Welcome to the Million Dollar Journey Dec 2009 Net Worth Update – year end summary edition.

2009 has been a great year for net worth growth due to a combination of factors.  First, the markets were much stronger than I expected which has resulted in an aggressive portfolio recovery from the market crash of 2008.  Second, our professional and business income increased during the year which helped with the savings as we bank our raises.

In terms of real estate in 2009, I got out of the rental business in February, thus the capital gains tax payable on our balance sheet.  With regards to our principal residence, even though our local market continued to appreciate significantly, we continued to keep the value at the 2008 purchase price.  Going forward, I may adjust the value of the house to match historic inflation.

Looking at the numbers below, I’m happy to report that we have reached the $400k threshold (well almost) for 2009.  Starting January 2009 with $310k represents a 28.9% increase in net worth over the year.

On to the numbers:

Assets: $ 481,300 (+1.42%)

  • Cash: $4,500 (+0.00%)
  • Savings: $26,000.00 (+20.93%)
  • Registered/Retirement Investment Account: $75,300.00 (+1.76%)
  • Pension: $28,800.00 (+0.54%)
  • Non-Registered Investment Account: $16,500.00 (+5.10%)
  • Smith Manoeuvre Investment Account: $53,000.00 (+1.92%)
  • Principal Residence: $275,000 (+0.00%) (purchase price)
  • Vehicles: $3,000 (2 vehicles) (-25.00%)

Liabilities$81,700.00 (-1.80%)

  • Tax Liability: $3,000 (-0.00%)
  • Principal Residence Mortgage (readvanceable): $25,200.00 (-5.97%)
  • HELOC balance: $53,500 (+0.19%)

Total Net Worth: ~$399,600.00(+2.11%)

  • Started 2009 with Net Worth: $309,950.00
  • Year to Date Gain/Loss: +28.92%

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.

That’s all for 2009!  Have a Happy and Prosperous New Year – I’ll see you in 2010!

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