Thursday 16 October 2014

$2,111,011 Net Worth Update October 2014

My Net Worth Update October 2014

     October 16 / 2014  : Updated every mid month


Home 2014 assessed value                                  total                 $1,190,000

-Equity Investments
Tax free saving account TFSA -                 $32,870
Retirement saving plan RSP -                  $105,840
Canadian margin account -                      $286,059
US margin account ( Ex Rate 1.1076)-    $202,729
margin available $102,775
                                             Total equity    $445,413
                                                                               total:                 $627,237

-Rental Property
Warehouse Income Property 2014 assessed value
                                                                               total:                 $384,000
-Start Up Company
Brewery start up share value
                                                                               total:                   $85,000

Checking account                                        $1,306
Business account                                        $5,292
                                                                               total:                    $6,598

                                                                        Assets total :          $2,292,835

US margin account   
(margin rate 3.75%) 
CDN margin account
(margin rate 3.00%)
                                                                           Liabilities total :        $181,824
                 August 2014 Grand Total Net Worth:      $2,111,011

                                     Gain/loss from last month - $28,473

Sept.    2014 : $2,139,484 Details Link + $13,390
August 2014: $2,126,094 Details Link + $14,613
July    2014  : $2,111,481 Details Link  + $5,584
June    2014 : $2,105,897 Details Link   + $3,165
May    2014 : $2,102,732 Details Link

  Investment Yields
- Start Up Brewery : No expected return for a year

-Warehouse commercial property Income 
 $1,912 a month minus $678 expenses ( maintenance,tax) =  Per month: $1,234                                                      Yield on assessed value:  3.85%                Total year profits :$14,808

                                                              Forward Monthly dividends Avg:  $2,272
                                                              Total Forwards dividends yearly $27,273

 Margin costs  forward interest per year $6,440

    Grand Total Passive Forward Yearly Income :    $35,641
                  Per month average total     :          $2,970

 In Summary-

Wow what a dip in the markets. Markets tanked from my last net worth wiping out over 2 months of solid gains. Oh well thats how the markets go. I was a month late making margin plays as I bought at the height as well which also hurt me. No worries though as the margin I am using is only less than 10% of my net worth. I am not planning on selling anything and riding out the storm.

Despite the big hit on my portfolio my average monthly forward passive income has increased from $2,533 to $2,970 largely due to the margin REIT play I made couple months ago. Also the weakening Canadian dollar helps out my portfolio a lil bit.

Plan right now is to pay down my margin a bit and see how the markets shake out before making any other moves. Some stocks look very attractive right now but like they say you do not want to catch a falling knife in this volatile market right now. Will be keeping my eye on the energy and financial sector right now as potential buys.

How is your guys October shaping up and are you buying, holding or selling right now?

“The best time to plant a tree was 20 years ago. The second best time is now.”Chinese Proverb


  1. Ouch, sorry to see that dude :( At least you have those growing income sources to soften the blow, which is nice. I'm holding right now for the most part and doing a bit of buying if the opportunity is right. Unlike you I don't have a lot of free margin room. A couple days ago I had to deposit some money into my margin account because my borrowing limit was getting squeezed haha. Oh well. As long as we understand the investments we make and the financial situations that we could potentially be in then there's no need to panic. :D

    1. Yah thing with margin its constantly changing how much you have available. Good to have a comfy cushion with it.

  2. Thats gotta hurt. Sorry to see that your networth dropped by 28K. But thats the name of the game...keep at it. You are still doing great compared to the rest of us :)


    1. Yah no worries. Imma big boy and know there will be bumps in the road. Gotta stay the course!

  3. Ouch about the dropping net worth but makes sense considering the stock markets. Your overall net worth is still looking good! Good idea on paying off some of the margin so you're not exposed too much.

    1. Will be interesting to see where the market lands next few months.

  4. I am looking forward to see which "stocks look very attractive right now" from you. With volatile actions in the market lately, I picked up CVX, GE, BP, and JNJ. Thanks. Nguyen

    1. Energy and financials lookin pretty good right now. Suncor, BP, Chevron, and the big six Canadian banks!

  5. This market is beating down portfolios! Luckily, I'm a beginner so it equals better prices for me, as I'm not worried about the overall value of my portfolio but buying stocks on the cheap! You have an impressive overall portfolio of assets though, so I'm sure it will recover very quickly from this recent dip.

    1. getting a bounce back last couple days, so hopefully i get a green month next time i report!

  6. Dear Lord, you lost almost as much money in one month as I make in an entire year after taxes! :) I guess that really shows we should put on our relativity glasses when looking at monthly gains or losses.

    Here's to better performing markets over the next couple of months,

    1. Yah everything is about perspective. 1-2% moves is fine with me.

  7. October has been a roller coaster in the markets. Ive been buying on the dip we had a couple weeks ago and will buy more if it dips again. I don't generally sell much as my timeline is so long

    1. Kudos to who that bought the dip. was such a short time frame of dip and recovery that it was hard to time

  8. There's definitely been some volatility in the markets this month. As long as your passive income keeps going up I wouldn't worry too much about month-to-month market changes. These unrealized losses aren't much of a concern since I plan to keep most of my holding for the long-term.

    Keep up the good work!

    1. Yeah short term u could go mad but just gotta be patient and not hit the panic button ever.

  9. To answer your question... I'm buying. The market sell off did not phase me as I continued my stock purchases for the month adding to my TD, BNS and UL positions. While it's never fun to watch the value of your stock portfolio decline so rapidly it does offer you new opportunities to deploy cash. For a long time the complaint of the dividend investor has been that the market was so high and that valuations needed to come down. We got what we asked for a couple weeks ago.

    1. grats on the well timed dip buy. I wish I took more advantage lol

  10. I trimmed some speculative stuff which I had ridden pretty hard to some nice gains. I wanted to get my margin in order, so cut it back a little. Overall its still very low as a % of total stock equity, but I used it as an excuse to cut back on some stock that had attained good gains. Good to see youre still sitting pretty overall though!

    1. With a dip like this last one I had to take a good look and see how my margin was affected. Too much margin will induce a call on it so gotta be careful in those regards. More than twice fully leveraged you are playing with fire.