|RE 1- Home||3,030,000||3,137,000||-107,000||-3.4%||1|
|RE 3- Office||448,000||423,000||25,000||5.9%||2|
|Asset Allocation %||Networth %||AUM %||Notes|
|Fixed income/ Cash||47.8||84.3||4|
This would be the reason I hope to never expose who I am. My husband would have a veritable meltdown. I plan to show our networth reports. You can follow along as I reconfigure my investments. It is an ongoing process. Especially since we kind of forgot to invest in the stock market the past 10 years. Oops. We had been holding cash with the plan to purchase small apartment buildings. I literally did not pay attention to equities for many years. However we changed our game plan last fall and now have a large amount of capital to deploy into a market with a Shiller CAPE10 over 30! [Insert all curse words here]
- RE1 is my home while RE2 is the home we raised our kids in. These were simply bought out of need. We needed homes for my parents and ourselves. No skill was required, it was simply luck. We could not foresee the massive run up in prices. This is the stock market version of buy and hold. Minus the liquidity and ongoing costs of course. Now as I write this maybe there is zero similarities to an equities portfolio after all. Very glad that the assessments are not increasing since it a bit of a false measure of networth.
- RE 3- This is the office my husband practices out of. He was paying about the same amount for rent in the past. We just transferred the rent payments to ourselves. I am glad we ended up buying a small commercial RE since this baby will have triple net when we rent it out later. Woohoo.
- Equities– I plan to deploy regularly and have been doing this since the beginning of the year. I bought into VGRO on Feb 1st and watched it tumble 10% the following week. Yay. Might as well get used to it. I am planning to put 5K into the market each month which is about 50% of what I originally planned. I take the average Shiller CAPE10/ current Shiller CAPE10 and this gives me an idea of the amount of capital I am prepared to commit. There are various metrics I could use but a valuation metric seemed good enough for me. I do not pretend to know which is best. I just pick a metric and will try to be consistent in using it.
- Fixed Income– This category I am making as a catch all for the cash instruments. I only hold short and intermediate term money. Nothing longer than 5 years to ensure that I have the CDIC insurance. The cash can range from high interest savings accounts, 90 day terms, or 1-5 year GICs. Absolutely nothing exciting here.
- Only the office is included as RE under investable assets. My husband would like to keep RE 2 out of investable assets as well. Mainly for sentimental reasons, as this was the home we raised our family in. I don’t really mind since this gives me more firepower to buy another multiplex later.
Plan To Do
- Deploy assets into the market. I will DCA since the market is so expensive. You can look at any metric and they all point to an expensive market. I set the trades up at the beginning of each month. It takes barely any time at all. I deploy 5K into the market at the beginning of each month. I am currently buying VGRO in the TFSA.
- Keep searching for another multiplex to purchase. This could take years but we enjoy the process.
- Simplify the finances:
- Close 1 business bank account rarely used.
- Close 1 personal bank account rarely used.
That has been the best part of this blogging. I have become even more interested in simplifying all the accounts and keeping it streamlined. When you plan to be a DIY investor, that part is critical.
The local real estate market is still high but I am beginning to see cracks in the sales prices relative to assessments. However the prices are still very sticky in the price range that I am shopping at.
The stock market is also very expensive. So for now, I will carry on with my simple plan of DCA the equities, ladder my fixed income and keep searching for another multiplex.
The recent tax changes have also forced my husband to seriously think about slowing down. Time is precious and we will be able to enjoy our more adventurous outdoors activities for another decade or so if we are lucky. Regardless, these tax changes have really woken him up and I think that is a good thing.