Today is March 28, 2020. Although passive income through dividends and option premiums is my focus when it comes to investing, I decide to do a post about my current net worth.
What is net worth? Simply put, net worth is calculated by adding up all assets and subtracting the total of all liabilities. Net worth is sometimes referred to as shareholder's equity. Assets and liabilities are part of the balance sheet.
The savings section is broken into 3 segments. This is a taxable high interest savings account,
a TFSA savings accounts and combination stock investment and ETF investment. The TFSA savings account has been removed due to low interest rate after the decrease in the interest rate by the Bank of Canada. Bank of Canada is basically Canada's version of the federal reserve.
The taxable high interest savings acount, in which the interest rate is laughable, was with Tangerine. It currently at 0.4%, which is down from 1.1% from 3 months ago. I switched to EQ Bank due to it having a 2.45% interest on their savings account.
The TFSA savings account was also with Tangerine. I was frustrated with getting such a low interest rate with Tangerine. I took the money out and placed it in non-registered high interest rate savings account with EQ Bank.
So, I have 1 savings account now instead of the 2 accounts I had before. On March 28, 2020, the value of the savings account is $1731.58. After the fall in interest rates to help combat the COVID 19 pandemic and fall of oil prices, the bank of Canada had to reduce interest rates by enacting emergency rate cuts. EQ Bank lowered their interest rate from 2.45% to 2.00%. We just had another interest rate cut by the bank of Canada this past week. I suspect EQ Bank may reduce their interest rate in the very near future.
The stock and ETF investment involves a stock and an ETF that I hold within my margin account. I keep the dividends and distributions received separate from the dividends I post in my dividend income updates.
The stock is Inter Pipeline. The ticker symbol is IPL and trades on the Toronto Stock Exchange. I own 42 shares with an adjusted cost base of $901.80. The cash not including dividends is $10.36. I received a total of $59.90 in dividends since starting this position.
I purchased 15 shares of BMO High Yield Covered Call ETF at a cost of $212.42. The ticker symbol is ZWC and trades on the Toronto Stock Exchange. My brokerage has zero commissions on purchase of ETFs. There is a small ECN fee which is a few pennies. I believe for the purchase of these units it was like $0.03 total. This ETF pays monthly. This ETF traded ex-dividend on March 27, and I will receive my first distribution in early April.
On March 28 , the current value of this "stock / ETF account" is $567.83. I have not added any money to this account.
Overall, the savings total is $2299.41.
The non-registered accounts consist of a margin account and 2 stocks held directly with the transfer agents. The margin account is with Questrade. The total value is $65470.04 as of March 28, 2020.
TFSA Investing Account
The TFSA investing account balance is $29040.53 as of March 28, 2020. This account is with Questrade.
The trading account is with Questrade. This is done within my margin account. I keep track of the balance, market value and cost basis of the trades. I currently have a trade on in Mullen Group. The ticker symbol is MTL and trades on the Toronto Stock Exchange. Mullen Group is a group of trucking companies which consist of approximately 70% conventional trucking and 30% oilfield trucking. The stock has fallen by almost $5.00 due to the fallout over the COVID-19 pandemic and the fall of oil prices. I did not set a stop as I was trying to sell covered calls. As of March 28, the value of this account is $1787.23.
My RRSP is with Tangerine. This is in the process of getting transferred. I held their funds for a while and eventually sold the funds. Therefore, the RRSP is basically in a savings account. On March 28, the balance is $12027.92. The interest on this account is 0.40%, which is down from 1.1% interest rate from 3 months ago.
Regardless of the double whammy of the COVID-19 pandemic and the fall of oil prices, I decided to switch this account. I submitted the paperwork to transfer the RRSP to Questrade. This will enable to purchase investments that would possibly generate better return.
Summary of Assets
Total Savings : $2299.41
Non-Registered accounts : $65470.04
TFSA Investing : $29040.53
Trading Account: $1787.23
RRSP Savings Account: $12027.92
Total Assets = $110625.13 (decrease of 25.5% from 3 months ago)
The balance on my line of credit is $5126.54. This is a decrease of $1373.46, or from 3 months ago. Since I rent and do not have collateral, the interest rate on this account is 5.66%. This interest rate is down from the 7.16% interest rate from 3 months ago. The Bank of Canada has decreased rates a few times over the last 3 months, which caused the big Banks to reduce their prime rates with each interest rate reduction. I get charge an insurance fee when carrying a balance. This insurance fee depends on the balance, therefore it changes every month.
On March 28, 2020, my net worth is $105498.59. This is a decrease of $36437.32, or 25.7%, from 3 months ago.
A large part of this decrease is due to the economic fallout over low oil prices and the COVID-19 worldwide pandemic.
To read my last net worth update, click here.
Disclosure: Long IPL, ZWC
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.
Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.