Jan 122017

What’s 6 inches long and gets Kim Kardashian excited? That’s right. It’s money. 😀 Especially the one with Benjamin’s face on it. There is certainly no shortage of liquidity in the world today thanks to central banks. As investors, our priority is to increase our expected returns while reducing our anticipated risks. A good way to go about doing this is by setting goals. Making smart decisions and taking appropriate action is easier if we have defined a target to aspire to. 🙂 If we don’t take control of our money, then someone else will inevitably try to use money to control us.

Here are my financial goals for 2017.

  • Grow my TFSA to $80,000.
    I currently hold $72,000 across all my tax free savings accounts. I have $3,000 contribution room remaining for the year. All the investments inside my TFSAs have performed well, except Bombardier stocks BBD.B. Overall I’ve been quite lucky with my stock picks. 🙂
  • Grow my RRSP to $100,000.
    I currently hold $86,000 in my RRSP. I have $10,000 contribution room remaining for 2017.
  • Grow my net worth to $750,000.
    I hope to grow my wealth by $180,000 this year. $60,000 of this increase could come from savings and debt reduction. The remaining $120,000 would ideally come from investment returns. 🙂 This isn’t an unreasonable expectation considering last year’s market performance, and I currently have over $1 million worth of assets.
  • Increase my passive income rate by $2,000/year.
    I plan to invest at least $35,000 into a mix of fixed income securities and dividend stocks. The average yield on new investments would be 4% to create $1,400 of new passive income per year. The remaining $600 growth should come from dividend increases from investments that I already have in my current portfolio.

That’s pretty much it. As usual, the likelihood for me to reach my goals will depend on many factors, including how the financial markets perform which is largely out of my control. We’ve had a great Q4 in 2016 to finish the year on a high note. But who knows how this year will turn out. Setting goals is important because it gives us something to focus on and look forward to. It guides our behavior so we feel a sense of purpose when making financial decisions. 🙂

Random Useless Fact:

There’s a man in east India who has 39 wives, 94 children, and 33 grandchildren so far. They all live in a 100 room mansion. It takes 30 whole chickens, 132lb of potatoes, and 200lb of rice just to make a family dinner.


Sep 262016

When Average Isn’t Enough

Everyone knows that exotic dancers are bad at investing. After all, they always end up losing their shirts. 😆 But they are not alone. Most people in general are simply not very successful at investing.

According to BlackRock, the largest financial management company in the world with nearly $5 trillion of AUM, the average American investor managed to make only 2.11% return per year over the past 2 decades.Â đŸ˜±


The saddest part is how this number is even lower than inflation, lol. So in terms of real returns people actually lost money. 🙁 There are many reasons for this low performance. Investors’ sentiments, emotions, and personal goals are all factors. But the reason I want to discuss today is the improper use of investment tools.

Why People Are Generally Bad at Investing

Reason 1 – Not using tax sheltered vehicles

The Roth IRA is a great example of a tax savings vehicle that many American investors have overlooked. In Canada we have the Tax Free Savings Account (TFSA) which has similar benefits; Any investment gains realized within this account is tax free. 🙂

The first problem is that most people don’t use it. According to the CRA, in 2013 only 38% of eligible Canadians have opened TFSAs. The second issue is those who do have this account aren’t making the most of the tax savings. Data from RBC Royal Bank suggests that its clients tend to play it safe when it comes to their TFSA with 44% of holdings in high interest savings accounts. *Yawn* Another 21% is invested in GICs which are also producing rock bottom returns right now. This means only the remaining 35% of the money in TFSAs are actually used for proper investments that hold stocks, bonds, and other asset classes that have a decent chance at beating inflation.

This essentially means that only about 13% of TFSA eligible Canadians are using the investment vehicle correctly. But even less have taken maximum advantage of it because only 7% have fully maxed out their contributions. Of course everyone has different financials goals, which alludes to my post about the debt spectrum. So it may be perfectly suitable for a retiree to put all of his savings into a GIC if it suits his investment objectives. But in general 2.11% should not be the target most investors should aim for. 😉

Taxation is one of the costliest expense on investment returns. If more investors make better use of tax advantaged accounts they can leave more money in their own pockets. 🙂

Random Useless Fact:

33% of Harvard University students get the following question wrong.


Sep 012016

Millionaire Status

After checking my balance sheet for the month of August I realized that the value of all my assets is worth $1,006,200. Great Scott! For the first time in my life I own a million dollars worth of stuff! 🙂

According to the official Oxford Dictionaries website, a millionaire is “a person whose assets are worth one million dollars or more.” The word “assets” is commonly defined as any owned items or properties that have financial value. So according to this official definition I am now technically a millionaire! ? Gosh almighty! Below is my reaction right now.


I started investing about 8 years ago. I mostly just buy a wide range of investments and use diversification to lower my risk. I also intend to hold my investments until I retire. It sounds like a simple strategy, but it works for me. 🙂 Some readers may think I’m a good stock picker. But that’s not true.

In the last 7 years falling interest rates have pushed up asset prices across the board for stocks, bonds, and real estate. The S&P 500 index in the U.S. returned over 150% to investors since 2009. 😀 Good heavens!

My point is anyone could have randomly invested in a basket of different securities starting in 2009 and would likely see similar appreciation in their assets as I have. 😉 So I didn’t get lucky choosing stocks. But I am lucky to have started investing near the bottom of the great recession in 2008.

Continue reading »

Jun 092016

Living on $29/week

I thought about becoming a food taster once, but decided not to because I didn’t want to have too much on my plate. ? Most wage earners get paid either once or twice a month, but we generally have to eat food everyday. This means learning how to budget our grocery bill is an important skill to have. For some people maybe $200 a month for food is enough, but for others it might be $400 or more. Having a personalized budget that is reasonable will teach us about self control, rationing, meal planning, and will probably even save us money. 🙂 If we fail to watch our spending and plan ahead then we may run out of money before our next paycheque and find ourselves in times of scarcity. ?


Earlier this week I started a food stamp challenge inspired by a famous celebrity. The idea is to spend no more than $29 on a whole week’s worth of food. I’m about half way through the challenge so I thought I’d give a quick update on how things are going. You can see the previous post for the full list of ingredients and detailed breakdown.

So far I’ve gone through most of the vegetables, but I’ve only eaten 5 of the 14 turkey drumsticks. I’ve been making a lot of salads, sandwiches, and roasts. Overall I’m roughly half way through my food basket. Tomorrow I’ll make a quick stew out of some potatoes, radish, and fish. I have 2 squashes remaining which I’ll probably stuff and bake. I have some left-over tomatoes and green peppers which I’m going to use up tonight lest they spoil. Below are some examples of simple dishes I’ve made so far.


As mentioned in the previous post I’m only using salt and pepper for seasoning. I first thought this may become boring and repetitive after awhile, but so far the whole foods like tomatoes and bell peppers have quite a lot of natural flavor themselves, especially when cooked, and the salt actually helps to bring out their taste. Since I only eat two meals a day, plus snacks, I don’t have to cook very often. I think eating fewer meals is helping me with this challenge by eating less than other people would.

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Feb 152016

Complaints are Opportunities in Disguise

Picky eaters like to whine and dine. But food isn’t the only thing people complain about. Although whining isn’t productive, it’s a legitimate coping mechanism that shifts blame and responsibility to other people. But if handled correctly, complaints can be turned into opportunities.

In order for there to be a complaint, there must be something else we want that’s better than what we already have. Nobody complains about water being wet because that’s just how it is. So if we can complain about something then that probably means we also have the opportunity to change it for the better. 🙂 It’s just that most of the time we’re not willing to risk or sacrifice in order to obtain a better outcome, otherwise we’d just do it instead of complaining. 😛

So whenever a complaint arises, we should ask what it is that we want to change. What is a more favorable alternative? Then we just have to put together a plan and get to work. It may be risky, and it may require a lot of time, energy, and sacrifice. But if we can get through the hardship, then on the other side of our commitment is a reward that people who only whine and complain, but don’t take action, will never get to enjoy.


By trying to solve a problem, it turns a negative state of mind like complaining into something positive. It switches our brains from the reactionary defensive mode to a more proactive offensive mode to make us more creative and productive.

This also works on larger scales since there are huge opportunities in addressing other people’s complaints. 40 years ago consumers complained that personal computers were too difficult to operate. Bill Gates realized that developing a more user-friendly operating system would solve this problem so he created Microsoft, and took advantage of his Windows of opportunity. Today, PCs are universally adopted and most of them run a Windows operating system. Sometimes the best opportunities express themselves in the complaints of other people. The more people complain about something the bigger the reward will be for the first person comes up with a viable solution.

Random Useless Fact:

According to security-management company SplashData, the most popular password in 2015 was 123456.


#2 – “password.” Are you f*$%^ kidding me?