This is my eighth net-worth updates report for the year 2017. For those new to my finance journey, net worth update is a simple report I post every month which tracks the progress of my journey to reach my financial goals.
My ultimate financial goal is to become a self-made millionaire by December 2024 (10 year plan) by saving and investing in stable dividend paying blue-chip companies.
I am posting all my financial information in this website because I love to inspire and motivate people to start their own journey to reach their financial freedom.
You could learn from my successes and failures (experience) and improve your financial IQ.
Along the way, I make financial mistakes and will share my experience here. So, you could learn something, avoid those mistakes and save money.
Also, I like to publickly track my progress and get valuable advice from like-minded people.
In August 2017, my net worth increased slightly higher after two consecutive months of modest declines.
Therefore, my net worth increased by $1500 or 0.86% in August, thanks to modest gain in my Canadian investments.
Stock market analysts are expecting that Canadian economy will improve and perform well in the coming months.
Thus, my Canadian holdings perform well in the coming months, especially my financial holdings. At the same, my REITs and utilities stocks may take hit due to the rising interest rate. But, I am not making any major changes in my Canadian stocks.
In September, I have been making some changes in my U.S holdings. I will discuss the changes in the my next portfolio updates.
Now let’s talk about my net worth and finacial details in numbers
Last month, my net worth decreased by $1500 or 0.86% from my last update.
Net worth update as of August 31, 2017 ()
Assets: $508 900 ()
- Cash: $800 ()
- Home: $275 000 (no change) – Yearly adjustment with average inflation rate of 2%
- Canadian Stocks: :$180 100 ( )
- U.S. Stocks: $39 300 ()
- Employer’s Pension Plan: $13 700()
Liabilities: $332 400 ()
- Mortgage : $179 600 ()
- Student loan: $22 800 ()
- Margin loan: $68 200 ()
- Credit card 1:0 (no change) (paid-off)
- Credit card 2:$18 200 () (low interest credit card – 1.99% special rate for 12 months – will be expired in March 2018)
- Credit card 2:$11 400 () (low interest credit card – 0.99% special rate for 12 months – will be expired in March 2018)
- Line of Credit 3: $4700 (no change) (low interest credit card – 0% special rate for 12 months – will be expired in June 2018)
- Credit card 5: $3000 (no change) – (low interest credit card – 1.99% special rate for 10 months – will be expired in November 2017)
- Credit card 6:$200 ( ) – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 :$12 600 (no change) – (low interest credit card – 2.99% special rate for 12 months – will be expired in February 2018)
- HELOC: $11 700 () – (low interest of 3.45% – primte + 0.5%)
Net worth :$176 500 () as of August 31, 2017
My net worth up by since my last update.
Note
- all amounts are rounded to the nearest $100;
- all numbers are in CAD; and
- Conversion rate 1.00 USD = 1.2516 CAD
I have a huge credit card debts because I take advantage of low balance transfer promotion rate and invest in high quality dividend stocks. Learn, earn, save,invest and leverage your skills are the keys to become wealth.
Thank you so much for being in my finance journey and for your support.
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I think the risk of borrowing heavily to invest is very high.
If you borrow and market downturns ….what goes up must come down ..kind of thing you lose twice stock loss plus still owe money on the shares.
I have many of the stock’s you own in your Canadian portfolio. I reinvest the dividends every month. But I do not borrow to do it.
We like to believe that investing is not gambling but it is.
Fast horses go lame and cars change quickly.
I must say I admire your intestinal fortitude
But remember for ten years now its been harder to lose money than make it on the markets.that may change quickly rather than gradually.
Hello Ken,
Thank you for your comments and advise.
Initially, I didn’t have enough money to build a decent portfolio. Thus, I started to borrow money at ultra low rate and built a sizable portfolio, and it became my habit. But, I understand the risk involve in leverage investing.
My portfolio is heavily weighted with Canadian dividend paying stocks, and it has gone already gone through couple of corrections and bear markets in last few years.
Now I have big portfolio, and it is generating decent cash-flow every month in the form of dividend.. So, I decided let it grow itself and started to reduce (not completely pay-off – just reduce) my debts.
Thank you once again for your valuable feedback.
All the best on your journey — thanks for the update and keep up the good work!
Thank you FerdiS for stopping by
All the best to you as well 🙂
Cheers,
Hello,
I have been following along for quite some time and started to emulate your mindset (minus the credit card debt, a risk my liver couldn’t withstand). I recently thought about attempting to pay my mortgage off as quickly as possible leaving all solo investing aside. I considered splitting the extra cash between the mortgage and investments but I am not sure that would be a better? The mortgage (all in strategy) would take 6-8 years. I was wondering what your thoughts were. Is it best to spread the extra cash ? or knock out a big chunk of debt and interest?
Cheers,
Andrew
Hello Andrew,
I would say I am a big risk taker, so I decided to go with building assets first, then pay-off debt later. My method works with bull market and becomes worst in bear market.
Honestly, I can’t advise you (or any other readers) without knowing your (their) financial situations, risk tolerances and other circumstance. Also, I am not a professional financial adviser. I would strongly recommend you to discuss with a qualified financial adviser before make any financial decision.
Getting a financial advise from an unknown person like me is really a bad idea :).
Best Regards,
Hi Andrew
I am not sure if you heard about but Smith Maneuvre might help with you plan.
There are many forums about this topic and here are the main steps:
1. Get a re-advanceable HELOC on your house (You have to have at least 20% paid from the existing value of the house… usualy you can get it for free)
2. Borrow money from HELOC and invest in stock market but in a non-registered account (TSFA or RRSP do not qualify)
3. The interest on HELOC is tax deductible and the dividends are taxed favorable
4. Use the tax return and dividends top pay faster your mortgage and automatically increase the HELOC value.
There are a few tips to take in consideration regarding the stocks you buy (stick to Canadian dividend stocks but not limited), use the HELOC ONLY for borrowing for investments, keep clean record of all transactions.
Good luck!
PS. FJ, keep up with the good progress…
Thank you Cris for your valuable information.
Andrew – HELOC is also a great way to build your portfolio. I use this strategy as well (for tax purpose); however, you must understand that leverage investing is very risky, thus I would urge you to educate yourself first and understand the risks and rewards of leverage investing. Also, discuss with qualified financial adviser before make any financial decisions.
Best Regards,