Posts tagged chequing accounts
Net Worth Update June 2010 (+1.45%)
Jun 30th
Welcome to the Million Dollar Journey June 2010 Net Worth Update
With summer underway, it’s the time of year where vacations are plenty and things slow down a bit in online world. Trading volumes decrease, markets slow down, and blog followers are busy enjoying the sunshine. On the same note, my net worth increases continue to be slow, steady and predictable. Once again, the markets have been volatile this past month, but savings continue to be the strength on the balance sheet.
With regards to my investment accounts, I’m still sitting on quite a bit of cash. I picked up a couple new positions in my Smith Manouevre account as discussed in my last update, but my RRSP and TFSA have seen very little action lately. It’s going to be interesting to see when most income trusts convert to corporations. It will give us dividend investors much more selection come 2011.
On another note, I have my vacation days booked, but no real plans yet. How about you? Do you have an annual budget set aside specifically for vacation?
On to the numbers:
Assets: $ 526,610 (+0.99%)
- Cash: $4,500 (+0.00%)
- Savings: $45,900.00 (9.29%)
- Registered/Retirement Investment Accounts (RRSP): $76,300.00 (+1.46%)
- Tax Free Savings Accounts (TFSA): $19,994 (+0.12%)
- Defined Benefit Pension: $29,950.00 (+1.70%)
- Non-Registered Investment Accounts: $12,216.00 (-6.75%)
- Smith Manoeuvre Investment Account: $54,500.00 (+0.93%)
- Principal Residence: $283,250 (+0.00%) (purchase price adjusted for inflation)
Liabilities: $69,700.00 (-1.97%)
- Principal Residence Mortgage (readvanceable): $15,500.00 (-9.36%)
- HELOC balance: $54,200 (+0.37%)
Total Net Worth: ~$456,910.00(+1.45%)
- Started 2010 with Net Worth: $399,600.00
- Year to Date Gain/Loss: +14.34%
Some quick notes and explanations to net worth questions I get often:
The Cash
The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees (accounting for regular bill payments). Yes, we do hold no fee accounts also, but I find value in having an account with a full service bank as the relationship with a banker can prove useful.
Savings
Our savings accounts are held with PC Financial and ING Direct. We usually hold a fair bit of cash in case “something” comes up. The “something” can be anything that requires cash such as an investment opportunity that requires quick cash or maybe an emergency car/home repair. We also need cash to cover any future tax liabilities.
Real Estate
Our real estate holdings consist of a primary residence plus a rental property. The value of the principal residence remains valued at the purchase price (+inflation) despite significant appreciation in the local real estate market.
Pension
The pension amount listed above is the value of both of our defined benefit pension plans. I basically take the semi annual statement and add the contribution amounts (not including employer matching) on a monthly basis.
Stock Broker Accounts
Another common question is which discount broker do I use? We actually have accounts with multiple institutions. I’m hoping to reduce the number of accounts that we hold in the near future. Here is a review of some of the more popular online stock brokers.
Popular Posts:
- How capital Gains Tax Works
- How Dividend and Interest Income Tax Works
- Registered Education Savings Plan (RESP)
- Top Cash Back Credit Cards in Canada
- Questrade Review
- Are Hybrid Vehicles Worth it?
- Tax Free Savings Account (TFSA)
Copyright 2010 MillionDollarJourney – All Rights Reserved
Jan 2010 Net Worth Update (+4.43)
Jan 26th
Welcome to the Million Dollar Journey January 2010 Net Worth Update – New Beginnings Edition!
If you recall, 2009 was a great year for net worth growth. With stock markets and savings up for 2009, we managed to increase our net worth by 29%.
What’s on the horizon for 2010? I’m hoping for more of the same but I think it will be challenging for the markets to return the same as it did in 2009. However, the markets are known to surprise. I will keep holding onto my long term equities and continue to collect my dividends.
A couple changes to the net worth statement for 2010, first, I added a new row for my new TFSA with Questrade. Right now, it’s sitting as cash until I decide how I’m going to invest it. The original plan is to invest in REITs, but they look awfully expensive right now. The second is that I decided to increase the value of our home by a historic inflation factor (3%). The local real estate market has really taken off over the past couple years and even with the inflation adjustment, it’s still well below the selling price after all fees.
On to the numbers:
Assets: $ 497,600 (+3.39%)
- Cash: $4,500 (+0.00%)
- Savings: $29,500.00 (+13.46%)
- Registered/Retirement Investment Account (RRSP): $76,300.00 (+0.93%)
- Tax Free Savings Account (TFSA): $5,000 (+0.00%)
- Pension: $28,150.00 (+0.54%)
- Non-Registered Investment Account: $15,200.00 (-7.88%)
- Smith Manoeuvre Investment Account: $53,500.00 (+0.94%)
- Principal Residence: $283,250 (+3.00%) (purchase price adjusted for inflation)
- Vehicles: $2,500 (2 vehicles) (-16.67%)
Liabilities: $80,300.00 (-1.71%)
- Tax Liability: $3,000 (-0.00%)
- Principal Residence Mortgage (readvanceable): $23,700.00 (-5.95%)
- HELOC balance: $53,500 (+0.19%)
Total Net Worth: ~$417,300.00(+4.43%)
- Started 2010 with Net Worth: $399,600.00
- Year to Date Gain/Loss: +4.43%
Some quick notes and explanations to net worth questions I get often:
The Cash
The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees (accounting for regular bill payments). Yes, we do hold no fee accounts also, but I find value in having an account with a full service bank as the relationship with a banker can prove useful.
Savings
Our savings accounts are held with PC Financial and ING Direct. We usually hold a fair bit of cash in case “something” comes up. The “something” can be anything that requires cash such as an investment opportunity that requires quick cash or maybe an emergency car/home repair. We also need cash to cover any future tax liabilities.
Real Estate
Our real estate holdings consist of a primary residence plus a rental property. The value of the principal residence remains valued at the purchase price despite significant appreciation in the real estate market that we’re in. I will most likely be adjusting the value of the home come the new year.
Pension
The pension amount listed above is the value of my wife’s defined benefit pension. I basically take the semi annual statement and add the contribution amounts on a monthly basis.
Popular Posts:
- Canadian Discount Brokerage Comparison
- Top 6 ways to Save on Auto Insurance
- High Interest Rate Savings Accounts
- MBNA SPG Credit Card Review
- Questrade Review
- Are Hybrid Vehicles Worth it?
- Tax Free Savings Account (TFSA)
Copyright 2010 MillionDollarJourney – All Rights Reserved
Related Blogs
- Related Blogs on Jan 2010 Net Worth Update (+4.43)
How to Avoid or Reduce Bank Fees
Jan 6th
After Kathryn’s post about financial pet peeves, I’ve gotten a lot of feedback and emails regarding bank fees. If you’re the type to read financial blogs, then chances are, you may get as annoyed by bank fees as I do.
Added fees are a huge source of income for the banks. You give them your hard earned money, they turn around and lend it out at a higher interest rate than they pay you, then charge you a fee on top of it. A brilliant business model if you ask me.
However, there are a few ways to avoid bank fees. As some of the points below may be obvious to some of you, they may trigger some new ideas on how to eliminate or reduce bank fees and save a few dollars.
Use a Free Bank
There are not many banks that will offer their chequing account services (with cheques) for free without any minimum balance, however, they are out there. From my experience, the bank that comes to mind that offers essential chequing account services for free is PC Financial. They offer unlimited transactions and cheques for free with no minimum balance. The disadvantage is that PC Financial does not have any bank branches, so no tellers to help you face to face. This may not be a disadvantage to some, but if you need a bank draft (like for a down payment on a house), you’d have to phone them first to have a draft ready a day later at a CIBC branch. They have bank machines for deposits/withdrawals at various Loblaws grocery stores along with free access to CIBC ATMs.
Keep a Minimum Balance
If you are set on having an account with a “bricks and mortar” bank most, if not all, of the big banks offer chequing accounts for free providing that you keep a minimum balance. Although some may think that keeping a minimum balance is a waste of capital allocation, it really depends on the fees. For example, if the TD Select Service Account seems to add value to your banking habits, you’re looking at a $25/month fee unless you keep a minimum balance of $5,000. Although $5k seems like a large amount of money to have sitting around, on an annual basis it represents a 6% return by having the monthly fee waived.
Note though that with some bank accounts, obtaining a book of cheques will have a fee even if you keep a minimum balance so make sure to read the fine print. I have a bank account with CIBC which charges for cheques. To get around this, I use my line of credit cheques which are free. This works for me as both accounts are connected online and I can transfer money back and forth instantly. With a little research, I’m sure most banks have little savings tricks.
Do Your Research Up Front
There is no one bank that is best for everyone as banking needs vary widely depending on the person. Some require more Interac transactions, others cheques while some require currency exchange options. The best bet to reduce fees is to figure out what exactly your needs are and do your own due diligence.
To give you a head start, here are some articles from the past on banking comparisons that may help:
- High End Chequing Account Comparison
- Unlimited Chequing Accounts in Canada
- High Interest Savings Account Comparison
- Comparing US Dollar Bank Accounts
- Canadian Bank Accounts for Kids
- Small Business Banking Account Comparison
- High Interest Tax Free Savings Accounts (TFSA)
Use One Bank
Generally speaking, the more business you do with one bank, the more you can save in fees. For example, Royal Bank provides a multi-product discount. As well, the more you use one particular account for your deposits, the easier it is to keep the minimum balance to avoid the fees.
What are your thoughts? How do you get free banking?
Popular Posts:
- How capital Gains Tax Works
- How Dividend and Interest Income Tax Works
- Registered Education Savings Plan (RESP)
- Top Cash Back Credit Cards in Canada
- Questrade Review
- Are Hybrid Vehicles Worth it?
- Tax Free Savings Account (TFSA)
Copyright 2009 MillionDollarJourney – All Rights Reserved
