Friday, May 15, 2009

net worth update, may 2009

It's time to report my bimonthly net worth. This particular report (May) is what I call my 'fiscal year', as I began tracking net worth in May of 2006.

Net worth results for the 2 Months Ended May 15, 2009:
  • Debt/Asset ratio dropped to 0.51 from 0.56
  • Net Worth jumped up 18.9% (to a record high)
  • Total Assets rose 5.9% (to a record high)
  • Total Liabilities shrunk by 4.3%
  • House Value/Total Assets fell to 66.4% (a record low)
  • Non-Registered Portfolio grew 20.5%

Calendar Year to Date Gain/Loss: +10.6%

2008 Fiscal Year Gain/Loss: +4.6%

This was by far our largest bi-monthly net worth gain ever. It feels good to be up this much after several months of weak net worth changes. The markets were in a deep hole in mid March and have climbed out of that hole to much higher levels today. We have also paid off about $5,700 of debt over the past 60 days.

Fiscal 2008 was extremely weak, as we grew our net worth by only +4.6%. This is completely attributed to the weakness in the stock market. The markets are down by 38% over the period. So against that headwind, I'll consider that not half bad.

We'll continue to do what we can on the savings front and either invest the money or pay down debt, depending on the level of the stock market. I don't claim to know where the market is going but lately I have felt it appropriate to pay down debt instead of investing at these levels.

3 comments:

Sampson said...

Great job MG,
I particularly like this comment:
"Fiscal 2008 was extremely weak, as we grew our net worth by only +4.6%"
I'd be glowing if we could do this consistently ;-)
Considering the large proportion of worth coming from you home, 4.6% seems pretty darn good for liquid assets. The trick going forward will be to sustain high percentages even though this means much larger real $ increases.
Good luck!

MG (moneygardener) said...

Thanks.

Other than extreme market movements, it is all about savings right now. Given our current net worth level, any increase of less than 15% annually is pretty weak. When you factor in savings rates and debt repayment our net worth should probably be growing at rates north of 15% for the next couple years.

RB said...

Good stuff guys. How do you figure out the debt ratio though, given it's hard to know exactly how to figure out what your home is worth in this environment?

I did some calculations myself, and notice if i keep asset prices growing at 2% (inflation or something low), and just save and pay down debt, my net worth grows about 12-15% for several years and declines to the single digits b/c the networth number grows large.

I'm assuming you guys keep your exact #'s private?

Check out my blog sometime, and I'd love to follow yours.

Thnx!

RB

http://www.richby30retireby40.com/