Big Turnaround
It was a huge win for the markets in October. 🙂 Most stocks performed very well. The technology sector in particular experienced the most appreciation. Intel shares increased 12% over the past month. Alphabet (Google) shares jumped 15%. And Amazon shares soared 22%. Both GOOG and AMZN prices are now at new highs. As a shareholder of many technology companies, including the names just mentioned, my portfolio saw some awesome gains in October. 😀 I also received a rental paycheque of $4,600. So that was a nice bonus on top of the stock market rally.
*Side Income:
- Part-Time Work = $500
- Dividends = $600
- Interest = $200
- Rent = $4,600
- Fun = $200
- Debt Interest = $1400
*Net Worth: (MoM)
- Assets: = $913,900 total (+20,600)
- Cash = $2,200 (+200)
- Stocks CDN =$95,900 (+10100)
- Stocks US = $68,900 (+5500)
- RRSP = $61,100 (+4600)
- MICs = $15,800 (+200)
- Home = $259,000
- Farms = $411,000
- Debts: = $499,300 total (-2800)
- Mortgage = $191,800 (-400)
- Farm Loans = $198,800 (-500)
- Margin Loan CDN = $27,700 (-200)
- Margin Loan US = $27,000 (-600)
- TD Line of Credit = $24,000 (-500)
- CIBC Line of Credit = $10,000
- HELOC = $18,200
- RRSP Loans = $1,800 (-600)
*Total Net Worth = $414,600 (+$23,400 / +6.0%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.76 USD
This was one of the best months of the year. 🙂 It was mainly thanks to the positive stock market performance, especially the high single-digit gains on the U.S. stock exchanges. The farm rent helped a lot as well. I used it to pay back the $4K I borrowed to buy some new Royal Bank shares. I took on debt hoping my investment would pay off. So far RY shares are up 5% since I bought them, and I’ve paid 0.35% interest on the loan. So my plan to make money using other people’s money is working. I hope things continue to go smoothly for everyone’s investments for November as well. 😀
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Random Useless Fact:
China is ending its one child policy.
Huge congrats my friend. Things are looking very well for you and your investment! My October performance wasn’t too bad either but not as good as yours 🙂
Keep up the good work!
BSR
You as well. 🙂 Let’s end 2015 with a high note for the remaining 2 months.
Very nice gain for October. I hope the trends will continue for next few months in Canadian stocks due to year end rally and the election results.
I assume you will get the one million asserts in few months.
Keep investing!
Cheers
Having a million dollars in financial assets is my new near-term goal. 🙂
Congrats Liquid on passing the 400k mark! I’m hoping to see a similar boost when I crunch my numbers this week.
You are doing a smashing job with your TFSA. 🙂 And congrats on the rental property.
Good stuff! That’s a great milestone!
Thanks. Next checkpoint will be the half million dollar mark. 😀
$23,400 is like a dream, it looks like your asset will exceed the $1M by the year end :). Even if you don’t add anything anymore, just let things run by itself, the investments will pay off the debt so you’ll be a millionaire after the debts are paid for. In the capitalist environment, you have to leverage, that’s exactly how to get ahead, and you are way above the curve among us millennial. Great job, bro
Thanks Vivianne. I just follow the premise that the rich focus on assets while the poor focus on income. My income may not be high, but I’ve sacrificed a lot to gain as much assets as I can. And thankfully this had paid off so far.
Liquid,
Congrats on passing the $400K mark in net worth. I heard they were predicting a warmer than normal winter this year which would be good for your farms are the farms should be able to yield more crops. This could possibly mean higher rent checks for you.
Yes, that would be great. I’ll have to talk with my renter soon about next year’s lease term.
Congratulation on an amazing month !
Thank you sir. 🙂 *salutes*
Government of Saskatchewan’s been doing their best to put an end to any further farm appreciation, though:
http://www.agrimoney.com/news/pension-funds-barred-from-saskatchewan-land-purchases–8926.html
That’s too bad for investors like myself. About 8 out of 9 residents in Saskatchewan surveyed opposes foreign ownership of farmland. I can see it from their perspective. All this speculation from non-Saskatchewan residents are driving up the cost of farming and rent across the province. I’ll have to how any new policies will affect the value of my farmland next year. If prices start to fall around the Yorkton or Regina area then I may try to sell my land and take the profits while I can. Who knows.
I look at your net worth every month and it constantly amazes me! How did you build up such a massive amount of stocks (CDN and US) on your small salary? I’d love to just copy you and do it your way, my way of saving involves months and months of painful scraping before anything happens.
Also with the oil crash and it mostly affecting Alberta and Saskatchewan (houses in my city Calgary have already suffered greatly with more to come I hear), do you think land will be affected by this also? Also does your net worth include everything, like those bonds you just purchased that you paid off with the rent cheque?
The biggest factor to impact my net worth this year has been the stock market. A large stock market swing, in either direction will send my personal wealth one way or the other. So in September my net worth shrank. But the markets recovered in October and my net worth is up again. At the end of the day I’m not too concerned with my paper wealth. When I eventually retire it will be the income I generate from dividends that’s going to sustain my lifestyle. 🙂 I’ve build up my stock portfolio using leverage and luck. I borrow other people’s money to buy stocks so I can buy twice as many shares as I can afford on my own. Then I got lucky because the stock market has been mostly going up for the past 5 years! The Nasdaq Composite, for example, is almost 100% higher than in 2010. And due to my 2:1 leverage, it means the stocks I’ve bought have returned about 200% so far. I also got lucky in that most of the stocks I’ve picked have performed well. Of course if the stock market were to have gone down over these last 5 years then… Read more »
I have a question. Based on your above summary you have two mortgages:
Mortgage = $191,800
Farm Loans = $198,800
For a total of $390,600
You also a monthly expense “Debt Interest” of $1400. Is this just the combined interest payment on those two mortgages? And you then are also tracking the change in your debts (-400 and -500 respectively).
Am I correct in figuring then that your monthly carrying costs for your two mortgages is:
$1400 interest
$400 principal home
$500 principal farm
For a total of $2300
Hopefully you can clarify. I just want to understand how you are tracking this.
Thanks
The $1,400 is the monthly interest cost on all my debts 🙂 (about $500K)
Here’s the break down:
Mortgage $192K at 2.3% annual interest rate = $370/month (I have a variable rate mortgage)
Farm loan (Mortgage 2) $199K at 3.43% interest rate = $570/month
Margin loans $54K at 4.35% interest rate = $200/month
All remaining debts about $55K at 5% on average = $230/month
So total monthly interest cost = roughly $1,400 since I round everything.
But yes, the -$400 and -$500 respectively are the principal amounts I’m shaving off my debt balances.
The carrying costs for both my home mortgage and my farmland mortgage combined would be:
$940 interest
$400 principal home
$500 principal farm
For a total of about $1,800.
All my other debts, except the RRSP loan, is revolving so I can control how quickly or slowly to pay them back. But my 2 long term debts (mortgage and farm loan) have fixed payment schedules.
Ok, Another question then. Looking at just your real estate, you have:
Asset:
Home = $259,000
Farms = $411,000
Liability:
Mortgage = $191,800 (-400)
Farm Loans = $198,800 (-500)
In simple accounting terms: Assets = Liabilities + Equity
You don’t have Equity listed anywhere, other than as the total difference between your Assets and Liabilities, which is just another way of listing it. I’m curios though, is the Asset value you have listed the (a) purchase price or (b) the expected fair market selling price at the current time?
The home value is determined by taking my purchase price of $230,000 in 2009, plus inflation over time (CPI.) Every January I re-value my home’s price based on the previous year’s inflation data.
For my farmland I use my initial purchase price, plus the average of inflation (CPI) and the FFC’s annual farmland value report. 🙂
Both calculated values for my home and farm are above purchase price, but they should be below the current market value. I say “should be” since I’m not 100% sure what my home is worth today if I wanted to sell it, haha. But I can say the government assessed value is higher than what I have currently listed on the blog ($259,000.)
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