Aug 042014
 

July was a decent month. So far in 2014 my wealth has grown by $100,000! Most of that came from investment gains. Awesome possum! :D My asset column is growing steadily. If I hypothetically buy a one bedroom, shoebox condo tomorrow for $200,000 then BOOM! I’d technically be a millionaire by gross assets! Just thinking about that gets me all kinds of excited :D But I have to be careful not to over extend myself with leverage.

It’s an interesting realization that my current $303,600 net worth is about 36% of my total assets. This means a 36% correction of my overall investments right now would WIPE OUT my entire net worth. POOF! All my wealth would just disappear before my eyes :cry:  Hopefully that won’t happen but who knows what the future holds :? That’s what I love about finance, it’s like a box of chocolates; I never know what surprise will await me ;)

Anyway it’s getting harder to find undervalued investments these days with the equities market being so darn high. So I took a slightly different direction with my investments recently. Rather than picking stocks, I spent over $10,000 instead on a huge shopping spree in July to purchase fixed income assets like bonds and MICs. Most of this spending had to come from new borrowed money but that’s okay. I’m not too worried right now because I emphatically feel like my debt will somehow take care of itself later ;) #fingerscrossed

*Side Income:

  • Part-Time Work = $800
  • Dividends = $500
*Discretionary Spending:
  • Eating Out = $100
  • Others = $200

*Net Worth: (MoM)chart_14july

  • Assets: = $838,300 total (+13,100)
  • Cash = $2000 (+1200)
  • Stocks CDN =$92,600 (-300)
  • Stocks US = $52,700 (+600)
  • RRSP = $49,000 (+6600)
  • MICs = $15,000 (+5000)
  • Home = $254,000 (same)
  • Farms = $373,000 (same)
  • Debts: = $534,700 total (+6,800)
  • Mortgage = $197,700 (-400)
  • Farm Loans = $205,600 (-500)
  • Margin Loan CDN = $30,400 (-400)
  • Margin Loan US = $23,900 (-1000)
  • TD Line of Credit = $32,200  (-400)
  • CIBC Line of Credit = $12,700 (-400)
  • HELOC = $18,700 (-1000)
  • RRSP Loans = $13,500 (+10,900)

*Total Net Worth = $303,600 (+2.12%)
All numbers above are in $CDN. Conversion rate used: 1.00 USD = 1.09 CAD

On the asset side, thanks to the inclusion of the new bonds, my RRSP is now almost at $50K :) I decided to add my $5K of new MICs to the “MICs” asset category (and did not include the value in my “RRSP” category) even though they’re held in my RRSP account. This is for more descriptive bookkeeping purpose only. On the debt side my “RRSP loans” went up big time, but I plan to pay it down at least $1K a month. For the time being I want to just hold onto my current assets. Today I have about 75% of my assets in hard wealth, and 25% in paper wealth. That seems to be a good balance for me :)

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Random Useless Fact:

The Hawaiian pizza was invented in Ontario, Canada.  And the California Roll (sushi) was invented in Vancouver, BC Canada.

Jun 292014
 

I recently read an article about people who camped out for 3 days to be among the first to own the next “hot” thing on the market. What did those people wait in line for? A new smartphone? Nope. A sale on a 60 inch LED TV? Nope. How about a new condo. Yes! Within the first 5 hours of going on sale last Saturday, the first tower at Brentwood Mall, in Burnaby B.C., sold out of all 247 units. :shock: At least the buyers went prepared and brought with them tents and sleeping bags.

14-06-brentwoodcondo

By mid afternoon all suites - ranging from $299,000 to $949,000 - had been bought up. Welcome to the Greater Vancouver Area, where if you don’t camp out for 3 days you have no chance to buy a brand new condo project :?

Speaking of real estate, last week I blogged about buying my first mortgage fund. So this means I have a new item to add to my net worth statement this month :) On to the numbers.

*Side Income:

  • Part-Time Work = $600
  • Dividends = $500
*Discretionary Spending:
  • Eating Out = $100
  • Others = $100

*Net Worth: (MoM)chart_14jun net worth fiscal update

  • Assets: = $825,200 total (+6,300)
  • Cash = $800 (-9500)
  • Stocks CDN =$92,900 (+4100)
  • Stocks US = $52,100 (+1100)
  • RRSP = $42,400 (+600)
  • Home = $254,000 (same)
  • Farms = $373,000 (same)
  • MIC = $10,000 (+new)
  • Debts: = $527,900 total (-3,400)
  • Mortgage = $198,100 (-300)
  • Farm Loans = $206,100 (-400)
  • Margin Loan CDN = $30,800 (-200)
  • Margin Loan US = $24,900 (-1200)
  • TD Line of Credit = $32,600  (-400)
  • CIBC Line of Credit = $13,100 (-400)
  • HELOC = $19,700 (-100)
  • RRSP Loan = $2,600 (-400)

*Total Net Worth = $297,300 (+3.37%)
All numbers above are in $CDN. Conversion rate used: 1.00 USD = 1.07 CAD

June has been a great month. I saw a $9,700 increase to my wealth and there are no signs of the hot stock market slowing down. I suppose this is what happens when the Federal Reserves continues to dump $35 billion a month into the economy. I’m happy to add a new investment into my asset category. As a fixed income vehicle the principal of my MIC does not fluctuate day to day. I may buy more MICs in the future, possibly publicly traded ones next time. Stocks this month has performed very well, especially the technology companies like Google, Apple, and Amazon. I’m extremely happy with Intel’s stock. In mid June Intel announced that it thinks the PC market is still strong. Its share price is up 15% month over month, yay! In terms of debt I’m just slowly paying that down. The large drop of my U.S. margin loan is mostly due to the weakened $USD relative to my domestic currency :P

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Random Useless Fact:

The 2 concentric circles below are perfectly round. #opticalillusion

circles-concentric

Jun 022014
 

May was another great month. Net worth increased by $5,600, mostly thanks to my tenant’s $5K rental payment :) This represents half the year’s annual rent. The other half is due in October. The first farm I bought in 2012 using $20,000 of my personal savings is now worth $50,000 more. Luckily my aggressive 8:1 leverage has paid off and has earned me over 100% ROI every year so far. I don’t think it’s too late to buy farmland today, as long as investors plan to hold it for 10+ years ;)

But how would rising interest rates affect farmland prices in the future? I don’t try to time the market or predict when rates will rise. But I believe higher interest rates will be caused by higher growth and inflation in the economy, which means higher commodity prices, which could mean even higher farmland values. In my humble opinion hard assets generally perform well under inflationary periods. Of course I could be wrong. I’m still cash flow negative so my farmland investment is only speculation at this point :| And if you noticed groceries costing more, sorry. It’s because people like me have been speculating and driving up the cost of farmland, and farmers are paying higher rent.

 

*Side Income:

  • Part-Time Work = $400
  • Dividends = $400
*Discretionary Spending:
  • Eating Out = $100
  • Others = $100

*Net Worth: (MoM)chart_14apr

  • Assets: = $818,900 total (+9,000)
  • Cash = $10,300 (+10,000)
  • Stocks CDN =$88,800 (-900)
  • Stocks US = $51,000 (-100)
  • RRSP = $41,800 (same)
  • Home = $254,000 (same)
  • Farms = $373,000 (same)
  • Debts: = $531,300 total (+2,900)
  • Mortgage = $198,400 (-400)
  • Farm Loans = $206,500 (-500)
  • Margin Loan CDN = $31,000 (+3000)
  • Margin Loan US = $26,100 (-200)
  • TD Line of Credit = $33,000  (-400)
  • CIBC Line of Credit = $13,500 (-100)
  • HELOC = $19,800 (+2000)
  • RRSP Loan = $3,000 (-500)

*Total Net Worth = $287,600 (+2.17%)
All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.08 CAD

I’m pretty happy with May’s results, even though it’s not as exciting as my $53,000 wealth increase in the previous monthly update :P

After depositing the $5K rent, I borrowed an additional $2K from my HELOC and $3K from my Margin account, so now I have $10K total in cash. I have written a cheque for $10,000 made payable to a company called Canadian Western Trust for a major purchase coming up. I need to keep the $10K in my bank account until the transfer goes through. I normally don’t keep this much cash idling around though. I like Warren Buffett’s analogy that cash is like oxygen. It’s important to keep enough of it around, but you don’t need excessive amounts of it, lol. It’s much better to hold profitable businesses or productive real estate than to keep a lot of cash on hand. I hope everyone else also had a great month financially :)

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Random Useless Fact: Hedgehogs are lactose intolerant

hedgehogs fiscal update

May 042014
 

I’m utterly speechless :| Words cannot even begin to describe my grandiose euphoria right now! :D ♪♬♫ Because I’m happy ♬♫  Clap along if you feel like a room without a roof ♪♬♫ Lol :P This is beyond my wildest expectations. My net worth increased by more than 10x my total income in April, including dividends. 14-04-happy face

*Side Income:

  • Part-Time Work = $400
  • Dividends = $500
*Discretionary Spending:
  • Eating Out = $100
  • Others = $200

*Net Worth: (MoM)chart_14apr

  • Assets: = $809,900 total (+52,800)
  • Cash = $300 (-200)
  • Stocks CDN =$89,700 (+2700)
  • Stocks US = $51,100 (+1700)
  • RRSP = $41,800 (+600)
  • Home = $254,000 (same)
  • Farms = $373,000 (+48,000)
  • Debts: = $528,400 total (-200)
  • Mortgage = $198,800 (-400)
  • Farm Loans = $207,000 (-400)
  • Margin Loan CDN = $28,000 (same)
  • Margin Loan US = $26,300 (+1800)
  • TD Line of Credit = $33,400  (-600)
  • CIBC Line of Credit = $13,600 (-100)
  • HELOC = $17,800 (same)
  • RRSP Loan = $3,500 (-500)

*Total Net Worth = $281,500 (+23.2%) All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.10 CAD

I Invested in some Dollarama in my TFSA in early April, which is in the black so far :) I also bought some U.S. stocks on margin (debt.) I adjust my farmland value every April based on the average rates between the annual FCC report and inflation. The new FCC Report shows Saskatchewan farmland prices rose 28.5% in 2013. Inflation (CPI) was about 1% in 2013. Therefore, I have increased the value of my farms by 14.75%

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Apr 052014
 

Remember last year when I explained how investing in coffee businesses was an awesome idea? Well good news, because it looks like the daily grind is paying off ;) One of those companies, Tim Hortons (THI), recently increased its dividends from $0.26 to $0.32 per share!

That’s a 23% dividend increase! Holy hamburgers! That’s amazing eh (゜∀゜) I only bought 20 shares of Tim Hortons at $50 per share, so all it took was just $1K of my personal savings to make this happen. Ain’t it great that we don’t need a ton of money to start investing :) The first payment under the new increased rate was distributed last month. Here’s a look at what that dividend payment looked like for me.

Capturetim Tim Hortons

If you buy your doughnuts or coffee from Timmy’s I would like to say thank you on behalf of all Tim Hortons shareholders :D Without loyal customers like you, this company would not exist today. I look forward to receiving another $6.40 in June, and so on and so forth until the dividend is raised again! Aw yiss :D Collecting passive income is so exciting \(^_^)/

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