Fiscal Update January 2019 – Market Rollercoaster

Markets make a big comeback in January

December 2018 was a terrible time to be long in the stock market. If it weren’t for the brief rally on the last week of the month, the S&P 500 and Dow Jones would have had their worst December since the Great Depression. But suddenly the bulls took over in the following month.

All in all, 2018 was the worst for stocks in 10 years.

Panicked selling at the end of December would have caused someone to miss out on the amazing gains in the first month of this year. It just goes to show that investors should make decisions based on long term planning, and not on emotions.

I didn’t make any big financial moves in January. I deposited $10,000 from my savings into my retirement account but haven’t bought anything with that money yet.

Liquid’s Financial Update

*Side Incomes: = $3,400

  • Part time job =$600
  • Freelance = $500
  • Dividends =$1000
  • Interest = $700

*Discretionary Spending: = $2,000

  • Food = $300
  • Miscellaneous = $900
  • Interest expense = $1400

*Net Worth: (ΔMoM)

  • Assets: = $1,321,300 total (+110,000)
  • Cash = $11,800 (-8600)
  • Canadian stocks = $166,200 (+10400)
  • U.S. stocks = $116,900 (+4200)
  • U.K. stocks = $20,600 (+1200)
  • Retirement = $125,300 (+10400)
  • Mortgage Funds = $34,600 (+100)
  • P2P Lending = $33,900 (+300)
  • Home = $367,000 (+92,000) (New 2019 assessed land value)
  • Farms = $445,000
  • Debts: = $417,500 total (-1300)
  • Mortgage = $189,500 (-400)
  • Farm Loans = $179,600 (-400)
  • Margin Loans = $48,400 (-500)

*Total Net Worth = $903,800 (+$111,300 / +14.0%)
All numbers are in $CDN at 0.74/USD

Real Estate Value Adjustment 

In my previous net worth update I received some feedback in the comments about how other people value their homes. I bought my apartment 10 years ago. My old method of purchase price + annual inflation doesn’t accurately depict the market value of my apartment anymore. So I’ve decided to use the government assessed land value of my property, which gets updated in January every year. Most recently for 2019 my home’s land value is $367,000 according to BC assessment. So that’s what I’ll do every year from now on. 🙂

After updating my property’s value to better reflect current market conditions, I’m quite pleased to find out that my net worth is now $903K. I’m looking forward to reaching 7 figures soon. 😀

Asset Allocation

Even with the extra $92,000 gain to my home, it still falls a bit short of my most valuable asset – farmland. 🙂 Here’s a relative comparison of my current holdings by market value.

Like a true Canadian, my total real estate exposure come in at over 50% of all assets I own. Many Canadians and Australians love real estate for some reason. Luckily the value of my home has only been going up since I bought it in 2009. But who knows. Maybe things will be different next year.

 

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Random Useless Fact:

I set my alarm earlier than necessary so I would have enough time to stay in bed and think about how much I don’t want to wake up so early.

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Jason
Jason
02/06/2019 3:18 pm

Love the updates.

Been following your progression for a while now.

What are your 2019 goals? Noticed you’re holding more cash then you usually do.

Have you thought about doing any interest rate arbitrage with 0% balance transfer credit cards?

Have you thought about another property?

Chris CD
Chris CD
02/07/2019 6:17 am

Looks like your graph doesn’t include Q4 2018 so it doesn’t match the numbers you posted.
cd :O)

Always read the updates. Just don’t always comment. :O)

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PF Blog Round Up: Snowmageddon Edition - Genymoney.ca
02/15/2019 4:40 am

[…] values to his net worth update for his primary residence, and now he’s smokin’ it at $900K net worth!  He will soon be able to shovel snow during working hours, except that he lives in a condo and […]

Financial Independence
02/21/2019 6:47 am

It looks like a good way of catching up on your goals. I do not include the prime residence on the balance sheet. We will need a house to live, so selling and renting out is not really an option. We bought it out of sentimental reasons (renting is a nearly always better choice).

My Money Wizard
My Money Wizard
02/24/2019 10:58 am

Love these updates. Been following for a few years, and it’s always fun to see the jumps in progress. Keep it up!

Martin/P2P Market Data
Martin/P2P Market Data
02/25/2019 1:54 pm

Awesome detailed updates!

I love that you have farmland in your portfolio.

Do you know of any p2p lending/equity sites with farmland or agriculture other than mintos?