Net Worth Update – Oct 2008

Ok, let’s check in on the damage this month.


House $310,000
RRSP $14,500
LIRA $8,600
Pension $5200
Wife’s RRSP $6600
Wife’s Investment Account $5900
My Investment Account $7100
High Interest Savings Account $3000

Mortgage $138,500
HELOC $3300

Therefore my net worth now stands at $219,000 for the end of October 2008. That is an decrease of -$8,200 or 3.6% from my last update.  My year to date net worth increase now stands at 1.9%.

Well the damage here isn’t a bad as I initially expected.  The local housing market is a bit of a mess.  You got older high listing and a few desperate people selling at very low prices.  Hence getting a market value on my home was almost impossible to determine in any exact fashion.  Yet as an overall level my last estimate of my house value is likely still approximately correct.

My investment accounts and RRSP’s keep sinking like stones, but I keep buying as things drop.  The rebalance on my RRSP accounts should be interesting at the end of the year.  On the investment side we’ve picked up two new stocks: CDL.B and APF.UN.  Both had been on my watch list for some time.  I’m really glad I didn’t pick up any APF.UN until after they cut their distribution by 74%.

Overall I’m amazed that our net worth for the year still have a positive value after all of this mess.  Obviously if it sinks much further this year will be a complete loss.

For more details see the following graphs (click to see a larger version).

4 thoughts on “Net Worth Update – Oct 2008”

  1. Just two little comments on stuff you said:

    “I keep buying as things drop.”

    This is usually a big no no in investing circles. Especially the technical ones. You STOP buying when things drop and you restart when they go up! Catching falling knives hurts, lets hope you dont have to learn the hard way. Please dont buy into the “im lowering my avreage” BS too either.

    “I’m really glad I didn’t pick up any APF.UN until after they cut their distribution by 74%.”

    Again with the buying of citrus stocks… Why would you ever buy into a company who just cut distribution by 74% ??? Whats saying they wont do it again. Maybe wait to buy when they have a little upside ?

    Anyway, maybe im just too technical in my investment decisions.

    Best luck with your investments.

  2. I noticed you have Pension listed in your net worth assessment. I myself will be collecting a pension at the end of my 20 year contract. It is 40% of my 5 best years. It is then indexed after 5 years. Anyway if I were to take my current pay I’d receive around 2100$ a month gross. Is this the amount I’d put into my net worth calculations?

  3. There are many urban myths about the market such as “don’t buy a falling knife”. Do the math. For example, buy at -40%, market goes to -80%, use typical market recovery times from historical records. Approach it like an engineer. Ask the “falling knife” guys to show you the math.


  4. Icarus,

    So I have a question for you then. How do you know when things are going up or if it is just another in term spike? Rather than wait for the bottom or try to find when things are recovering I’m keeping to my base plan and keep putting in money at regular times. Obviously I’m usually waiting for a large down day before buying in but that is as close to market timing as I get.

    I’m not worried about APF.UN cutting again. I understand what they do and where the money is going. I decided a price that was reasonable to me and then invested. I don’t worry it is keeps sliding a bit after I buy.

    Rob G,

    Mmm, defined benefit pensions are difficult to include in the net worth because they represent a future value of a contract which shifts in value over the years.

    Perhaps a crude way of doing it is to use your current salary and calculate your yearly payout in the future. Then using a 4% payout find out how much cash you would need as a pool to generate that money (so if you get about $2100/month that would mean a payout pool of $630,000). Then use a present value calculation with a set % such as seven and calculate its current worth. Then include that in your net worth calculation (assuming 20 years that would be about $163,000). It won’t be correct, but it should get you in the ball park. Any one else come across a good method to do this?


    I somewhat agree. There are cases where something was overvalued to begin with that you shouldn’t try to buy at it drops (ie: Nortel).


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