr. cheap,
Sorry - I wasn't very clear. The 3.7% was an $8700 rise in the total portfolio. It's just coincidence that BMO went up the same amount.