Net Worth Updates June 27

Today is June 27, 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. 

Assets

Savings

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 about 7 months ago.  I switched to EQ Bank due to it having a 2.45% interest on their savings account at that time. 

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.  Unfortunately, the account did not disappear as interest was earned in the TFSA with Tangerine for the month I transferred the balance.  The balance is $0.18.  With a value this low, I do not even earn interest as the balance so low.  

On June 27, 2020, the value of the savings account is $2024.39. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 2.00%.  The interest rate was reduced prior several months back as the Bank of Canada slashed interest rates due to the COVID19 pandemic.  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.  I received a total of $69.25 in dividends since initiating this position.  

I purchased an additional 14 units of BMO High Yield Covered Call ETF at a total cost of $203.32.  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.  The purchase of these units resulted in $0.05 in ECN fees.  This ETF pays monthly.  I received a total of $6.16 in total distributions as of June 27.

On June 27 , the current value of this "stock / ETF account" is $924.21.  

Overall, the savings total is $2948.60.

Non-registered Accounts

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 $72115.38 as of June 27, 2020.  This is an increase of 10.15% since the last published net worth post. 

TFSA Investing Account

The TFSA investing account balance is $33381.31 as of June 27, 2020.  This account is with Questrade.  This is an increase of 14.9% since the last published net worth post.  

Trading Account

The trading account is with Questrade.  I currently still have the trade on in Mullen Group.  The ticker symbol for Mullen Group is MTL, and it trades on the Toronto Stock Exchange.  The stock price has increased over the past month or so, as the economy  As of March 28, the value of this account is $2827.23.

RRSP

I have transferred my RRSP from Tangerine to Questrade.  While at Tangerine, the RRSP was in the form of a high interest savings account.  Now at Questrade, I decided to put the money to work. 

I purchased 400 shares of Shaw Communications (SJR.B.TO) and wrote covered calls on that positions. The covered call premiums and the dividends collected were used to buy a Global ex-Canada ETF as it was commission free.  This ETF is XAW and is traded on the Toronto Stock Exchange.  

The covered call option was assigned this month.  So, what did I decided on for the immediate future.  I purchased 400 shares of Shaw Communications and looking to sell covered calls, which is just like last time.

The value of this account as June 27 is $12446.93.

Summary of Assets

Total Savings :  $2948.60 

Non-Registered accounts : $72115.38

TFSA Investing :  $33381.31

Trading Account: $2827.23

RRSP Savings Account:  $12446.93

Total Assets = $123719.45  (increase of 11.84% from 3 months ago)

Liabilities

The balance on my line of credit is $4586.74.  This is a decrease of $539.80, or  from 3 months ago. Since I rent and do not have collateral, the interest rate on this account is 5.66%.  I get charge an insurance fee when carrying a balance.  This insurance fee depends on the balance, therefore it changes every month.  

Conclusion

On June 27, 2020, my net worth is $119132.71.  This is a increase of $13634.12, or  12.92%, from 3 months ago.  

A large part of this increase is due to economies around the world starting to open up after the being shutdown in the middle of the COVID19 pandemic.  

To read my first  net worth update, click here.  

To read the second net worth update, click here. 

Disclosure:  Long IPL, ZWC, SJR.B, XAW

DISCLAIMER

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.