Liquid Net Worth Update Q3 2022. -$64,000

Liquid net worth – July through September

It seems things have gotten worse in the third quarter of 2022.

Stocks continue to fall in general and because I am leveraged my investments are down more than the broad-based market.

My liquid net worth dropped by $64,000 and is now back to where it was after Q1 of 2021.


To take advantage of more reasonably priced companies I bought over $100,000 worth of new stocks this quarter.

Of course I didn’t have any savings so I borrowed the money from my HELOC and margin account to do so.

As a result, both my assets and liabilities increased.


Portfolio breakdown

Here is how my liquid portfolio stands on Sept 30, 2022.

Liquid Assets:
Cash = $14,000 (+$2,000)
Canadian stocks & bonds = $404,000 (+18,000)
US stocks & bonds = $345,000 (+79,000)
Retirement = $245,000 (-14,000)
P2P lending = $13,000 (-7,000)
Mortgage funds = $22,000 (-2,000)
Total = $1,043,000

Liquid Liabilities:
Margin loan = $143,000 (+20,000)
HELOC = $180,000 (+120,000)
Total = $323,000

Liquid Net Worth = $720,000 (-$64,000) -8%

All numbers are rounded to the nearest $1,000 and in $CDN at 0.74/USD


Overall it wasn’t as bad as the drop from Q2, but it’s still a bummer seeing the stocks I own fall more and more.

Pretty much all the new stocks I’ve added to my portfolio in the previous quarter are now lower, lol.


On the bright side valuations are looking attractive for many companies now such as Amazon, Google, and Microsoft.

By this time next year these stocks should most likely be worth a lot more than today. 😀


One change I made to my portfolio in Q3 was to withdrawal some cash from my peer to peer lending account.

I’m basically using this money for living expenses.

I expect the economy to get worse in the short term so I don’t expect a lot of opportunities in lending to small business in 2023.


My plan for Q4

Going in to the last quarter of the year I’ll transfer assets from my RRSP to a new RRIF account.

This will make withdrawing cash more easy.

I am also continuing to buy stocks on weakness.

The S&P 500 index is currently at 4,000 points and some analysts believe the bottom of the market will be 3,200.

For every 200 points the S&P 500 drops from now I plan to invest another $20,000 into the markets mostly by selling and getting assigned put options.

However as mentioned in my latest video December could be a pivotal moment for the stock market with a lot of warning signs.

And I would be very cautious about buying any new stocks right now.


Random Useless Fact:

The longer you age cheddar cheese the more sharp it becomes.

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11/29/2022 2:31 pm

Years like this always make me happy I don’t have a ton of exposure to the stock market. Although being overweight real estate can make things tough – you don’t get daily/minutely quotes on values of real estate!

I’ve been getting less organised the past few years with doing net worth statements but in March I was at 2.15M and in Oct I had hit 2.42M.

With those numbers I kept the value of the dental practice – my largest asset the same at $700,000 – the price I bought it at. In April I had an offer of 3M to sell it and in August I got an appraisal of 2.25M for it. I have no idea how much it’s actually worth – I guess what someone will pay for it, but for now I’ll keep it in the net worth calculation at 700K.

I should probably look at starting to diversify into stocks just to keep away from a major real estate correction!

You still scare the hell out of me being ‘retired’ I’d be stressed about loss of active income, but that’s why you pulled the retirement trigger and I’ve kept working haha.

Financial Samurai
11/29/2022 7:24 pm

Gambler! I like it! What’s the interest rate on the HELOC?

Moe (Moementum Finance)
11/29/2022 7:37 pm

Hey Liquid, thanks for sharing your latest liquid net worth update. Do you set targets for yourself when it comes to your net worth and “liquid” assets/liabilities?


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12/01/2022 1:16 pm

Could you expand on why you are transferring assets from your RRSP to a RRIF account?
You can still withdraw from a RRSP early while having to pay the government a withholding tax.

12/07/2022 12:17 pm

When you set up the RRIF do they no longer take off the withholding tax from your withdrawal? Also, are you able to just simply transfer cash from the RRIF to your savings/chequing account as needed? I know there is a minimal WD % on annual basis. How do you ensure you hit that number? I am planning to be employing same strategy next year and wanted to know a little better how it works. Anything you can share would be helpful.

12/02/2022 10:57 am

Why would you not dollar cost average into the stocks, I use leverage but I DCA every pay period and use margin to bump it up, so every two weeks I put in $2500 from my pay cheque and add $1500 of margin so I am adding $100,000 to my portfolio every year and only taking on $40,000 in margin per year incrementally. I buy dividend eligible companies that I use the dividend to pay back the margin interest and principal.
I also max out my RRSP so I get back close to $10,000 at tax time which goes down onto the margin loan as well so technically I am only leveraging$24,000-$30,000.
I have close to what you have for leverage but would never put it all down at once, I kind of keep rolling it out to add some extra juice to the portfolio so to speak.
My own two cents so to speak!

12/03/2022 8:11 pm

Wow, you used a Heloc to borrow 100,000 to buy stocks, you got serious ka-hone-ees my friend. I think there are some really undervalued equities right now, so you prolly did get some good deals. Here’s to keeping my fingers crossed for you!
12/04/2022 8:47 pm

I wonder what stocks you invested in.
My low point for my portfolio was around end of September and since then its been a slow but steady climb up for pretty much all my stocks and ETFs


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