Welcome to the recurring monthly net worth update – The August 2008 edition.
This summer is turning out to be a little expensive. As predicted a few months back, now that my wife is back on her feet and settled into the baby routine, she is now in home decorating mode! Of course with a new house requires new furniture right? If it were up to me, I’d stick with our older furniture until it falls apart.. But who am I kidding, I am the lacky and have no say when it comes to interior decorating. Thus far in 2008, we have spent over $7,000 on new (depreciating) furniture and appliances for the new house with more to come in the very near future. Ah, the joys of home ownership.
Enough rambling, here are the numbers:
Assets: $ 593,050 (+0.56%)
- Cash: $4,500 (+0.00%)
- Savings: $28,000 (+14.29%)
- Registered/Retirement Investment Account: $55,300 (-1.60%)
- Pension: $ 22,350 (+0.00%)
- Non-Registered Investment Account: $18,400 (-4.17%)
- Smith Manoeuvre Investment Account: $51,000 (3.08%)
- Investment Property: $ 124,500 (+0.00%)
- Principal Residence: $275,000 (+0.00%) (purchase price)
- Vehicles: $14,000 (2 vehicles) (+0.00%)
Liabilities: $276,922 (-0.23%)
- Investment Property Mortgage: $92,900 (-0.21%)
- Principal Residence Mortgage (readvanceable): $125,242 (-0.51%)
- HELOC balance: $50,780 (+0.41%)
- Other Liabilities: $8,000 (-0.00%)
Total Net Worth: ~$ 316,128 (+1.27%)
Started 2008 with Net Worth: $279,300
Year to Date Gain/Loss: +13.19%
Looking over the numbers, it was a strong month for cash savings as income was higher than expected. Some of my investment accounts are taking a beating due to a couple Chinese stocks that won’t cooperate. Other than that, she’s holding steady!
Some quick notes and explanations to net worth questions I get often:
The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees. 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.
Our savings accounts are all held with PC Financial. We hold a fair bit of cash due to a cash liability coming in the near future along with the fact that we typically have some cash on hand 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.
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. The rental property value was it’s appraised value in 2006. I’m considering raising the reported values of the homes at the rate of inflation starting January 2009.
Let me know if you have any other questions and I’ll add it to next months net worth update.