Today is September 26, 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 TFSA savings account was 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 September 26, 2020, the value of the savings account is $1513.75. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.70%. The interest rate was reduced prior several months back as the Bank of Canada slashed interest rates due to the COVID19 pandemic. During the last 3 months the interest rate was reduced from 2.00% to 1.70%.
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.
Overall, the savings total is $2629.63.
The TFSA investing account balance is $36438.52 as of September 26, 2020. This account is with Questrade. This is an increase of 9.16% since the last published net worth post.
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 Shaw shares were called away.
The value of this account as September 26 is June 27 is $13400.63. This is an increase of 7.66% from June 27.
Total Savings : $2629.63
Total Assets = $128781.88 (increase of 4.09% from 3 months ago)
The balance on my line of credit is $3877.16. This is a decrease of $709.58 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.
On September 26, 2020, my net worth is $124904.72. This is a increase of $5772.01, or 4.85%, from 3 months ago.
A large part of this increase is due to economies around the world starting to open up more and more after the being shutdown in the middle of the COVID19 pandemic. The COVID19 numbers for various geographic areas are increasing which may lead to stricter restrictions and fines for individuals and businesses.
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.