Canadian Money Forum banner
41 - 60 of 105 Posts

·
Registered
Joined
·
969 Posts
Discussion Starter · #41 ·
Here is the Q1, 2016 net worth update. $6k savings in the first three months is way less of a saving than my expectations.

Net Worth -

2015 - $276k
Q1, 2016 - $282k (around 2% gain)

Expenses -

The average monthly expenses is around $1,500 in Q1, 2016. But it will increase during Summer and Fall. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
Q1, 2016 - $1,400 (Way better than Q1 of 2015)

Asset Allocation -

Fixed Income - 24%
Equity - 62%
REIT - 14%

I will be happy if I could reach to my net worth of $325k at the end of 2016.
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #42 ·
Here is the Q2, 2016 net worth update. $28k savings/gain in between Apr-Jun, 2016.

Net Worth -

2015 - $276k
Q1, 2016 - $282k
Q2, 2016 - $310k (around 9% gain)

Expenses -

The average monthly expenses is around $1,575 in the first half of 2016. But it will increase during Summer and Fall. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
Q1, 2016 - $1,400
Q2, 2016 - $3,350

Asset Allocation -

Fixed Income - 33%
Equity - 54%
REIT - 13%

I will increase my equity position (VUN & XEF) in the near future.
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #43 · (Edited)
Here is the Q3, 2016 net worth update. $20k savings/gain in between Jul-Sep, 2016.

Net Worth -

2015 - $276k
Q1, 2016 - $282k
Q2, 2016 - $310k
Q3, 2016 - $330k (around 6% gain)

Expenses -

So far, the average monthly expenses is around $1,978 in 2016. Hopefully it will decrease this quarter as auto insurance already been paid for a year in Sep, 2016. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
Q1, 2016 - $1,400
Q2, 2016 - $3,350
Q3, 2016 - $4,875

Asset Allocation -

Fixed Income - 33%
Equity - 55%
REIT - 12%

Since inception time-weighted rate of return -

Cash - (1.02%) (VCN & ZPR)
TFSA - 19.79% (ZAG & ZRE)
RSP - 41.11% (VUN, XEF, TDB 900 & TDB 911)

Waiting for market downturn to add more equities in the portfolio. :chuncky:
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #44 · (Edited)
Here is the 2016 net worth update. 20% or $72k savings/gain since 2015.

Net Worth -

2015 - $276k
Q1, 2016 - $282k
Q2, 2016 - $310k
Q3, 2016 - $330k
Q4, 2016 - $348k

Expenses -

The average monthly expenses were around $1,877 in 2016 that is $215 more than the previous year of 2015...we did a road trip to ON this year. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
Q1, 2016 - $1,400
Q2, 2016 - $3,350
Q3, 2016 - $4,875
Q4, 2016 - $6,441 (27% gain since last year)

Asset Allocation -

Fixed Income - 35%
Equity - 54%
REIT - 11%

Since Inception Time-Weighted Rate of Return -

Cash - 5.83% (VCN & ZPR)
TFSA - 19.56% (ZAG & ZRE)
RRSP - 47.10% (VUN, XEF, XEC, TDB900 & TDB911)

Waiting for opportunity to add more equities in the portfolio. Our company has decided to reinstate RRSP matching contribution program from this January. It is 5% of my yearly salary....free money is always welcome!
 

·
Registered
Joined
·
446 Posts
Here is the 2016 net worth update. 20% or $72k savings/gain since 2015.

Net Worth -

2015 - $276k
Q1, 2016 - $282k
Q2, 2016 - $310k
Q3, 2016 - $330k
Q4, 2016 - $348k

Expenses -

The average monthly expenses were around $1,877 in 2016 that is $215 more than the previous year of 2015...we did a road trip to ON this year. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
Q1, 2016 - $1,400
Q2, 2016 - $3,350
Q3, 2016 - $4,875
Q4, 2016 - $6,441 (27% gain since last year)

Asset Allocation -

Fixed Income - 35%
Equity - 54%
REIT - 11%

Since Inception Time-Weighted Rate of Return -

Cash - 5.83% (VCN & ZPR)
TFSA - 19.56% (ZAG & ZRE)
RRSP - 47.10% (VUN, XEF, XEC, TDB900 & TDB911)

Waiting for opportunity to add more equities in the portfolio. Our company has decided to reinstate RRSP matching contribution program from this January. It is 5% of my yearly salary....free money is always welcome!
wow that 5% is definitely a nice boost! congrats!
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #46 · (Edited)
Here is the Q1, 2017 net worth update. 6% or $22k savings/gain since Jan 1, 2017.

Net Worth -

2015 - $276k
2016 - $348k
Q1, 2017 - $370k

Expenses -

The average monthly expenses are around $3,160 in the Q1, 2017. However, it will drop down for the remaining of the year. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
2016 - $6,441
Q1, 2017 - $1,663

Asset Allocation -

Fixed Income - 43%
Equity - 46%
REIT - 11%

Since Inception Time-Weighted Rate of Return -

Cash - 7.62% (VCN & ZPR)
TFSA - 23.74% (ZAG & ZRE)
RRSP - 53.54% (VUN, XEF, XEC, TDB900)

Waiting for opportunity to add more equities in the portfolio.
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #48 ·
I didn't even include March dividend that I usually receive as DRIP in the second week of April. I have set up DRIP in all of my accounts....money makes money :semi-twins:
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #49 · (Edited)
It's been a while since I updated my net worth. Here is the Q3, 2017 net worth update. 8% or $30k savings/gain since March 31, 2017 even though I have purchased a van for $16k. It was paid in cash.

Net Worth -

2015 - $276k
2016 - $348k
Q1, 2017 - $370k
Q3, 2017 - $400k

Expenses -

The average monthly expenses are around $4,636 so far in 2017. This expense also includes the price of my van that I paid in cash. I am hoping it will drop down for the remaining of the year. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
2016 - $6,441
Q1, 2017 - $1,663
Q3, 2017 - $6,020

Asset Allocation -

Fixed Income - 35%
Equity - 54%
REIT - 11%

Since Inception Time-Weighted Rate of Return -

Cash - 8.61% (VCN & ZPR)
TFSA - 23.62% (ZAG & ZRE)
RRSP - 54.98% (VUN, XEF & XEC)

Although I spent around $38k on above-mentioned ETFs in between April and September, 2017, I am waiting for opportunity to add more equities in my portfolio.
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #52 · (Edited)
Here is the Q4, 2017 net worth update. 23.8% or $83k savings/gain since Q4, 2016.

Net Worth -

2015 - $276k
2016 - $348k
2017 - $431k

Expenses -

2015 - $20k
2016 - $22k
2017 - $47k

The average monthly expenses were around $3,898 in 2017. This expense also includes the price of my Dodge van that I paid in cash. I am hoping to reduce my expenses in 2018. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
2016 - $6,441
2017 - $6,839

I track dividend based on settlement dates. Also, I switched to all ETFs portfolio in 2017. Therefore, I will receive more dividends in January, 2018 that I used to receive in December.

Asset Allocation -

Fixed Income - 33%
Equity - 56%
REIT - 11%

Since Inception Time-Weighted Rate of Returns -

Cash – 14.28% (VCN & ZPR)
TFSA – 30.26% (ZAG & ZRE)
RRSP – 64.64% (VUN, XEF & XEC)

I hope I will be able to reach half million $$ net worth at the end of 2018.
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #54 ·
Here is the Q1, 2018 net worth update. Around 2.1% or $9k savings/gain since the beginning of 2018.

Net Worth -

2015 - $276k
2016 - $348k
2017 - $431k
Q1, 2018 - $440k

Expenses -

2015 - $20k
2016 - $22k
2017 - $47k
Q1, 2018 - $4.5k

So far, the average monthly expense is around $1,483 in 2018. Moreover, this expense does not include monthly expenses of $600 that I provide to my parents.

Passive Income (Dividend & Interest) -

2015 - $4,650
2016 - $6,441
2017 - $6,839
Q1, 2018 - $1,986

Asset Allocation -

Fixed Income - 32%
Equity - 55%
REIT - 13%

Since Inception Time-Weighted Rate of Returns -

Cash – 9.50% (VCN & ZPR)
TFSA – 31.26% (ZAG & ZRE)
RRSP – 64.55% (VUN, XEF & XEC)

I have some cash in my RRSP that is waiting for market correction.
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #55 ·
An idle mind is devil's workshop...I would really appreciate your comment/suggestion for the following NW analysis. Is it feasible to achieve around 7% ROI going forward while investing in broad based ETFs such as VCN, ZPR, VUN, XEF, XEC, ZRE and ZAG?

If I purchase a house in 2018 -

Text Font Document Paper

If I don't purchase a house in 2018 -

Text Font Document Paper
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #56 · (Edited)
Here is the Q2, 2018 net worth update. Around 8.6% or $38k savings/gain since April, 2018.

Net Worth -

2015 - $276k
2016 - $348k
2017 - $431k
Q1, 2018 - $440k
Q2, 2018 - $478k

Expenses -

2015 - $20k
2016 - $22k
2017 - $47k
Q1, 2018 - $4.5k
Q2, 2018 - $9.2k

So far, the average monthly expense is around $1.5k in 2018.

Passive Income (Dividend & Interest) -

2015 - $4.6k
2016 - $6.4k
2017 - $6.8k
Q1, 2018 - $1.9k
Q2, 2018 - $5.3k

Asset Allocation -

Fixed Income - 32%
Equity - 56%
REIT - 12%

Since Inception Time-Weighted Rate of Returns -

Cash – 17.70% (VCN & ZPR)
TFSA – 35.99% (ZAG & ZRE)
RRSP – 73.74% (VUN, XEF & XEC)

I have some cash in my RRSP that has been waiting for market correction…:)
 

·
Registered
Joined
·
3,066 Posts
Great savings rate!

How come you are keeping your low/medium risk ETFs in your TFSA/Cash and high growth stocks in your RRSP? I believe it's the exact opposite of what you want, tax-wise, for efficient compounding, sale, and eventual removal of the money down the road, isn't it?...
 

·
Registered
Joined
·
969 Posts
Discussion Starter · #58 ·
When I set up my TFSA, I thought I would use some of it for down payment. That's the reason, it has medium risk ETFs. I am not planning to buy ZAG anymore or next 10 years at least. I set up DRIP for all of my accounts and it's easy to manage ZRE with DRIP in TFSA.

My understanding is that it's more tax efficient to hold US/international equities in RRSP. My goal is to reach $1 MM ASAP. After that, I may do an analysis regarding tax implications of all my accounts.
 

·
Registered
Joined
·
21,717 Posts
Great results! I'm around the same age as you, with similar parameters, and we seem to be heading the same way. I think there at least 3 or 4 of us in this forum all around the same age and place in our careers & savings.

I'm still amazed by how low your expenses are, much lower than mine. Any tips on how to reduce housing costs? Did you do something special to get this low?

I have set up DRIP in all of my accounts....money makes money :semi-twins:
DRIP'ing is essential, but another way to think of dividends is as a cash delivery mechanism, in that they are transferring some of your equity to you as cash. That is, the dividends do not generate new money (like bond interest does). Reinvesting the dividend preserves the equity value, as opposed to letting it bleed out (taking all the dividends out = bleeding out cash from the equity value).

So I think it's a misconception that reinvesting dividends grows or compounds the dividends. What's happening is that some $ is taken out of equity, you receive it as cash, then put the cash back into equity. Nothing has really changed through this process. This is why it doesn't make any sense to seek a high dividend yielding stock and then just DRIP the dividend. There is no compounding or extra growth accomplished.

As PWL Capital states in this video, "As much as the dividend may seem like free money, the reality is that the payment of the dividend decreases the value of your stock. If a company pays $20 million to its shareholders as a dividend, the remaining value of the company has to decrease by $20 million." -- see https://www.youtube.com/watch?v=9j6DInAMMaM

Why am I saying all this... I think we're fed misconceptions about dividends and given false promises by web sites and media personalities. It's important to not get the wrong idea about what dividends do for you when living off capital. When the time comes that you stop reinvesting the dividends, and start taking out the cash, you will be tapping into your equity and capital. If you have 1M capital and are living off dividends, this is equivalent to selling some shares each year and depleting (to a mild degree) your capital. Of course, if equities keep performing well, the new gains can offset the depletion. But I think it's still very important to be aware that dividends deplete or tap into capital.

This is also why it's critical to reinvest all dividends unless you actually need that cash, because it is equivalent to selling or withdrawing equity. Others around here will disagree with my view on this, but you can refer to the PWL Capital video or this Moneysense series on Dividend Myths which explains it all quite well. As the article says: "a company that pays a dividend to shareholders is depleting its own capital".
 

·
Registered
Joined
·
3,066 Posts
That is, the dividends do not generate new money (like bond interest does).
.
.
There is no compounding or extra growth accomplished.
Right, that is the key difference. Though dividends give the appearance of "compounding", it's actually just "accelerating earnings growth" that's simulating "compound interest". If the company you invest in loses its edge and barely increases earnings over the years, then the dividend will eventually follow, and suddenly it won't seem like compounding at all.


Though the math on this is easy enough to comprehend, I still have a hell of a hard time getting dividends out of my mind. How many of us were going crazy for Enbridge's 6.5% yield last month? I know I was...
 
41 - 60 of 105 Posts
Top