Tuesday, July 5, 2016

Net worth update - July 2016

Here is a breakdown of my networth on July 5th 2016 at noon.  I'm changing the presentation a bit to adjust for the new way I think about asset allocation.

Assets
Cash                         9 642 $ (+    4 832 $)
Bond/GIC                   129 201 $ (-    5 648 $)
Stocks                      86 912 $ (+    9 919 $)
Primary Residence          477 800 $ 
Rental Real Estate         680 700 $ (+  460 887 $)
Employer pension fund      207 000 $ (+   66 000 $)
Son’s RESP + account        31 825 $ (+    3 829 $)
Daughter’s RESP + account   18 904 $ (+    3 498 $)
Wife’s TSFA +account        35 677 $ (+      209 $)
Total assets             1 667 135 $

Liabilities
Visa                         1 455 $ (+    1 455 $)
Rental Building Mortgage   457 140 $ (+  457 648 $)
Total Liabilities          458 594 $

Net worth                1 219 067 $ (+  84 932 $)

So that a huge increase this quarter. Here are some highlights of where the change came from:
  • 66k$ came from the new numbers on my 2016 pension report.
  • My bonds interest is around 1 200$ by quarter but I sold a market linked GIC so total amount dropped.
  • Stocks are up from new purchase with the money I got on my GIC sale and dividend.
  • The kids RESP are up because of my mom's gift, the money I invested, federal and provincial grant and dividend.
  • My tax return gave me 10k$. 

Overall a pretty solid quarter. Q3 2016 will defenitly not be as good. I have school tax and my daughter private school to pay so I'm starting with a 10k$ headwind.

I'll update the portfolio page later.

Monday, June 27, 2016

Brexit

My finances are really on autopilot. I was so busy enjoying the poll and playing my new MMORG love (Black Desert Online) that I didn’t even notice the whole Brexit thing.

The value of my ETFs dropped, erasing all of this year’s gain and putting my 3500$ in the red compared to January 1rst this year. My reaction to all of this is a big yawn. I’m long term buy and hold. Shit will happen and we will adapt. 

My dividends arrived on June 23th. I got 550$ in my own accounts and a little than 900$ if I count the whole family. I had 1830$ sitting in cash in my TFSA. I followed the plan and made a purchase today. I used the purchase to rebalance toward my allocation and got 66 VXC at 27.32$. I’ll update the portfolio page with my July net worth update. 

As for my goal of getting all the money to pay for my daughter’s school by August, it doesn’t look so good. I still have 3000$ to find and only 3 pay check remaining. My wife’s birthday is coming up and I would like to change her 8 years old computer. I’ll post something when I have a plan.

Wednesday, June 8, 2016

Pension

I got the 2015 annual report for my employer pension fund.

I contributed 8 700$ this year. My employer matched this. It is a defined benefit pension so if I work till I’m 60 years old, I should get a yearly pension of 57k$ for 24 years of service.

To figure out my net worth, I use the amount I would get if I leave. Last year, I misread the statement and used 141k$. The real number was 141k$ in a registered account and 22k$ taxable cash so the real number should have been 163k$.

The number for this report (which is end of 2015) is …. 207k$! This is blowing my networth past 1.2 million so that’s another milestone on my way to my second million.

Also Vanguard announced dividends for my ETF. So we should be getting 895$ for the family across all out accounts.

On the budgeting side, we have to come up with 5800$ before the end of the summer for my daughter school. Cashflow is tight and can’t really add to my investment because of that. So basically I’m richer than I’ve ever been but aside from a number on my spreadsheet it doesn’t show in my daily life.

Tuesday, May 31, 2016

RESP

Yesterday I received the federal grant for my children RESP. It was now time to deploy the money.
  • My son had around 3700$ to deploy (2500 new contribution, 500 federal grant, 250 provincial grant, 450 dividend from last year). 
  • My daughter had around 3500$ (same new money but less from dividends).
Both are still too low on stock according to the Canadian Couch Potato chart. Anyway, I’m not buying bonds or GIC with the current yield.

I used the buying opportunity to rebalance to their target 50/50 Canadian/NonCanadian.
  • My Son got 70 VCN and 57 VXC.
  • My Daughter got 66 VCN and 53 VXC.

Wednesday, May 25, 2016

Slow month

Notting much is happening financially.

I received the provincial grant for my 2015 contribution to my kids RESP. I should be getting the federal grant for the 2016 contribution pretty soon. I’ll make a purchase then. Stocks have been doing well in the last few days… Just my luck, stocks are high when I’m about to purchase.

I finished paying my daughter school for 2015-2016 and made the first 2500$ payment for 2016-2017. I need to come up with 5500$ for the end of August so we are trying to minimise expenses this summer.

We had a neighbourhood garage sale last weekend. We made 101$ selling old stuff we didn’t need anymore. Extra cash is always nice but more importantly there were two kid bikes in the stuff we sold which were taking place in the garage. If calculate with my municipal assessment and the size of my house, I’m at around 150$ per square feet. The bikes where taking about 4 square feet in the garage so from my point of view, I got 600$ value by selling them !

Sunday, May 8, 2016

Mapping the rest of the year

I’m trying to map out what my moves are going to be for the rest of the year. I have to take the following fact into consideration:
  • I got 6000$ left cash in my account.
  • I got 1800$ current on my Vvisa balance.
  • My TFSA contribution is capped for the year. I got some room in my wife’s one (I need to check exactly how much, around 15k$ I think). 
  • I prepaid my municipal taxes for the rest of the year on my house. I still have two payment left on the rental building but that comes out of my rental income so it’s pretty much transparent for me.
May
  • I have 2500 $ to pay for my daughter private school for year 2016-2017.
  • I should receive the federal and provincial grand on my kids RESP. I will make a purchase when I have both grants.
June
  • I should get my employer pension report which will mean nice bump in net worth.
  • I will have make the last payment of around 2000$ for my daughter school for year 2015-2016.
  • My paychecks will start getting bigger because I’ve reach the EI contribution cap.
July
  • I will receive my dividends on my ETFs. I will make a purchase in my TFSA with the 1500$+dividend have in there.
  • I will receive my school Tax bill of around 1000$.
August
  • I have 5500 $ to pay for my daughter private school for year 2016-2017. With this I will have totally prepaid her school year which mean a nice 10% discount.
October
  • I will receive my dividends on my ETFs .
With 5500$ to come up with for August, I will have a hard time trying to divert money to saving this summer. I figure I should be able to go hard core saving starting in September so the end of the year will be focused on building my wife’s TFSA.

I don’t like it when I’m not saving on each paycheck but you have to look at a longer timeframe. My bank has a tool that tracks your money flow and I had a saving rate of 20.58% over the past year. That is from my net pay. You also have to consider the fact that I have 9.5% plus employer match taken at the source for my pension fund so my real saving numbers are higher.

Thursday, April 28, 2016

Rebalancing

The money from my expired GIC arrived in broker RRSP today. According to my target allocation I’m aiming for 2/3 VXC and 1/3 VCN. I was at 62.9% VXC when I looked.

VXC has been hit hard since the start of the year. It started the year at 30,41$ and is now sitting at 28,05$. The big culprit is the Canadian dollar that went from 72 cent to almost 80 today. Since VXC is not currency hedged, any increase in the CAD will hurt it. Even if I don't like it when the number goes down, it the whole point of using unhedged ETF. Last year when the dollar dropped, VXC was on fire. 

So it was now time to buy and the allocation said to go with VXC but I had a little bit of hesitation before pulling the trigger. Emotionnaly it's hard to invest in something that lost you close to 5k$ in the last few month. But then logic kicked in. What I'm doing now is buying low and it's a good thing. Anyway It's RRSP money that I'm not touching for at least 15 years. I got 243 shares at 28,10$

Also, my mother told me she was contributing 4k$ again this year to my kids RESP. I added 1k$ of my own to get the maximum grant. I already made the contribution and it's sitting in cash their RESP account. I'm waiting for the governement grant and the July dividends to make a purchase.

I also have 1500$ sitting in cash in my TFSA but again I'm waiting for the July dividend to make a purchase.