18 - The Oakville Beaver, Friday October 26, 2007 www.oakvillebeaver.com Magical start Net Worth is what matters it's not just about portfolio returns! Personal finance is such an i it is not a topic of interest by an essential skill is not a m system, since we can benefit We can all be a bit more inv time and effort to learn. In this edition of Moneywis and familiarize you with th some basic, practical, inves immediately to your daily knowledge will take you and By giving you a better under is determined, and why it is finance, you can work wit increasing your Net Worth o Just what is Net Worth Quite simply, Net Worth is th your liabilities at a given point in time. Or stated another way, what you own minus what you owe. It is your "personal balance sheet," similar to a balance sheet that any business maintains and monitors. Let's look at a very simple example: Joe Investor has a home (asset) valued $350,000, a savings account (asset) with a balance of $5,000 and an investment portfolio (asset) totaling $25,000. He carries a mortgage (liability) for $250,000, credit card (liability) obligations totaling $15,000 and a personal loan (liability) with a balance of $25,000. Joe's Net Worth is calculated to be $90,000. RUNNING FOR A CAUSE: The Third Annual Oakville Magical Races at Bronte Creek Provincial Park raised about $23,000 for children's charities on Oct. 20. More than 375 runners ran in three different races -- the Kids' Miracle Mile (right), a 5k Walk/Run and an 8 K Run (above). Funds raised from this year's event support local children's charities and the Oakville Magical Christmas Party in December at LeDome Banquet Hall for many under-served children in Halton. Why is Net Worth so important in personal finance? As mentioned, your Net Worth is like a "financial checkup" at a given point in time and it should be used to monitor changes to your "financial health." Continuing with our example: Let's say that one year from now, Joe Investor's home is worth $370,000, the savings account balance remains at $5,000 but his investment portfolio has increased in value by a "whopping" 20 per cent to $30,000. Fortunately, he has continued paying down his mortgage which now stands at $240,000; however, his credit card obligations have doubled to $30,000 and similarly his personal loan has increased to $50,000. Unfortunately, after combining all of Joe's assets and liabilities, the complete picture does not look as promising. Joe's Net Worth has actually decreased to $85,000, due to the additional debt that he has taken on during the year. This illustrates how important it is to monitor one's Net Worth and not simply portfolio returns. Net Worth is the true measure of your "financial well-being." What can you do to increase your Net Worth? With your Financial Planner's assistance, a customized Net Worth statement can be prepared and used to identify and prioritize opportunities for you to increase your assets and decrease your liabilities. By doing so, you will increase your Net Worth. Remember to take the time to educate yourself on the basics of personal finance. Speak to a Financial Planner, take a course, read the business section of the newspaper or purchase a simple personal finance book. The Regional Municipality of Halton Philip Mathew, B.A. Sc., MBA, Financial Planner "Educating and Empowering Clients to Make Sound Personal Finance Decisions" www.philipmathew.ca Investment Planning Counsel The views expressed are those of the author and not necessarily that of Investment Planning Counsel or any subsidiary company. Column Provided by Investment Planning Counsel Live your dream. Increase your Net Worth. Ca I'll show you how. Philip Mathew, B.A. Sc., MBA 905-634-6021 www.philipmathe Investment Planning Counsel I P C I N V E S T M E N T C O R P O R AT I O N TM be for you! might d lh YEPP Need Help Finding a Job? 627 Guelph Line, Burlington, Ontario L7R 3 M 7 Tim Trian, CFA - Portfolio Manager Laura Trian, CA., CFP CIM - Associate Portfolio Manager , Vi i h // i d Are you between the ages of 15 and 30? YEPP is a six week program that will give you the skills to find and keep a job. Transportation is provided and participants are PAID to attend. For further information contact Margaret Springle at 1-866-442-5866, ext. 4626 or margaret.springle@halton.ca This program is funded in part by the government of Canada 261007 200-2908 South Sheridan Way, Oakville Tel: 905-829-0600 Peace of Mind ... ... the most Valuable Service we Provide Anton Tucker CFP, FMA, FCSI 905.901.3429 anton@tridelta.ca www.tridelta.ca OAKVILLE NORTH YORK MISSISSAUGA THORNHILL 1151 Bronte Road, Oakville, Ontario L6M 3L1 Tel: 905-825-6000 · Toll Free: 1-866-4HALTON · TTY: 905-827-9833