Welcome to the recurring monthly net worth update – The November 2008 edition.
For the second month in a row, I was not looking forward to putting this post together. As you can see from the title, November 2008 is another down month with my net worth dropping an additional 1.59%. What’s the reason for the decrease? The markets have dropped to levels not seen since 2003/2004 which means most, if not all, equity positions are lower… much lower.
I also made the mistake of deploying some of the cash I had in my RRSP and SM Portfolio into positions I thought were a “steal”. Apparently, cheap stocks can get much cheaper!
What prevented this update from being really ugly was, once again, our trusty savings.
Here are the assets/liabilities result for the month of November:
Assets: $ 577,750 (-0.98%)
- Cash: $4,500 (+0.00%)
- Savings: $36,000 (+9.96%)
- Registered/Retirement Investment Account: $41,100 (-8.67%)
- Pension: $22,350 (+0.00%)
- Non-Registered Investment Account: $18,300 (-1.08%)
- Smith Manoeuvre Investment Account: $42,000 (-10.45%)
- Investment Property: $ 124,500 (+0.00%)
- Principal Residence: $275,000 (+0.00%) (purchase price)
- Vehicles: $14,000 (2 vehicles) (+0.00%)
Liabilities: $ 266,400 (-0.26%)
- Investment Property Mortgage: $92,300 (-0.22%)
- Principal Residence Mortgage (readvanceable): $122,700 (-0.57%)
- HELOC balance: $51,400 (+0.39%)
Total Net Worth: ~$311,350 (-1.59%)
Started 2008 with Net Worth: $279,300
Year to Date Gain/Loss: +11.48%
For those of you tracking your net worth, how much has the market down turn affected you?
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 all held with PC Financial. We 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.
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 appraised in 2006. I’m considering raising the reported values of the homes at the rate of inflation starting January 2009.