Saturday 17 May 2014

First NET WORTH update May 17 2014

So here it is!! The big show show. The whole shebang ! Kind of daunting to put it out there where the world can see. I am a fairly conservative guy and I don't talk finances with anyone in my family. I know I am very fortunate to have what I have and it came with a heavy price. Most of my net worth came from being in the right place at the right time in primarily real estate. My net worth has suffered last few years due to nothing really coming in , a big tax man audit and took some time off to raise and care for my kids. I am pretty much unemployed by choice but i consider myself an entrepreneur always looking for an opportunity. I am now poised in a resurgence to get it going in the right direction again. I have taken steps to reduce my expenses, make all my money work for me, sell items I know longer need, constantly reading ways to increase my financial independence , attending some finance courses and most importantly getting my butt in gear. I don't really have a final goal to reach but I am not satisfied. I am hungry for more. I would like to see my my Net worth reach in the 5$ million mark in 10-15 years which I think is quite attainable if I hustle hard.

My thoughts on debt. As you can see I don't like it. I don't buy what I cant afford. In the past I would do almost anything to pay off any debt I ever occurred asap. I am not opposed to take on any debt in order for larger gains but I do not see that right big opportunity available right now to do that. I would consider taking out a mortgage on my house if a great property or business deal came up. If the equity market were to crash I would seriously consider buying equities on my margin account even but for now I will buy what i can afford at market price.

The older I get my focus on investing is changing to safer choices unlike my younger days where it was all risk. Too much to lose now and too much responsibility to my family so I must change my approach. I really took a liking to the dividend growth stock approach as it provides an income and future growth. I plan to reinvest at least 75% of my passive income yearly to keep the money machine going. In the past I have always been a market timer and big growth stock guy buying and selling. I have come to realize the equities I purchased and sold many moons ago have appreciated enormously and those small gains i made doing the quick flips do not add up to what I could of made. Time for a more disciplined approach of buy and hold!

I am heavily asset heavy on my home and looking to downsize once I see the right place but that could take a year or two. My investment ratio is only 43.4% of my net worth and I would like that number much higher and into the 60%+ range eventually and hopefully in the 70% plus range in a few years.

May 17 / 2014


Home 2014 assessed value                                      total:                  $1,190,000

-Equity Investments
Tax free saving account TFSA -           $32,666
Retirement saving plan RSP -              $94,796
Canadian margin account -                  $84,795
US margin account -                             $76,230
                                                                                   total:                   $288,487

-Other Investments
Warehouse Income property 2014 assessed value   total:                   $384,000

chequing account                                    $5,881
Business account                                  $134,289
Chequing , sold mutual funds   aprox    $100,075       
                                                                                   total:                   $240,245

                                                                    Grand Total Net Worth:             $2,102,732


Total investments and cash available     $912,732
Total non-income fixed assets  (home ) $1,190,000

Net worth Ratio
43.4% Investments and cash
56.6% Fixed Assets

  Investment Yields

-Warehouse commercial property Income 
after expenses aprox                                        Yield:  4.31%                 $16,560

-Equities 288,487                Average Forward Yield  : 3.52%                 $10,174  
                                          Grand Total Passive Forward Yearly Income :       $26,734


- I am looking to invest 100-134k of my cash in next month or two into equities.
- I am keeping about 75-120k for a business opportunity in a brewery start up.
- My net worth does not include my vehicles or personal belongings
- Not included is my wife's account where I have about 3-4 years of family living expenses in there and her own investment account
- Us dividends are subject to a 15% withholding tax but I did not adjust the dividends to Canadian currency so its close to a wash but still like minus 5-6%
- My home is somewhat underpriced by 100-150k but will use govt values for now
- My warehouse is somewhat overpriced by 10-15k but will use govt value

If anyone has any suggestions or comments for me just holla!


  1. That's incredible that you have paid off all your debts. I commend you for that. Good luck in reaching all of your goals!

  2. You're in great shape for being under 40 with a stay-at-home wife and two kids. Congrats!

    Why are you looking to downsize your home in a few years? I wouldn't worry about having a higher real estate allocation right now. As you said, your investment ratio will only grow - you just need to give it some time.

  3. I want to downsize because the older I get the more of a minimalist I have become. Also maintenance is quite high at my home. It has a big yard and garden that requires mucho maintenance and that is work I quite dislike lol. Its a big house 3300 sqft and its more than I need. I think 2500 sqft would do me just right as long as I get a small office tso I can plot and scheme about world domination in peace! It makes me a bit nervous having so much equity especially with a housing market that is over inflated and due for a correction. I would be at much more ease if a housing downturn were to happen with a cheaper home. But everyone in the family is attached to the house but me. With that I think I will just keep my ears open and see if something fitting pops up at the right price and just hold then. The only way I would sell right now is if I find the right place first which may never happen with my very picky criteria.

    Thanks for dropping by and the kid words! Caio for now!