Net Worth Ledger

The Net Worth Ledger summarizes the assets, liabilities and estate taxes of the clients.

Assets

The assets section separates liquid assets, which are used to fund Retirement Income Needs, and fixed assets.

Liquid Assets includes:

Retirement Investments – The total value of all client and spouse/partner’s RRSP/RRIF and Locked-In investments. Growth, deposits and withdrawals are all factored into this calculation; see the Personal Assets Ledger for details.
Non-Registered/TFSA – The total value of all client, spouse/partner and joint Non-Registered and TFSA investments. Growth, deposits and withdrawals are all factored into this calculation; see the Personal Assets Ledger for details.
Corporate Investments – The value of Corporate Investments & Securities. Growth, deposits and withdrawals are all factored into this calculation; see the Corporate Assets Ledger details.

Fixed Assets includes:

Real Estate – The total value of all personal Real Estate Holdings; Principal Residence, Recreational Property and Investment Property.
Corporate Assets – The total value of Corporate Owned Real Estate and Goodwill & Operations.
Other Assets – The total value of all Other Assets.

Total Assets is the sum of all the liquid and fixed assets.

The Liabilities section shows all client and spouse/partner debts:

Residential Mortgage – The year end value of the mortgage on the Principal Residence.
Investments Mortgage – The year end values of the mortgage balances for both the Recreational Property and Investment Property.
Lifestyle LOC – The value of any Lifestyle Line of Credit triggered due to cash flow deficiencies.
Corporate Debt – The year end value of the mortgage on the Corporate Owned Real Estate.

Total Liabilities is the sum of the four liabilities areas mentioned above.

The Equity section of the Net Worth tab shows three columns:

Net Worth – Calculated as the difference between Total Assets and Total Liabilities.
Deferred Tax – The taxes that have been deferred or are payable when the assets are passed on to the estate. This value is calculated as the sum of the deferred tax columns from the Personal Assets Ledger and Corporate Assets Ledger.
Estate Net Worth – Calculated as Net Worth less Estate Taxes.