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

Monday, 13 October 2014

$192,000 ETF Report Update

As some of you know I have constructed a $192,000 ETF portfolio for my mother in law Grandma Olga. Original Link HERE

Here is a dividend report since original inception of June 25

A recap of the particulars

The Allocation: 

Fixed Income: 46%

  • Bonds 34% : Investment grade corporate 1-5 year laddered Fund
  • Preferred Shares 12% : Canada and American high quality holdings Fund

Equity Income 54%
  • Reits 12% : Canadian Income Real Estate Investment Trusts Fund
  • Canada 12.5% : High dividend paying stock fund
  • American 12.5% : High dividend paying stock fund
  • Covered Calls 7.5% : Covered calls of select North American stock fund
  • World 12% : High yielding mainly Europe/Asia Fund
    Total portfolio original value $192,000

Now the list of the individual funds!


  • CBO - iShares 1-5 year laddered corporate bond.            .28% Mer     4.18% Yield
  • ZCS - BMO Short Corp Bond Index                                .34% Mer     3.16% Yield

Preferred Shares
  • XPF - iShares Preferred Stock North America                  .47% Mer      5.21% Yield
  • XRE - iShares S/P TSX Cap Reit                                       .60% Mer      4.96% Yield

Canada Equity
  • XEI - iShares Equity Income                                               .61% Mer      4.21% Yield
  • ZWU - BMO Covered Call Utilities                                   .71% Mer      5.60% Yield
  • ZWB - BMO Covered Call Financials                                .74% Mer      4.80% Yield

America and World Equites
  • ZWH - BMO US High Div Covered Calls                           .65% Mer     6.07% Yield
  • XHD - iShares US High Div Index                                      .33% Mer     2.62% Yield
  • CYH - iShares Global Monthly Dividend Index                  .34% Mer     3.59% Yield
  • VEF - Vanguard Developed excluding NA                          .34% Mer     3.50% Yield

This selected portfolio is currently yielding 4.11% 
or about $7,891 a year or $657 a month average

Now an update of the payouts and thoughts

July               $451.96
August          $610.00
September     $610.00
October         $217.12

They are a little bit lower than I had anticipated. All but one of the funds are monthly payers so $610 will be the lowest total going forward I would hope which depends on payouts remaining the same.

Revised forward dividends are $7500 for the year or $625 a month (3.9% yield)

And now even more bad news

The portfolio holdings of $192,000 is down 2.16% to $187,849 due to markets taking a severe dip.

In Conclusion

Not the best update with lower than anticipated payout and the portfolio taking a hit but it could be worse. No panic here as its is a long term hold. Nobody can time the markets efficiently and history shows always better to be in than out. We will stand not making any moves until possibly next year where we will analyze a couple things. We will more than likely switch from the reit fund etf into individual reit holdings if the Mers do not go down on that fund. 4% yield is what I am after and will adjust accordingly to make it happen.

Other News

Markets taking a good sized dip wiping out my gains. Net worth report coming in a few days and its looking pretty red!!!! Ouchy!!!