Assets 2018Q1 2017Q4 Change % Change Notes
RE 1- Home 3,030,000 3,137,000 -107,000 -3.4% 1
RE 2 852,450 853,550 -1,100 -0.1% 1
RE 3- Office 448,000 423,000 25,000 5.9% 2
Corporate Acct 3,653,578 3,501,899 151,679, 4.3%
RRSP 516,799 515,536 1263 0.2%
TFSA 120,101 109,101 11000 10.1%
Personal Acct 233,156 232,069 1087 0.5%
Commodities 45,800 44,170 1630 3.7%
Networth 8,899,884 8,816,325 83,559 0.9%
Asset Allocation % Networth % AUM % Notes
Equities 3.4 6.0 3
Fixed income/ Cash 47.8 84.3 4
RE 48.3 8.8 5
Commodities 0.5 0.9
100.0 100.0

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]

Notes

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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

  1. 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.
  2. Keep searching for another multiplex to purchase. This could take years but we enjoy the process.
  3. Simplify the finances:
    1. Close 1 business bank account rarely used.
    2. 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.

11 thoughts on “2018Q1 Update

  1. Congrats to you and your husband! You guys are doing fantastic! It’s interesting to see a different path to FI via real estate, vs. the standard route of stock/bonds.

    I think you have a well-thought out plan going forward.

    With your low annual household expenses relative to your net worth, are you considering loosening the purse strings a bit for yourselves or are you planning to help your kids out? Good options to have!

    1. Hello DN,

      You know I’d say no. I did the 10K blingy earrings and the luxury car. But it was always “meh, is this all it is?” I find I still love hanging out with family and friends and going for a run. I did all that when I was a teenager and I was broke.

      Btw DN my husband is finally thinking about rearranging his work. Not because of our networth but those new tax changes are really bugging him!

    1. Hello DN,

      RE 1 & 2 are houses with land. RE 3 is a new commercial condo. Apparently commercial condos went up in value last year. I just use the assessments given by the city every year.

    1. Hello MD,

      I do not have any liabilities. I paid cash for my personal residence, cars, actually everything. Unexciting I know.

    1. Hey DocG,

      I just commented on YOUR blog! That’s too funny.

      Btw. Don’t forget our Canadian dollars are significantly discounted to yours. Plus a lot of my stuff is in our corps so not fully tax discounted yet.

  2. Wow. Very impressive portfolio indeed. Plus in Canada healthcare is provided so that really pushes the portfolio over the top when compared to someone in the US like me. Healthcare costs are the main unknown for me and until Medicare kicks in at 65 (I’m 47) when I do decide to retire early (shooting for maybe 53-55 range) that will be the elephant in the room in terms of potential budget busters.

    Do you have a certain net worth where you declare you have won the game and eliminate your employment? To be honest I personally would retire way before my portfolio could reach would you currently have.

    1. Hello XRV,

      We never had any goals for this. I have been working very part time since 2004. I had thought I reached FI when I had around 1.5 M. It has since grown to about 5M just from that amount alone. There were no blogs so I did not even know if it was enough or not. But I maintained my license, ready to work anytime if needed. As it turned out, it was enough for us and all my husband’s income has pretty much been banked for the past decade. We did not even really invest, so this shows what simple earning and saving will do for physicians.

      If I was American and had to worry about the health care, I’d make sure one of us kept part time work for the benefits. I don’t believe there is any prize for tapping out a Medicine unless fully prepared.

      1. That is awesome. Yes savings rate and time are the greatest things an investor has at his or her disposal. Well it definitely gives us something for all of us to aspire to.

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