Yet another month of record highs in the financial markets. I hope everyone had a great November. 🙂 In terms of changes to my balance sheet I’ve added 100 shares of Enbridge stock to my portfolio, creating more passive income for future months. Part of this purchase was financed from a margin loan at 2.3% with IB. Borrowing money at low interest rates to invest in long term appreciating assets was how many people became millionaires in the past.
Liquid’s Financial Update
*Side Incomes:
- Part-Time = $700
- Freelance = $800
- Dividends = $700
- Interest = $400
- Fun = $400
- Debt Interest = $1300
*Net Worth: (ΔMoM)
- Assets: = $1,150,700 total (+14,300)
- Cash = $8,500 (+700)
- Canadian stocks = $164,200 (+7300)
- U.S. stocks = $105,800 (+4000)
- U.K. stocks = $21,100 (unch)
- RRSP = $91,100 (+1900)
- Mortgage Funds = $32,000 (+100)
- P2P Lending = $22,000 (+300)
- Home = $270,000
- Farms = $436,000
- Debts: = $468,700 total (-2,100)
- Mortgage = $180,900 (-400)
- Farm Loans = $186,300 (-500)
- Margin Loans = $58,900 (+1200)
- TD Line of Credit = $6,700 (-1300)
- CIBC Line of Credit = $21,000 (-1000)
- HELOC = $14,900 (-100)
*Total Net Worth = $682,000 (+$16,400 / +2.2%)
All numbers above are in $CDN.
I’ve been trying to save enough money over the last few months to invest another $8,000 into my Lending Loop account by the end of the year. I’m also currently looking for a new job to increase my cash flow. We’ll see how that goes. 🙂
On the side note, shout out to my pal Jeremy from Modest Money who got featured on an Equities.com article. He’s got some interesting investment ideas and we sometimes talk about stocks. You can also check him on stocktwits.
——————————————————————–
Random Useless Fact
At any given time, about 174 quadrillion watts of the sun’s energy is hitting the earth.
That’s an awesome gain in a month. Your balance sheet graph looks great as assets continue move higher while debts in downward trends.
Regarding lending loop – it is a new concept after the 2008-2009 financial cries, and nobody knows what will happen during an economic panic moments.
I hope you’ve done enough research already 🙂
Best Regards,
I agree. We don’t know yet how Lending Loop will correlate with the financial markets when the next economic panic happens. I like how the company already vets the loans and only a small percent of applications make it through. But investors still have to be cautious.
What a fantastic month!! I’m cautious on jumping on the Enbridge bandwagon myself. Is the interest from your margin account deductible or is that only if you had a HELOC for Smith Maneuvre?
If you get ENB we can become business partners since we’re invested in the same company, lol. The interest from my margin account is tax deductible since I’m using the loan to buy an income generating investment.
F35 –
Adding $16.4K in one month is no joke, plus – your income seems steady & sound. How has your rate been moving from your margin account? Congrats on crushing net worth targets.
-Lanny
Thanks Lanny. Rate has been moving higher about 50 bp this year. It’s still a lot lower than what I was paying at my old bank last year. :0)
Liquid, Looking very good. Another fine month. Let’s hope our mutual holdings in ENB continue to perform well. Tom
It looks like ENB is about to climb over $50/share soon. Glad I bought in the mid 40s.
Hi Liquid.
I have been enjoying your blog. I also bought SK farmland in 2011 and it has been a stellar investment for me.
There was a good article in the Globe & Mail the other day called “The Cracks in the Enbridge Dividend Story” that’s worth seeking out. Essentially the growth in Enbridge’s debt is equal to the amount they’ve paid out in dividends over the last 10 years. Author of the article is very critical of Enbridge’s management.
Cheers
Also piled into ENB this month and got a nice little gain from the one day +6% pop after they confirmed dividend growth.
I’m very skeptical of their debt levels though. Does it make sense that they would keep adding debt and then paying out dividends? It’s crazy to keep borrowing and then paying out dividends at 5% annually.
Hi jambr403. Thanks for the tip. I found the article but can’t read it because of TGAM’s paywall, lol. I’ll have to find some way to unlock the content.
Beautiful curve my friend… Awesome when all that you’ve learned culminates into a clear visual of your performance. – Cheers!
Thanks Phil. 🙂 At this pace I may get to retire earlier than I initially planned.
Liquid,
I remember reading a post from you some time last year announcing you’ve left your full time job. Are you seeking full time employment again?
I currently have a full time job. But I’m currently on a 3 week break so I want to pick up some side hustle to fill the gap. 🙂
Congrats on your progress! Are you tracking your CAGR out of curiosity? I am curious to see how you do annually.
I don’t keep track of my CAGR across all my accounts. But my brokerage firm, TD, gives me a time-weighted rate of return. Over the last 12 months it says I’m up 16.07%. I will probably talk about it in a new post soon.