Welcome to the Million Dollar Journey January 2010 Net Worth Update – New Beginnings Edition!
If you recall, 2009 was a great year for net worth growth. With stock markets and savings up for 2009, we managed to increase our net worth by 29%.
What’s on the horizon for 2010? I’m hoping for more of the same but I think it will be challenging for the markets to return the same as it did in 2009. However, the markets are known to surprise. I will keep holding onto my long term equities and continue to collect my dividends.
A couple changes to the net worth statement for 2010, first, I added a new row for my new TFSA with Questrade. Right now, it’s sitting as cash until I decide how I’m going to invest it. The original plan is to invest in REITs, but they look awfully expensive right now. The second is that I decided to increase the value of our home by a historic inflation factor (3%). The local real estate market has really taken off over the past couple years and even with the inflation adjustment, it’s still well below the selling price after all fees.
On to the numbers:
Assets: $ 497,600 (+3.39%)
- Cash: $4,500 (+0.00%)
- Savings: $29,500.00 (+13.46%)
- Registered/Retirement Investment Account (RRSP): $76,300.00 (+0.93%)
- Tax Free Savings Account (TFSA): $5,000 (+0.00%)
- Pension: $28,150.00 (+0.54%)
- Non-Registered Investment Account: $15,200.00 (-7.88%)
- Smith Manoeuvre Investment Account: $53,500.00 (+0.94%)
- Principal Residence: $283,250 (+3.00%) (purchase price adjusted for inflation)
- Vehicles: $2,500 (2 vehicles) (-16.67%)
Liabilities: $80,300.00 (-1.71%)
- Tax Liability: $3,000 (-0.00%)
- Principal Residence Mortgage (readvanceable): $23,700.00 (-5.95%)
- HELOC balance: $53,500 (+0.19%)
Total Net Worth: ~$417,300.00(+4.43%)
- Started 2010 with Net Worth: $399,600.00
- Year to Date Gain/Loss: +4.43%
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 (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.
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.
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.
The pension amount listed above is the value of my wife’s defined benefit pension. I basically take the semi annual statement and add the contribution amounts on a monthly basis.