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 currently into 3 segments. The 3 parts are a "high" interest savings account, savings account, and an "investment" savings account.
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 June 27, 2021, the value of the savings account with EQ Bank is $2211.60. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.25%. I took some money out of this account to pay for new steel toe boots.
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 was Inter Pipeline. The ticker symbol is IPL and trades on the Toronto Stock Exchange. I owned 42 shares with an adjusted cost base of $901.80. I recently sold the position on news of an offer from Pembina Pipelines to acquire Inter Pipeline. I had a small lost on this position, but came out with a positive total return due to the dividends received. I received a total of $89.41 in dividends from this position.
I purchased an additional 7 units of BMO High Yield Covered Call ETF at a total cost of $128.05 on June 18. 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 $0.02 in ECN fees. This ETF pays monthly. I received a total of $59.84 in total distributions as of June 27, 2020.
On June 27, the current value of this "stock / ETF account" is $1908.97. After the sale of IPL shares, I didn't invest the cash into another position as of the time of this writing.
Overall, the savings total is $4120.75.
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 $104929.02 as of June 27, 2021. This is an increase of 9.66% since the last published net worth post.
TFSA Investing Account
The TFSA investing account balance is $53052.86 as of June 27, 2021. This account is with Questrade. This is an increase of 9.15% since the last published net worth post.
Trading Account
The trading account is with Questrade. There is an active trade on in this account. As of June 27, 2021, the value of this account is $3668.80.
RRSP
I have transferred my RRSP from Tangerine to Questrade in April 2020. 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.
As of June 27, 2021, I own 400 shares of NFI Group Inc and 70 units of XAW. I currently have a covered call on this NFI position. This strike price is $27.00. The option is currently in the money and might get assigned. I have been buying the entire position of XAW using covered call premiums and dividends from the same position in which I sold covered calls.
The value of this account as of June 27 is $15740.51. This is an increase of 9.75% from March 28, 2021.
Summary of Assets
Total Savings : $4120.75
Non-Registered accounts : $104929.02
TFSA Investing : $53052.86
Trading Account: $3668.80
RRSP Savings Account: $15740.51
Total Assets = $181511.94 (increase of 8.70% from 3 months ago)
Liabilities
The balance on my line of credit is $193.33. This is a decrease of $1910.26 from 3 months ago. The large decrease was due to using my entire tax refund to reduce the line of credit. 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, 2021, my net worth is $181318.61. This is a increase of $16439.23, or 9.97%, from 3 months ago.
The market continues to go up. We are still in the COVID 19 pandemic even with the vaccine rollout. In Canada, Alberta announced they are lifting nearly all restrictions on July 1. Masks will still be required using UBER, public transit, and taxis. Saskatchewan announced they are lifting all restrictions on July 11. Some businesses are going to make people still wear masks, to help their own staff to feel more safe. I believe this will lead to a lot of temper tantrums by various people.
To read my first net worth update, click here.
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 $104929.02 as of June 27, 2021. This is an increase of 9.66% since the last published net worth post.
TFSA Investing Account
The TFSA investing account balance is $53052.86 as of June 27, 2021. This account is with Questrade. This is an increase of 9.15% since the last published net worth post.
Trading Account
The trading account is with Questrade. There is an active trade on in this account. As of June 27, 2021, the value of this account is $3668.80.
RRSP
I have transferred my RRSP from Tangerine to Questrade in April 2020. 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.
As of June 27, 2021, I own 400 shares of NFI Group Inc and 70 units of XAW. I currently have a covered call on this NFI position. This strike price is $27.00. The option is currently in the money and might get assigned. I have been buying the entire position of XAW using covered call premiums and dividends from the same position in which I sold covered calls.
The value of this account as of June 27 is $15740.51. This is an increase of 9.75% from March 28, 2021.
Summary of Assets
Total Savings : $4120.75
Non-Registered accounts : $104929.02
TFSA Investing : $53052.86
Trading Account: $3668.80
RRSP Savings Account: $15740.51
Total Assets = $181511.94 (increase of 8.70% from 3 months ago)
Liabilities
The balance on my line of credit is $193.33. This is a decrease of $1910.26 from 3 months ago. The large decrease was due to using my entire tax refund to reduce the line of credit. 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, 2021, my net worth is $181318.61. This is a increase of $16439.23, or 9.97%, from 3 months ago.
The market continues to go up. We are still in the COVID 19 pandemic even with the vaccine rollout. In Canada, Alberta announced they are lifting nearly all restrictions on July 1. Masks will still be required using UBER, public transit, and taxis. Saskatchewan announced they are lifting all restrictions on July 11. Some businesses are going to make people still wear masks, to help their own staff to feel more safe. I believe this will lead to a lot of temper tantrums by various people.
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To read my first net worth update, click here.
To read the second net worth update, click here.
To read the third net worth update, click here.
To read the fourth net worth update, click here.
To read the fifth net worth update, click here.
To read the sixth net worth update. click here.
Disclosure: - Long NFI, ZWC, 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.
