2018 is passing by quickly. We are already in the final quarter. 🙂 My stock portfolio’s value dropped a little in September. But I still managed to grow my net worth by half a percent for the month thanks to my multiple income streams. By January 2019 my goal is to have a net worth of $1 million. 🙂
A stock market dip in September is normal – perhaps even expected. Since 1896, when the Dow Jones Industrial Average was created, the Dow has lost an average of 1.03% in September. That compares to an average gain of 0.76% across all other months of the year. The funny thing is the Dow actually climbed higher this September. But it was the S&P/TSX Composite in Canada that dropped 1.8% lol.
Liquid’s Financial Update
*Sidel Incomes: = $2,800
- Part time job = $600
- Freelance = $300
- Dividends = $900
- Interest = $500
- Solarshare payment = $500
- Food = $300
- Miscellaneous = $500
- Additional Interest = $900
*Net Worth: (ΔMoM)
- Assets: = $1,240,100 total (+1,500)
- Cash = $12,800 (+1600)
- Canadian stocks = $176,800 (-1000)
- U.S. stocks = $126,900 (+900)
- U.K. stocks = $21,600 (unch)
- Retirement = $115,300 (-500)
- Mortgage Funds = $34,100 (+200)
- P2P Lending = $32,600 (+300)
- Home = $275,000
- Farms = $445,000
- Debts: = $423,700 total (-2,700)
- Mortgage = $191,200 (-400)
- Farm Loans = $181,500 (-400)
- Margin Loans = $49,500 (-400)
- CIBC Line of Credit = $1,500 (-1500)
*Total Net Worth = $816,400 (+$4,200 / +0.5%)
All numbers are in $CDN.
Inflation in Canada is picking up. We are at roughly 3% this year compared to 2% in 2017. Higher inflation will have a positive impact on real estate prices. I’m thinking about buying another property either next year or in 2020. Home prices will likely continue to increase in Vancouver and Toronto, at least in the long run. So getting more real estate now is probably a good idea.
Due to the nature of my new job I will not disclose my annual salary from now on. I was able to negotiate a relatively high salary for myself, about 20% more than my previous employer which shut down recently. Lest any of my coworkers stumble upon this blog I don’t want them to know how much our company is paying me. But I’ll continue to share all other sources of income such as from investments and freelance graphic design. 🙂
Random Useless Fact:
The hospital you were born in is the only building you leave without entering.
Good thing you jumped ship before it sank! I found a spelling error in your blog. Do you include the fair market value for your Condo and Farm Lands? You’re probably higher than what you’re stating now. I finally hit $700k net worth!
Farmland is fair market. Condo is below market value for now. I will use the government assessed value of my condo starting next year. 🙂 Good job hitting $700K net worth. You are going strong even with the additional responsibility in the last few years.
Can I ask how you plan on getting to $1mil NW within 3 – 4 months?
That’s a ~$180k jump from where you are currently.
Good question Jake. In January of every year the government sends out property assessments to all home owners. My current apartment’s value in my net worth statement is based on my purchase price + annual inflation. In the beginning this was a conservative approach and it was similar to the government’s assessed value anyway. But over time the gap between the market value and what I post on the blog has become too great. My currently stated $275,000 value of my apartment is no longer accurate. So starting next year I plan to use the government’s assessed value for my home. Based on comparable sales of neighboring real estate this year, I estimate the January 2019 assessment for my apartment will be around $400,000. This is $125,000 more than my home’s current stated value on the blog. In addition to this estimated boost, I presume my other assets will continue to gain in value over time. So far this year my net worth has grown by $13,000 per month on average. Assuming this trend continues, I should have $52,000 in 4 more months, when I publish my January 2019 Fiscal Update post. If all this pans out I should be… Read more »
13 years was a good run. Not good for the small community when the city is already so small and people are so leveraged in real estate. Congrats on the big salary bump! Every bit helps!
Did you try testing the farm’s sale ability?
I haven’t tested the farmland market yet. Prices have gone up since last year based on government report but I’m not sure about the volume. If it’s similar to other real estate then I assume it would have felt the effect of higher interest rates and sales would have slowed down. Farmland isn’t as liquid as residential properties to begin with so a bear market could hurt farm owners more than people who own houses.
Hi Liquid, haven’t posted to your blog for a while.
I enjoy reading your very clean, easy to understand & follow format, it’s very good.
From your updates I see your debt over time is reducing nicely, is there any reason why you would not keep or maintain a debt/leverage with your margin loans, LOC or HELOC (instead of reducing them, even though interest rates are rising) providing of course your investments are providing you with positive returns & growth?
On the recent update, a question on the ‘solarshare’ investment – has there been any issues or hiccups with this? Any update if you wouldn’t mind sharing, as to what are the percentage returns yielding?
all the best
Hey John. There are a couple reasons I am slowly paying down debt instead of letting it stay where it is.
1) Interest rate is higher so even though my total debt is lower than last year I’m paying the same cost to maintain it. I want to pre-emptively get in front of the next rate hike so my debt servicing won’t get out of control in the future.
2) I’m getting closer to starting a family and have to reduce my risk to debt because I can live on a bootstrap budget, but it wouldn’t be fair to burden children with family debt.
The solarshare investment is going well. It’s a 15 yr total investment period so being patient is key. It has been paying me about $1,000 / year, with an annual return of 6% as advertised. There has been no issues so far. 🙂