Friday, November 14, 2008

net worth update november, 2008

Results for the 2 Months Ended November 14, 2008:

  • Debt/Asset ratio rose to 0.53 from 0.50

  • Net Worth moved down 7.9%

  • Total Assets decreased 0.7%

  • Total Liabilities increased 6.5%

  • House Value/Total Assets rose to 70.4% from 69.9%

  • Non-Registered Portfolio rose 8.0%
  • Calendar Year to Date Gain/Loss: +5.1%

I have to admit that I was dreading putting this net worth report/post together. Our net worth has been hammered down almost 8% since the last bi-monthly update in September. The S&P 500 index is down about 28% since the last update, so this comes as little surprise. Basically the last seven months of net worth gains have been wiped out, as we are now back to April, 2008 levels. As readers know I am buying fist fulls of dividend paying stocks down at these levels. Let's just say that I am investing in future net worth reports. I can take the pain now, and it does hurt, with a look to the future.

Leverage - Liabilities are up 6.5% this update due to us utilizing line of credit funds in order to fund our non-registered portfolio at these low stock valuations. Whether these low stock prices continue for the next few months or next few years, or, god forbid, go much lower, I'll still be glad I started investing these funds now because I'll be receiving dividend income from the funds months earlier.

House Value - I have maintained our house value in net worth calculations at the same level since July of 2007. During this time we've made improvements to our home, however I feel that their affect on the value of the house are negligible when you consider the recent weakness in Canadian real estate prices.


Anonymous said...

keep at it money gardener!!! keep your head up!

MG (moneygardener) said...

thanks for the encouragement. These markets are not for the faint of heart.