Net Worth Calculation for Financial Independence – Oct 2023

We will become Financially Independent in 2024, and to do that, we track not only our spending but also our Net Worth by sharing our progress with you. Let’s see what happened in October 2023.

What is Net Worth and why is it important?

Here’s an excerpt from Wikipedia:

For individuals, net worth or wealth refers to an individual’s net economic position, the value of the individual’s assets minus liabilities. Examples of assets that an individual would factor into their net worth include retirement accounts, other investments, home(s), and vehicles. Liabilities include both secured debt (such as a home mortgage) and unsecured debt (such as consumer debt or personal loans). Typically intangible assets such as educational degrees are not factored into net worth, even though such assets positively contribute to one’s overall financial position

Net Worth Calculation Breakdown – October 2023

Assets: $1,776,733

  • Real estate (Canada + Brazil): $1,110,000
  • Pension plan: $34,054
  • Investments (all accounts but the SM): $487,210
  • Smith Manoeuvre (SM): $145,469

Liabilities: $753,204

  • Principal residence (Canada): $753,204

Net Worth: $1,023,529

Net Worth Calculation video from October 2023

Financial Independence Summary

  • When comparing MoM:
    • Assets: Decreased -1.3%
    • Liabilities: Increased 0.58%
    • Net worth: Decreased by -2.7%
    • Even with the net worth down 2.7%, we could keep it over 1 million dollars. This is the fifth month in a row
  • Our goal is to reach 1,300,000 million dollars in 2023. With October’s numbers, we are at 78% of this goal.

Where do we invest to achieve Financial Independence?

Principal Residence

Currently, we are living in Toronto, a rather expensive city! But that high cost of living also means that our house has appreciated over the past few years quite a bit. Our home was purchased in 2016 for $615,000 but was recently valued in 2020 at $860,000 2022 at $1,030,000. [UPDATE] In 2023, due to the state of the economy, we’ve decided to reduce the price of our house to $950,000

Condo overseas

In 2019 we bought a condo in Brazil as an investment property. This price was paid in Reais (Brazil’s currency) but we have converted this to Canadian dollars ($137,500) to keep things simple. The condo is now paid off. [UPDATE] New price (Dec 2022) is $160,000 Canadian dollars.

Pension

Kristine works for the municipal government and we are using the same number every month based on her best five years.

Investments

This is the total of our investments in both of our RRSPs and TFSA’s, our margin accounts, and Gean’s investments overseas. We are 100% invested in equities (dividend and growth stocks) and ETFs.

Smith Manoeuvre

Since renewing our mortgage in 2020, we are using the HELOC (Home Equity Line of Credit) to invest in dividend-paying stocks (100% Canadian stocks).

Comments on this entry are closed.

  • Sue Nov 18, 2023 @ 12:39

    Is the pension amount a total amount or annual payment once you retire?

    • FIRE We Go! Nov 20, 2023 @ 11:21

      Great question, Sue. This would be the annual amount once Kristine retires.