Net Worth – Aug 2009

Well welcome to the recovered edition of my net worth updates.  See the numbers below.


House $322,000
RRSP $21,800
LIRA $9,800
TFSA $6,600
Pension $9,900
Wife’s RRSP $11,000
Wife’s Investment Account $7,400
Wife’s TFSA $5,600
My Investment Account $5,800
High Interest Savings Account $3,900

Mortgage $130,400

Therefore my net worth now stands at $273,400 for the end of Aug 2009. That is an increase of $21,700 or 8.6% from my last update.  Of that my investment net worth was $81,800 which was an increase of $10,300 or 14%.

On a year to date basis net worth is up 24.4%, while investment net worth is up 66.6%.  It  is interesting to note that now my net worth is within $1600 of my all time high of April 2008.  So I would call this a recovery, at least for me.

I did increase my house value this month.  The house across the street just sold giving me a very good reference number to what my house is worth.  Also we continued the mortgage pay down campaign so that keeps dropping at a good pace.

On the investment front we continue to bulk up my wife’s investment account with some contributions, but in general the market’s recovery has more driven this net worth increase more than anything else.  Essentially I’m seeing a the payback of buying those investments around the bottom of the market earlier this year.

Also I realized my graphs were getting cut off during the transfer from the original spreadsheet so I adjusted the amount of data being displayed so they should show properly now.

(Click for a larger image)


8 thoughts on “Net Worth – Aug 2009”

  1. Do you find that the majority of your net worth is built upon savings and debt repayment rather than shear investment? This is the sense I get, especially when you start putting large amounts of earned income into paying down your mortgage and in terms of capital into asset acquisition. I wonder if the safest way to financial freedom is to focus purely on savings rather than investing. Saving 80% of your income over 7 years gets you free right?

  2. fwisp,

    Ops! Thanks. It’s fixed now.

    Chris L,

    Savings and debt repayment can be an excellent place to start which is where I’ve put most of my money to date. That then buys you time to learn more about investments and avoid mistakes later. At the same time avoiding investment entirely can make sure you miss some good years to buy in (like early 2009). You need some balance to your plans.

    By the way 80% is a huge number to do, but if you can go hard and get out young.


  3. I’m sure you’ve probably posted on this before, but technically, shouldn’t assets that can’t be liquidated or that don’t generate cash flow be considered networth neutral? Your primary residence can be sold, but we all have to live somewhere, so wouldn’t the value of the house be the difference between the purchase price and what a smaller place would cost? In terms of growth, if history is any guide,( except of course for the recent large leaps in Western Canada), residential real estate seems to generate growth of slightly over 1% above inflation.

    So for the purposes of discussion, if your $191,600 of residence equity is removed from the mix, doesn’t that bring your total assest value available for investment to $81,800?

  4. Now Really,

    It’s all about how you want to calculate your net worth. I don’t include my car in the numbers or the RESP account, but I do include the house since I have ever intention of downsizing at some point in the future (which is why I discount it’s value by 8% to cover selling it). In addition I do have the ability to tap the equity via my HELOC to pull off a Smith and generate income that way if I wanted.

    Essentially I have calculated my net worth the way my bank would do the numbers. Is it the ‘right way’ well no, because there is no one right way to do it. Pick what works for you and keep with it.


  5. Tim,

    I just stumbled upon your site yesterday and this post was the first I read. It intrigued me a bit as I’ve just started calculating my net worth. The thing that grabbed my attention the most is that your HELOC is at $0. This means that you’re not doing the Smith Maneouvre as confirmed by your reply to “Now Really” above.

    I’m curious why you wouldn’t take the opportunity to at least borrow to invest even if you don’t do the full blown process. I know you’re familiar with Derek Fosters books as I’ve seen a review by you of one of them so you should have the confidence to not loose your borrowed money by following his principals.

    Just curious,

  6. Steve H,

    My reply stated I ‘could’ do a Smith,not that I was doing a Smith. Just to be clear.

    I do occasionally borrow cash for short terms in order to buy an investment on the cheap. It’s not a very frequent thing, but it does happen. As you noted I typically do that for income yielding stocks.

    I’m not sure yet if doing a Smith is really useful for me. I’m still debating that one in my mind. On one hand, yes it can accelerate growth. On the other do I need to bother taking the risk when I could be out of the work force in 14 years or less anyway?


  7. Chris – Focus PURELY on a CASH GOAL not a net worth retirement goal. Net worth is an illusion, especially illiquid assets such as housing.

    I wrote a couple posts on this topic at FS.

    Canadian Dream, does your net worth include your wife’s assets as well?



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