August 2016 Fiscal Update

New Addition to my Asset Column

After blogging about my exciting new investment in a startup company, I’ve decided to categorize this equity holding as a new asset class in my net worth updates. 🙂 High net worth investors are continuing to move their investments into uncorrelated assets such as private companies and I plan to grow my investments using a similar strategy. There is no way to eliminate market volatility entirely, but it’s possible to minimize its effect on my portfolio. 😉

Liquid’s Financial Update

*Side Incomes:

*Discretionary Spending:
  • Fun = $200
  • Debt Interest = $1300

*Net Worth: (MoM)16-08-fiscal-update-liquid

  • Assets: = $1,006,200 total (+6,800)
  • Cash = $12,100 (-3000)
  • Stocks CDN =$120,900 (+1400)
  • Stocks US = $72,900 (+1600)
  • RRSP = $71,500 (-2700)
  • Mortgage Funds = $26,300 (+3000)
  • Venture Capital = $6,500 (NEW!)
  • Home = $263,000
  • Farms = $433,000
  • Debts: = $476,000 total (-1,400)
  • Mortgage = $187,300 (-500)
  • Farm Loans = $193,900 (-500)
  • Margin Loan CDN = $28,300
  • Margin Loan US = $25,600 (+200)
  • TD Line of Credit = $13,900  (-600)
  • CIBC Line of Credit = $9,500
  • HELOC = $17,500

*Total Net Worth = $530,200 (+$8,200 / +1.57%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.76 USD

Say hello to my new asset: Venture Capital. 🙂 I think calling it VC is more accurate than private equity. As mentioned in my post from last week, I now have over $1 million in assets! Let’s break down some of the numbers.

  1. Cash holdings decreased because I used some savings to purchase my startup investment.
  2. Both Canadian and U.S. stock portfolios grew.
  3. I purchased $3K of new mortgage funds in my RRSP. I transferred the $3K value from my “RRSP” category into “Mortgage Funds” instead.
  4. No updates to home and farmland values.

Overall August was a pretty good month. For September I plan to invest in some renewable energy. I found an Ontario based company that suits my investor profile, so I’ll explain what my plans are for that in a future post. 😉

__________________________________
Random Useless Fact:

Smartphone cameras use LEDs for flash.

16-09--forget-to-turn-off-flash

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Lynx
Lynx
09/05/2016 10:28 am

I am liking the diversity on the asset side of your investments. I am working on expanding into the alternative asset space also. Congrats on reaching a million dollars in assets. Great feat.

Tawcan
Tawcan
09/05/2016 10:38 am

Pretty awesome progress Liquid millionaire. 😉

Anon
Anon
09/05/2016 11:28 am

You list all your assets in C$ even though you paid/get paid for some in US$; do you hold a US$ account for any/all US$ payments instead of trying to convert back to C$ for accounting?

I’ve done the same with my US PE investments. I bought when the FX was 1:1 and get paid US$ distributions. With the current FX I’m now getting a 30% “bonus” to convert.

DivHut
09/05/2016 11:45 am

Nice to see you adding even more diversification to your overall assets. I wonder if we’ll start seeing “VC” pop up on other FI blogs as we have seen many P2P lending categories pop up a little over two years ago. Thanks for sharing.

Gen X Investor
09/06/2016 8:33 am

Congrats on your continued rise in N.W. and on hitting the 1 million mark in assets. I like how you’re always searching out new investments to diversify. Have you given any further thought on purchasing a rental property (besides the farms)?

canadianbudgetbinder
09/07/2016 7:21 am

Congratulations mate you’re doing awesome!!!