Net Worth Update – Feb 2008

Well it is time again to update my net worth. Please recall I discount my house market value by 8% to cover closing and moving costs if I ever decide to move.

Assets

House $350,000
RRSP $13,600
LIRA $11,300
Pension $6600
Wife’s RRSP $7700
Wife’s Investment Account $7900
My Investment Account $4500
High Interest Savings Account $5400

Debt
Mortgage $142,400
HELOC $2900

Therefore my net worth now stands at $261,700 for the end of Feb 2008. That is an increase of +$46,700 or 21.7% from my last update. WOW! Housing prices in Regina are really dragging up my net worth again.

Well one nice thing about the latest housing price surge is I’m now done one of my goals for 2008. I only expect my house value to increase for 4% in 2008. I’m already now past that and I still have ten months left in the year.

Besides housing my investments took a drop with the rest of the market, not too bad for loses. I’m continuing to sit on my large pile of cash for my parental leave in the spring, which I plan to top up with any tax refund I get this year. Overall our investment net worth is up to $57,000, up $3400 or 6.3% from the end of last year.

For more details see the following graphs (click to see a larger version).

Net Worth - Feb 2008Invest - Feb 2008

9 thoughts on “Net Worth Update – Feb 2008”

  1. I’m impressed with your detailed tracking of net worth. There is a management saying something like ‘ what gets measured gets done’ and it is also applicable to our personal money management. Your tracking/measuring of networth is a fundamental task good “project management”. A skill that is transferable to many areas of work and life in general.

  2. So your house value makes up about 86% of your total assets.

    Mine is 73% but is easier than yours is to bring down, as real estate prices in southern Ontario is growing slowly now.

    Is your aim to bring this ratio down?

  3. CM,

    Don’t tell my boss. I get the feeling they are already planning to dump more projects in my lap. *grin*

    MG,

    I would like to, but frankly it’s going to be impossible in the near future. I can’t save fast enough to off set these surges in house values right now. So I’m stuck on this ride for a while.

    Longer term I will sell the house and try to replace the ratio much lower but that will likely be when the kids are older.

    Tim

  4. Hey Tim, just a question:

    I notice you have a HELOC of $2900 and you and your wife both have non-registered accounts with values more than this. Have you considered paying off the HELOC and reborrowing the $2900 to put into investments?

    (Assuming you expect the return to be higher than the interest you pay on the HELOC right now and that’s the reason for not just paying off the HELOC with proceeds from the investment accounts)

    But this debt-swap would at least make the HELOC interest deductible. (or have you already done this and the $2900 already went to investments?)

    Cheers

  5. I applaud your effort on keeping track of your net worth. In fact, this post motivated me to calculate my own net worth. It was not a detailed version like yours, but at least I have a ballpark figure now (in $k range).

    For my own net worth calculation, I explicitly did not include real estate appreciation and the money sitting in chequing accounts. I excluded our home because the (theoretical) increase does not offset the cost of selling (we just celebrated first anniversary of the closing date). For chequing accounts, the money covers our outstanding credit card balance and monthly expenses.

    As part of the exercise, I also calculated our projected net worth in 12 months — it was really comforting to know that, according to our current saving/spending pattern, we can increase our net worth by 50% of our gross income, investment gain & loss notwithstanding. The best part is, we wouldn’t even have to try hard to obtain that number. That absolutely made my day.

Comments are closed.