Lazy Investor

I have been updating my networth using NetWorthIQ since June this year. But this is the first time I published it.

Assets

Cash: $248

Non-registered Investments: $16,247

Retirement(RRSP):$10,798

Cars: $28,800 (Some people don’t count their car as assets. I do but consider it as a depreciation asset. I have set the depreciation rate to be $300 per month. Therefore, in 8 years from now, the value of my car will be zero)

Debts

Credit Card balance: $1500 (I usually don’t carry credit card balance. But this month has been a bit difficult. The Air ticket back home cost me more than $1960. I have transfered the balance to a low interest rate card, currently at 3.9% until March 2008. The balance should be paid of at the end of Nov, in worst case scenario,  in the middle of Dec.)

Car Loans: $23,789 (I have a car loan for 5 years at 2.9% interest rate).

Total Net Worth:$30,804

My NetWorthIQ profile Link: http://www.networthiq.com/people/v132z

As pointed by one of my commenter Shawn, the GreatCanadianRebates is giving 6% cash back on each CanadianTire purchase from Oct 22 to 29. It is a very good time to stock up the gift cards to pay for your gas or for your winter tires if you buy those from CanadianTire! Also use the promotion code ADVANCEGREEN for free shipping on purchase over $49.

If you pay with the reward credit cards such as 1% cash back Citi Enrich or 2% cash back Amex Gold, the reward is even bigger!!!

Don’t delay. It is one week only.If you have not signed up, you can sign up here.It is one week only. Time to stock up mine now.

The stock market tumbled last Friday. Almost everything is down in equity market, no matter if it is in Canada, US or Aust. This makes me thinking if the traditional geographic assets allocation works anymore.

When we diversify our investment, first of all, we will have certain percentage of assets in fixed income and equity. Secondly, in the equity portion, we will have it allocated to different markets, such as Canada, US, Aust., etc.

I have no doubt that the first level(Fixed Income vs Equity) diversification will work. We usually see the fixed income and equity move in different direction. But with the trend of global economy, the economy of different countries are dependant on each other more and more. It becomes more interconnected each everyday, especially in stock market. If the credit crunch happened in 50 years ago, it might not have the same impact on the stock market outside US as today.

So if the stock market in developed country are about the same (they move in the same direction), why we even bother to diversify among them,especially if you are doing indexing?

I think it will make more senses to diversify simply based on Emerging market and Non-emerging market as opposed to Canada/US/Aust. etc. Simply look at Chinese stock market, no matter what the stock markets in North America is doing, it keeps going up. I am not saying it is sustainable. But for diversification, it might not be a bad idea, right?

Also, sector diversification will also work, I think. Different sectors will be at different ups and downs stage at different time. But for broad indexing in developed economy as a assets allocation method, will it work anymore?

I was talking to my friends about getting a second job in Walmart or some other stores. Not I need a lot more money, but just to kill some time and save a bit more. The paid for my job is not great, but fine, around $40,000 per year for a software engineer with about 2 years’ experience. I think it is not too bad in NewBrunswick.(Oh, I might want to relocate to Toronto next year. Anybody has any ideas about the average salary will be for a software engineer or a data analyst with 2 yrs experience will be?)

The main reason for this is that my friend and I find ourselves just sitting in front of the computer all night after work. Why can’t we just work maybe two or three days in a week to make some small money? The pay will be around $400 per month,260 per month after tax with 50 hours work per month.

Not sure if it is worthwhile to do? And anybody has any experiences applying job in Walmart before? Is it easy to get? What the work is like? Any other ideas to increase the side income?

I am just back from a five days trip from Disney World in Orlando. The trip was awsome, but I am so exhausted now. We did four parks in three days!! Imagine that!

No, I have not given up on this blog and will come up with some posts next week.

Cheers~~~~