Wednesday 24 September 2014

From Super Reits to Stupid Reits lol

Recently last month I took a gamble and purchased $150k worth of Reits on margin LINK

Ohhhhhhh how it has not been going to plan so far.

$152,669 has plummeted down to $146,045
That is a $6,624 loss so far or 4.3%. Wow that is a big drop for a time period of only 28 days in the so called safe investment of real estate.

Also I have paid $229 in interest for my (3%) margin account to borrow the money to invest.

On the bright side I have received $914 in dividends so far from just this play as they are all monthly payers but whats the point really to earn 7.5% in dividends a year when your investment goes down 10% lol.

In Conclusion

So far it has been a bad investment but I am not worried about it just yet. It is early as its only been a month. I will give it a close watch to see how things shape up in the coming months and continue to pay down my margin debt from dividends received. I will make periodic updates on just the REIT play to keep you people informed.

In a splurge purchase I have purchased a new phone which will not be here till mid next month. It is a lot of money for a phone. Sure I could get one subsidized from my carrier but I really dislike contracts as my last provider really took me to the cleaners as I tried to switch. I dont spend much on myself and its an item I use very often. Plus my last iphone 5 lasted me over 2 years now which is the longest I have ever had a phone without upgrading. I am hoping for this new phone to last another 2 years thus the apple care warranty. I am firmly against extended warranties but I feel justified with this one as phones are very accident prone and I will be running this one without a case so it can fit in my pocket still lol. This is the second most expensive phone I have ever owned. WHATTTT u say???? Yes In 1996 I spend over $1600 on a Motorola StarTAC. LOL How far have we come. The StarTac was the leap into the future at the time before texting was a thing and 50 cents a minute was the going rate for a phone plan.

Other News

I have been playing with about 100k in my US margin account. I have been selling Apple puts for a few dollars below market price and the 300 shares of Apple I do have I have been selling covered Calls for a few dollar above. Overall I am bullish on Apple and have been playing the stock to take advantage of it.

I still hold 600 shares in my retirement account I am not touching or playing options with. My max 100k play is to see what kind of money I can make options trading writing aggressive options.

In my coming posts in a few days I will give a Grandma Olga ETF update LINK
Also a project debt Ali update LINK

So how have your guys plays , buy,sells and options been? Also what is the most you have spent on a phone and what has been your favorite. I think my old time favorite was my Motorola black MicroTac elite phone. Was great with slim detachable batteries and looked very classy at the time.

Sunday 14 September 2014

$2,139,484 Net Worth Update September 2014


My Net Worth Update September 2014

     September 14 / 2014  : Updated every mid month


Home 2014 assessed value                                  total                 $1,190,000

-Equity Investments
Tax free saving account TFSA -                 $33,601
Retirement saving plan RSP -                  $108,173
Canadian margin account -                      $302,693
US margin account ( Ex Rate 1.1076)-    $160,309
margin available $167,215
                                             Total equity    $472,839
                                                                               total:                 $642,800

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

Checking account                                        $558
Business account                                       $7,087
                                                                               total:                    $7,645

                                                                        Assets total :          $2,309,445

US margin account     $19,732
(margin rate 3.75%) 
CDN margin account $149,187 
(margin rate 3.00%)
                                                                           Liabilities total :        $169,961
                 August 2014 Grand Total Net Worth:      $2,139,484 

                                     Gain/loss from last month + $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:  $1,264
                                                              Total Forwards dividends yearly $15,599

    Grand Total Passive Forward Yearly Income :    $30,407
  (This passive total is a bit out of date but will get around to updating it soon)
                  Per month average total     :          $2,533

 In Summary-

Another 10k plus month. I am overall pretty happy with it. I will take 10k gains anytime I can. Primarily the gains were all market gains in equities. I had some good run of Apple stock recently and I have hopped in and out of it a couple times this past month. I have been buying the dips and reselling it higher. I plan to continue with this for a little while especially with blockbuster Iphone 6 numbers coming. I have rewarded myself by preordering an Iphone 6 plus 128gb in space grey. Time to sell off my 2 year old perfectly functioning Iphone 5. I dont have much indulgences and a couple gadgets here and there is all I need.

My 150k Reit gamble is not paying off so far. I am down a couple of percent on them so far. I did however sneak in a day before ex-div date so a .625% was expected but not 2%+. I will give more specifics in a later post. All my new trades and movement has made things hard to track and separate. In a coming post I will detail what I have going on. Passive income gets a few more steps to calculate when some trades are short term and adding interest per month from margin debt.

The Canadian dollar continues to fall which boosts my Canadian net worth total for which I can not complain. Sorry I have not been too active of the blog of late because I got quite a few things going on. I am working on some real estate deals, I am helping even more around the house especially with my oldest starting junior kindergarten as I often am looking after my 2 year old boy. Also My dad is having some medical problems and had to make a few hospital visits. Busy busy what better busy than nothing going on at all. In a few days I will have an update to my holdings and strategy.

How is your guys August and Sept shaping up??

Good Day and Grind On!

Thursday 4 September 2014

August 2014 Dividend and Monthly Report Update

August proved some changes in my Portfolio. From sneaking into Apple dividends with 1000 shares to buying over 150k Reits on Margin. but we cant forget the main reason for it all. THE DIVIDENDS! One day I will not have to make any moves at all and just live off my dividend income. Till then I will grind aggressively forward!

Here is my Dividend total for August

          2014 Running Total - $3861.82
                            *Aug - $1,482.38    Interest total  $87.79
                            *July - $1,239.74       
                            *June -  $608.62
                            *May -  $531.13

August 2014 Dividends Paid
 58.75 - REI.UN RioCan Reit
 39.37 - HR.UN  H&R Reit
105.00 - COS Canadian Oil Sands
 18.33 - SJR  Shaw Communications
 50.70 - BMO Bank of Montreal
 28.00 - D.UN Dream Office Reit
 22.92 - ENF Enbridge Income Fund
 52.65 - AX.UN Artis Reit
 46.00 - CPG Crescent Point Energy
 38.00 - PG  Proctor Gamble
 30.60 - CL Colgate
 60.31 - KMI Kinder Morgan
704.07 - AAPL Apple
 8.80  - DOL  Dollarama
 37.74 - CLX Clorox
 50.91 - VZ Verizon
 71.00 - RY Royal Bank
 59.23 - T AT&T
$1,482.38 - August Total

      $87.79 -August Interest Total

- Added new interest total for cost of borrowing on Margin- August interest total $87.79

- RY Royal Bank increases annual dividend by 5.6% from $2.84 to $3.00
- BNS Bank of Nova Scotia increases annual dividend by 3.1% from $2.56 to $2.64 making it its second dividend increase this year

In Summary

Highest total yet. Since I have started borrowing money at margin I will be paying interest charges that will eat up my dividend totals but as long as my dividends total outweighs my interest total it will all be good. Yes it is risky to borrow money to make money but it is not a significant portion of my net worth and I will be fine if things go sour.

Real Estate News

Not much too report but been pounding the pavement. I have been looking at rental income homes, Potential downsize homes and Lots for sale to build on. There has been a few interesting opportunities but not the right one yet for me to jump on.

Also helped my parents list a home of theirs for sale. Maybe an early inheritance soon coming for me. We will see how things pan out. I am not counting on or expecting anything from them but hey if they want to help me and fund my children's education I would be very grateful.

Market News

Portfolio is rebounding quite nicely from the other months late dip. I hope to report a decent net worth gain mid month if things stay on track.

As detailed before I made a big bet LINK on APPLE for 100k. Things worked out and my option was called for an overall 5k gain after all fees and borrowing costs. The last few days Apple has dropped hard due to the ICloud Scandal. I have to admit I browsed through the pics of Jenifer Laurence ( Thank U Intrawebs!!!) I have since jumped back into another 1000 shares of APPLE at $99.11 average cost which is so far down a $1. I plan on writing options again on it once the price rebounds on it. I am hoping for another 5-10k gain on this bet and will update its progress.

My Big REIT purchase  LINK is down a lil bit 1% overall. I am not worried because Bank of Canada just announced no change to interest rates and also I snuck in a day before the Ex-dividend date on the REITS so it naturally is down a few days after.

Brewery News

Not much too report but just some standard closing documents for share structure. Official possession of new building is next month but we have access to it now. Equipment has been ordered and building improvements have already begun. Hopefully by Christmas we will be pouring our first batch of brew.

Other News- In perspective of it all

School is in session. Oh not for me but my daughter. She is starting junior kindergarten. We have been looking into schools in the area and we have found a non religious private school close by. Yes it is very pricey but I want better for my children's education. I know for me growing up the school system failed me many times. I just skated by as a young punk in over crowded classrooms with teachers not giving a crap about you. For me school was not a safe place and the last few years of high school I carried a knife with me to school for my own protection and a couple occasions I had to use it. School was an extremely stressful time for me and I dont want my kids to have the same experience.

This was a one of reasons why I moved out from the big city. I am very grateful and lucky for what I have. That said I have been debating back and forth about private school for a few years. Yes it is an enormous cost. I have estimated it will cost me $450,000 just to put both my children through to grade 12 and that's not including post secondary. Insane huh. How can one justify this cost.

To me its all about sacrifice. I am willing to sacrifice A fancy home to live in more modest dwellings. I am willing to skip out on personal indulgences (New cars, Vacations, Man toys) for my kids education. This is why I have been looking at downsizing my current home primarily to tell you the truth. Its an investment in their future. As a parent I have learned to stop being so god damn selfish. I used to be Scrooge McDuck grasping my money tight. I was wealthy but miserable. My only purpose was to make money. Now I realize life isn't just about money but living a fulfilled life with purpose. My purpose is to be happy and take care of my family. Dont get me wrong as money places a close second behind my family.

So as my daughter just finished her first day at school I was very impressed with the school and happy about my decision. The amount of time teachers spend with students, the amount of staff on hand, the smaller classroom size,the increased amenities at the school, the extra curricular activities they offer. Its everything I never had at a school. Perhaps my daughter will be CEO of a a fortune 500 company or a hedge fund manager one day. You never know!  Even if my daughter wants to pursue a sports, arts career I am fine with it. Hell even if she wants to be a mechanic or a plumber as long as she has the opportunity to do whatever she wants to is all I can ask for.

This does not deter my end goal in life. My end goal is still to grind forward every year with an increasing net worth. I don't want to die penniless but hand down a legacy my kids can continue with as well grinding forward into the billions and trillions one day. I want them to become asset grinders always reaching for that next rung and challenging themselves in life.

So how was your guys August for investments? Any thoughts on private school?