In today’s post I’ll share my finances and investment performance over the last 3 months. 🙂
My liquid net worth does not include my home or rental properties.
My liquid net worth progress – April to June
It has been an amazing quarter for most asset classes. The TSX hit 20,000 points for the first time ever. Here’s a summary of my liquid net worth changes.
Cash = $22,000 (+$1,000)
Canadian stocks & bonds = $349,000 (+40,000)
US stocks & bonds = $217,000 (+8,000)
Retirement = $225,000 (+5,000)
P2P lending = $26,000
Mortgage funds = $44,000 (+2,000)
Total = $883,000
Margin loan = $117,000 (-5000)
Total = $117,000
Liquid Net Worth = $766,000 (+$61,000) + 8.7%
All numbers are rounded to the nearest $1,000 and in $CDN at 0.81/USD
Half way through the year
My liquid net worth has grown by $120,000 so far this year. Wow. 🙂
My Interactive Brokers portfolio has returned 28% year to date.
For context, the Canadian stock market index TSX Composite is up about 18%.
Inflation played a major role in my portfolio’s outperformance. I’ve previously blogged about how I have hedged against rising commodity and other hard asset prices in 2021. I’ve also made videos on the topic.
It looks like my actions are paying off!
The stock market used to be confusing for me. But now it makes cents. 😀
*SPXTR = S&P 500 total return index
*EFA = MSCI developed market index (Excludes US and Canada)
*VT = Vanguard total world stock index
Asset breakdown, events, and analysis
It’s incredible to see almost $900,000 of financial assets in my portfolio. I hope it will become $1 million by the end 2021.
All my investments continue to grow in value except for my peer to peer lending portfolio through Lending Loop. There were some write offs in May and the overall account was flat overall for the quarter, which is a bummer. I guess you can’t win them all. If I see other opportunities I will consider pulling some cash out of Lending Loop to fund a more lucrative investment.
My MICs have been surprisingly resilient throughout the last year. I thought low interest rates and mortgage payment deferrals would hurt these fixed income investments, but the mortgage funds (MICs) that I hold have all done relatively well, and at near all times highs.
Here’s a rough look at where my financial assets are held.
In last quarter’s update I predicted we’re going to see higher asset prices in Q2, and higher inflation in goods and services.
For the third quarter I expect prices to level off. I think most of the stock market growth for the year has happened already.
But a major factor that can influence how stocks behave is the fixed income market. If bond yields decline, it will push more investors into the stock market and continue to drive prices up.
Anything is possible short term, but it’s also mostly noise in the short term. At the end of the day investors should be focused on buying great assets at relatively cheap prices, and plan to hold them for a long time. 🙂
Random Useless Fact:
Big bucks! I just saw your update pop upon my Feedly right after publishing mine.
I hope you get to $1 million too. Another 12% rise in the stock market would be incredible.
There wouldn’t be a need for many investors to work!
I’m just chugging a long slowly. Everything feels like gravy.
I feel like 2011 to 2021 has created more new millionaires than any previous decade, lol. You and your family are doing really great on your financial journey. 70% in real estate is roughly my current situation as well. 🙂
High cost of living cities are expensive to live in. But they also represent amazing investment opportunities for landlords.
Another incredible update! You are crushing it, Liquid. Keep up the great work and all of us motivated! Very well played.
Thanks Dreamer. The markets just keep going higher and higher, woohoo. 🙂
Congratulations on growth in net worth and also good to hear MICs are doing well. I invested in MIC years ago and now I wish I added more quantity on a regular basic since then. In any case stocks are doing well.
I faced the same issue with Lending Loop – bad loans, late payments, etc couple of years ago (long before covid). It was supposed to be a fixed income earning investment but turned out difficult to manage if I add more funds. Secondly, the issue of additional paper work involved for taxes. Gradually I’m coming out of it. I could invest small sums and continue but I decided to quit because its not going to move the needle and not worth putting in time and effort. I would rather invest in MICs or income-oriented ETF to get safe fixed return. Just sharing my view.
I kind of feel the same way. I’m thinking about taking out $5,000 or roughly 20% of my holdings out of Lending Loop. The only problem is I don’t have a good alternative at the moment. But once I see an investment opportunity I know where I can get the money, lol. 🙂
Long term I may get out of the peer to peer lending business altogether. We’ll have to see how things go.
Congratulations, a very strong update. Fully agree, assets prices in particular stocks are likely to escalate further. As long term oriented investors we are fine either way. Keep it up, I am already looking forward to your next milestone.
As long as the central bankers keep printing money I don’t see a market correction any time soon. This makes my options trading strategy very lucrative. But who knows how long this will last. 😉
Congratulations man!! It would be amazing to see one million just before the end of the year.
You are the first blogger that I saw who actually listed a six figure margin loan as part of the liabilities instead of mortgage. I LOVE that.
Thanks dude. I actually have over $1 million of mortgage debt, haha.
Nice! Congrats on the net worth increase. My net worth has remained fairly flat all year, but there was a big bump in June thanks to the stock market rally.
Thanks. June was a great month for the stock market. I’m not sure how many more of these good months we will get this year. I’m planning to sell a 1 year out put option on SPY. The premium is hundreds of dollars. 🙂 I hope I’m making a good move here and not taking on too much risk.
Wow that’s amazing stuff Liquid. Very impressive return so far this year. Who knew we’d have a bull market in the middle of a global pandemic?
I know right? The market often surprises me with unexpected behavior. I can’t complain though. 🙂 I’m enjoying the ride.
And you’re making a lot of progress with your dividend income this year. Looking forward to your next update on that.
This updates makes so much cents.
Hah. Dad jokes are best jokes.:)
Nice update Liquid. I really enjoy reading your blog. We think in a similar way. I have RE (farm land included), sell covered calls and CSPs, played with lending loop and concluded it’s a dud (too many loans in accrual). Congrats on your spectacular portfolio performance!
That’s cool. We’re invested in so many of the same assets lol. That probably means your portfolio has performed really well too. Onwards and upwards. 🙂
Nice net worth jump, Liquid! Your YTD performance is looking fantastic. I look forward to seeing you get past $1 million by the end of the year. Thanks for sharing your asset breakdown and thoughts on the market. Great insights and I’m with you on buying quality assets and holding for the long term.
Thanks Graham. $1 million in liquid assets, here I come. 🙂
Amazing progress. At $120k already this year, why work? Just kidding.. if only those returns could be relied on. Keep up the great work!
Thanks. Eventually I’ll probably turn some of my capital gains and convert them into income generating assets. But I won’t do that yet while I’m still working, otherwise my income tax would be too high. Once I quit my job I’ll need to shuffle my investments around. 🙂
Congrats! Any thoughts on how having kids may impact investment strategies, net worth, and debt load?
Great question. I don’t think kids will have much of an effect on those things in particular. Cash flow would be affected by working less so that would probably mean lower slower net worth growth.
I think the biggest impact to my life would be my work schedule. After having kids I plan to either work part time or retire altogether. 🙂 The $90,000 annual passive income I currently receive should be enough to cover all household expenses even with 2 kids.
Trading options is fun so I could see myself continuing to do that regardless.
Wow 30%+ return YTD very impressive! Your 12 month return must be even more impressive, lol!
Thanks GYM. 12 month return is 65% for my non-registered account. But to be fair we were coming out of a bear market from last year. I think everyone’s portfolios made great gains since last summer. 🙂
Wow impressive update Liquid. Like you we have MICs in our portfolio too. They seem to be a steady Eddy during this pandemic – something I’m not complaining about.
Thanks Maria. MICs are an excellent balance of risk to reward. I’m not complaining either. 🙂 I plan to increase my MIC holdings as I get closer to retirement.
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