Fiscal Update Nov 2019 – Millionaire Status Achieved

Best Bull Market Ever

Stock markets are at record highs. The year to date return of the S&P 500 is 25% – a staggering performance! But of course making money from companies isn’t just about percentages. Otherwise everyone would simply invest in hard liquor. Because where else can you get 40%? 😎

In 2008 my net worth was $0. But thanks to the strong market performance over the last 11 years I’m finally a legit millionaire! Hurray! 😀

I’m currently worth $1,024,500 😀.  Apparently only 1% of self-made millionaires become wealthy before the age of 40. So I feel very fortunate to have this experience now. But my journey is far from over. In about 3 years I will be 35 yrs old. By then I hope to realize my ultimate goal of becoming financially free – hence this blog’s name. 😀

Every few years I update my financial freedom progress. The last time I fully inspected my finances was in 2017. During that update I calculated my net worth to be $610,000. I guess I should post another update soon to see if I’m still on track.

In terms of which investments got me to where I am, the biggest heavy hitters I have in my portfolio are stocks and real estate. 🙂 Both asset classes have performed tremendously over the last decade. That’s the wonderful thing about investing. You don’t have to be highly educated or technically skilled. You can simply buy something and wait for it to go up. Then you automatically go along for the ride and watch your money grow. 😉 As a buy-and-hold investor of dividend stocks and real properties I’m able to keep my trading and management fees to a minimum. Here is my current asset allocation breakdown.

Why have investments gone up so much in value since the great recession? It’s primarily thanks to the central banks. Around the world they have quadrupled the money supply in the financial markets from $5 trillion, to over $19 trillion. Apple cannot issue shares via a new IPO, and nobody is making new land out there. So nearly all the newly printed money is chasing after existing, finite resources. The result? Investors win. Investors who use other people’s money to invest win more. And savers lose.

Although my wealth hasn’t changed much month over month, there’s something visceral about that $1 million figure that makes me feel like a proper Bourgeoisie. 🙂 Maybe it’s all in my head. But it feels pretty amazing to have this level of financial security.

However I have to be careful. With great wealth comes great temptations. The average millionaire goes bankrupt at least 3 times, haha. Both Henry Ford and Walt Disney lost all their money and filed for bankruptcy before achieving a more permanent level of success. I hope I can keep the moment going and continue to build up my portfolio. 😀 It would be nice to eventually earn a six-figure passive income from my investments.

Liquid’s Financial Update November 2019

*Side Incomes: = $3,200

• Part time job =$800
• Freelance = $500
• Dividends =$1200
• Interest = $700

*Discretionary Spending: = $2,400

• Food = $400
• Miscellaneous = $700
• Interest expense = $1300

*Net Worth: (ΔMoM)

• Total Assets: = $1,406,600 (+22,100) 
• Cash = $13,200 (+4100)
• Canadian stocks = $200,500 (+5400)
• U.S. stocks = $140,500 (+5600)
• U.K. stocks = $22,700 (+800)
• Retirement = $143,000 (+5300)
• Mortgage Funds = $37,700 (+600)
• P2P Lending = $37,000 (+300)
• Home = $367,000 (assessed land value)
• Farms = $445,000

• Total Debts: = $382,100 (-3,000)
• Mortgage = $185,600 (-500)
• Farm Loans = $161,900 (-500)
• Margin Loans = $34,600 (-200)
• Line of Credit = 0 (-1800)

*Total Net Worth = $1,024,500 (+$25,100 / +2.5%)
All numbers are in $CDN at 0.75/USD

I’m glad I blog somewhat anonymously. Things could potentially get complicated if my friends and relatives found out about my latest financial achievement. This is the biggest financial milestone I’ve hit so far. So I celebrated at the end of November by eating cake and watching Netflix. 🙂 #goodtimes

Although I feel pretty affluent today as a new millionaire, I am hardly alone in this wealth bracket. In fact my $1 million net worth is actually considered below average relative to other Vancouver households. Oh man.

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Random Useless Fact