May 042015
 

April has turned out to be one of the best months of the year so far. 😀

-Stock markets climbed roughly 2% in Canada and the U.S. (27% annualized return)
-The bond market is paying higher interest rates. Great for new fixed income investors. :)
-Real estate market continues to stand strong. What bubble? 😛
-Canadian dollar strengthens against other currencies such as the USD & Euro. This means more purchasing power for fellow Canucks.
-FCC released its annual farmland report which states Saskatchewan farmland value increased 18.7% in 2014, more than any other province!

All this growth in the markets simply equates to a $40K+ increase to my existing financial assets. Holy pumpernickel! There has never been a better time to be a diversified investor in the North American economy. 😀

I will be updating my farmland values in this month’s net worth update. As usual I’ll use a 50/50 blend of the CPI inflation rate of the previous year (1.9%) and Farm Credit Canada’s report to revalue my farmland. Thus, the average increase is 10.3% or about $38,000 more!

*March Side Income:

  • Part-Time Work = $600
  • Dividends = $600
  • Selling Options = $0
*Discretionary Spending:
  • Fun = $300
  • Debt Interest = $1500

*Net Worth: (MoM)

  • Assets: = $898,500 total (+43,100)
  • Cash = $4,400 (+900)
  • Stocks CDN =$96,500 (+3000)
  • Stocks US = $59,400 (+700)
  • RRSP = $53,200 (+500)
  • MICs = $15,000
  • Home = $259,000
  • Farms = $411,000 (+38000)
  • Debts: = $512,600 total (-2,500)
  • Mortgage = $194,300 (-300)
  • Farm Loans = $201,600 (-500)
  • Margin Loan CDN = $29,200
  • Margin Loan US = $25,200 (-700)
  • TD Line of Credit = $28,600  (-400)
  • CIBC Line of Credit = $10,000
  • HELOC = $18,200
  • RRSP Loans = $5,500 (-600)

*Total Net Worth = $385,900 (+$45,600 / +13.4%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.82 USD

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Apr 042015
 

The overall stock market in March dropped a little bit. It appears growth has stalled in Canada due to continuing low oil prices. But thanks to my side incomes I ended the month with a slightly more positive net worth. :) The only new stock I purchased was 100 shares of National Bank, which I blogged about last month. I must make savings a priority during tough economic times because if I lose my job at least I’ll have a financial cushion to fall back on.

Emerging countries have been growing their economies faster than Canada or the U.S. in recent times. One way to profit from this trend is to invest directly in the currencies of those countries. The value of the Chinese currency, for example, should make people in North America pay attention. But instead, too many of us just yuan. 😀

Back in late 2013 I wrote an article about how I had invested in China’s currency, the RMB. I mentioned I would keep everyone posted. So today I’ll give you guys an update. :) Back then I purchased ¥5,000 for $900 CAD. Today, my ¥5,000 is worth $1015 CAD if I convert it back into Canadian currency. It appears my instincts were correct. Wahoo! 😀 I made 12.7% return in 15 months. It’s not a lot of money. But every little bit helps to reach early retirement.

*March Side Income:

  • Part-Time Work = $600
  • Dividends = $500
  • Selling Options = $200
*Discretionary Spending:
  • Fun = $300
  • Debt Interest = $1500

*Net Worth: (MoM)15-04-networth-update-beyond-borders

  • Assets: = $855,400 total (+800)
  • Cash = $3,500 (-500)
  • Stocks CDN =$93,500 (+2600)
  • Stocks US = $58,700 (-400)
  • RRSP = $52,700 (-900)
  • MICs = $15,000
  • Home = $259,000
  • Farms = $373,000
  • Debts: = $515,100 total (+500)
  • Mortgage = $194,600 (-400)
  • Farm Loans = $202,100 (-500)
  • Margin Loan CDN = $29,200 (+2400)
  • Margin Loan US = $25,900 (+100)
  • TD Line of Credit = $29,000  (-500)
  • CIBC Line of Credit = $10,000
  • HELOC = $18,200
  • RRSP Loans = $6,100 (-600)

*Total Net Worth = $340,300 (+$300 / +0.1%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.79 USD

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Mar 042015
 

The owner of the company showed up to the office one day in a fancy new sports car. One of his employees complimented him on the new vehicle. “Well,” replied the business owner, “if you set goals, show determination, work really hard and put in the long hours, I can get an even better one next year.” 😀

The moral of this short story is simple. If we want to drive nice cars we have to own companies. But not everyone is suitable to become an entrepreneur. Well thankfully the securities exchange commission requests any corporation with over 500 shareholders to become a publicly traded company. This means anyone can own a piece of the company and be entitled to its future profits and dividends. :)

Owners of companies in major stock markets around the world rejoiced as stocks gain in February. Dividend stocks have been particularly strong in South East Asia recently. The Indonesia stock market hit an all-time high. U.S. stock market indexes are up 5% month over month. Earlier this week the Nasdaq went over 5000 points for the first time in 15 years! This is why I’m heavily invested in stocks (company ownership) and don’t keep a lot of cash sitting in the bank. When the Canadian stock market gained 3% in February, my portfolio gained thousands of dollars!

*Side Income:

  • Part-Time Work = $700
  • Dividends = $500
*Discretionary Spending:
  • Fun = $200
  • Debt Interest = $1500

*Net Worth: (MoM)15-01-networth-update-jan

  • Assets: = $854,600 total (+7,300)
  • Cash = $4,000 (+800)
  • Stocks CDN =$90,900 (+2500)
  • Stocks US = $59,100 (+3000)
  • RRSP = $53,600 (+1000)
  • MICs = $15,000
  • Home = $259,000
  • Farms = $373,000
  • Debts: = $514,600 total (-2,100)
  • Mortgage = $195,000 (-400)
  • Farm Loans = $202,600 (-400)
  • Margin Loan CDN = $26,800
  • Margin Loan US = $25,800 (-500)
  • TD Line of Credit = $29,500  (-300)
  • CIBC Line of Credit = $10,000
  • HELOC = $18,200
  • RRSP Loans = $6,700 (-500)

*Total Net Worth = $340,000 (+$9,400 / +2.8%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.79 USD

“Over the last decade,” says automotive economist Dennis DesRosiers, “the luxury market for new vehicles has increased by about 50%” in Canada. And if we look at the chart of the Canadian stock market index (TSX Composite) over the same 10 year period, we’ll see that it has gained by about 50% as well. In 2005 the index was at 10,000 points. Today it’s around 15,000 points. So there we are; a direct correlation between business ownership and luxury car sales. :) It wont be long before I can afford to buy a new sports car myself. 😀

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Random Useless Fact:

Both versions exist

15-03-the-dress-white-gold-blue-black

Jan 312015
 

January is one of my favourite months because I tend to benefit from the New Year’s bump phenomenon which earns me a lot of money without requiring me to do any work. A typical monthly net worth increase for me is roughly $4,000. But in January this number can easily double. This annual boon is the product of two main factors. 1) High quality financial assets that I often write about like my recent REIT investment. And 2) natural market forces that occur at the beginning of every year. :)

*Side Income:

  • Part-Time Work = $700
  • Dividends = $600
*Discretionary Spending:
  • Fun = $200
  • Debt Interest = $1500

*Net Worth: (MoM)15-01-networth-update-jan

  • Assets: = $847,300 total (+9,900)
  • Cash = $3,200 (+400)
  • Stocks CDN =$88,400 (+500)
  • Stocks US = $56,100 (+2800)
  • RRSP = $52,600 (+1200)
  • MICs = $15,000 (same)
  • Home = $259,000 (+5000)
  • Farms = $373,000 (same)
  • Debts: = $516,700 total (-1,100)
  • Mortgage = $195,400 (-300)
  • Farm Loans = $203,000 (-500)
  • Margin Loan CDN = $26,800 (-100)
  • Margin Loan US = $26,300 (+1200)
  • TD Line of Credit = $29,800  (-200)
  • CIBC Line of Credit = $10,000 (-400)
  • HELOC = $18,200 (same)
  • RRSP Loans = $7,200 (-800)

*Total Net Worth = $330,600 (+$11,000+3.4%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.79 USD

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Jan 112015
 

When the Toronto stock exchange dropped  8% in the first 2 weeks of December I thought 2014 was going to end on a down month. But fortunately confidence came back to the market and investors pushed stocks back up. In the end it was a pretty flat month with minor gains in some sectors. :) Had the TSX stayed down at 8% below November’s close, my net worth would be down $13K right now instead of actually being up by $3,300 for the month. Phew. 😎

*Side Income:

  • Part-Time Work = $700
  • Dividends = $500
*Discretionary Spending:
  • Fun = $200
  • Debt Interest = $1500

*Net Worth: (MoM)14-11-fiscal-update-net-worth

  • Assets: = $837,400 total (+1,700)
  • Cash = $2,800 (+800)
  • Stocks CDN =$87,900 (+500)
  • Stocks US = $53,300 (-500)
  • RRSP = $51,400 (+900)
  • MICs = $15,000 (same)
  • Home = $254,000 (same)
  • Farms = $373,000 (same)
  • Debts: = $517,800 total (-1,600)
  • Mortgage = $195,700 (-300)
  • Farm Loans = $203,500 (-400)
  • Margin Loan CDN = $26,900 (-300)
  • Margin Loan US = $25,100 (+700)
  • TD Line of Credit = $30,000  (-400)
  • CIBC Line of Credit = $10,400 (-400)
  • HELOC = $18,200 (same)
  • RRSP Loans = $8,000 (-500)

*Total Net Worth = $319,600 (+1.0%)
All numbers above are in $CDN. Conversion rate used: 1.00 USD = 1.18 CAD

Overall it’s been a terrific year. I’m almost worth $320K now. Yay! Here’s a comparison to last year.

Dec 2014 Dec 2013
Assets $837,400 $742,500
Debts $517,800 $533,600
Net Worth $319,600 $208,900

 

So that’s a six figure annual increase. Not too shabby. It’s actually the best year for me so far. 😀 Most of this wealth surge in 2014 was due to the continuing increase of asset prices. About 5 years ago I went on a mission to build up my financial assets. By the beginning of 2014 I had accumulated about $750K of gross assets. Most of that amount is financed by long term bank loans.

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