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:
- Part-Time = $1200
- Freelance = $900
- Dividends = $600
- Interest = $200 (from Western Energy bonds)
- Fun = $200
- Debt Interest = $1300
*Net Worth: (MoM)
- 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.
- Cash holdings decreased because I used some savings to purchase my startup investment.
- Both Canadian and U.S. stock portfolios grew.
- I purchased $3K of new mortgage funds in my RRSP. I transferred the $3K value from my “RRSP” category into “Mortgage Funds” instead.
- No updates to home and farmland values.
Overall August was a pretty good month. For September I plan to invest in some renewable energy. I found an Ontario based company that suits my investor profile, so I’ll explain what my plans are for that in a future post. 😉
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Random Useless Fact:
Smartphone cameras use LEDs for flash.
I am liking the diversity on the asset side of your investments. I am working on expanding into the alternative asset space also. Congrats on reaching a million dollars in assets. Great feat.
There are lots of alternative investments to choose from. But one limitation I’ve found is country borders. For example there are some opportunities in the U.S. like P2P lending that Canadians like myself can’t invest in lol. Good luck with your investments.
Pretty awesome progress Liquid millionaire. 😉
Haha, thank you. I like how you’re really trying to make that stick. 🙂
You list all your assets in C$ 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.
Yes, my “Stocks US” category is held in a US$ account. A portion of my “RRSP” category is also in a US$ account for when I buy dividend stocks listed in the U.S. I get paid in US dollars in these accounts and so far have not taken any money out or converted them back into CA$ yet. My investment with the startup company, 8tracks, is held in a US$ account with Wells Fargo. If the startup ever distributes dividends or capital gains to shareholders I will be receiving payment in US$ as well. That’s great how you were able to convert your currency in the past at parity. 🙂 I’ve done a little bit of that as well. One major contribution to the growth of my net worth in 2015 had been my U.S. stock portfolio appreciating so much when valued in Canadian dollars. The risk I’m taking now when investing in U.S. venture capital is that I’m converting CAD to USD when the FX is not favorable for me to do this compared to previous years. I think a better solution would be to sell some of my U.S. stocks if I want to buy other U.S. investments,… Read more »
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.
I wouldn’t be surprised if that happens. 2016 is the first time when regular folks can invest in venture capital alongside with other institutional investors. 🙂
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)?
Not at this time since the cap rate in most Canadian cities is too low to generate the kind of return I want. But I’ll consider it again when rent goes up or prices fall. 🙂
Congratulations mate you’re doing awesome!!!
Thanks. It’s been another great month in the markets. 🙂