Wednesday, January 30, 2013

Net Worth Updated

Hey Financial Freaks!

I have updated my net worth today. I know my arithmetic has been quite up and down lately. It's because of recent changes in the amount I have received. Anyway, the page Net Worth should now be pretty acurate.

Here's a few changes I have made:

I have added the 6 K$ I have received last week.

I have put 4 K$ (instead of 2.5) for my motorcycle and car. See, I have been working on my bike for quite some time now and I reckon the value has gone up. As for the car, it's mostly my girlfriend but she say's its 33 % mine (hey! I paid some of the bills!). So this 4 K $ is very conservative.

The value of my pension plan is bound to fluctuate because of the market. But those are the latest numbers I was told.

As for the real estate part, the net worth number represent 50 % of my profit if we would sell today. Again, this is a conservative estimate.

So, all in all, I am worth 330 K $. Not bad for a thirty-something old guy. It could be better and it could be much worse.

What do you think? How do I rank up?

Tuesday, January 29, 2013

Monthly Budget Update (January)

Hello Financial Freaks,

January is slowly coming to an end. I have just updated our monthly budget. It looks as though we are heading in the same direction as last month. 

I thought we could find some room for improvements. But can we?

I want to hear from you. Do you think we do OK? And how can we do better ?

Monday, January 28, 2013

Trains and targets

Today I received a 14 $ dividend from Canadian Pacific, my only railway company.

Since Bill Ackman and Hunter Harrison took control of CP this position has more than doubled its price. I bought the shares at 46$, 52 $ and 65 $ for an average price of 58 $.


Unfortunately for me, I sold more than half of my stocks at around 75 $. I was estimating the stock overpriced. Now it's pointing at 113 $ and it's a bit upsetting (but still very much overpriced). 

CP has been doing better -- but not that better. See, the price of the stock at the moment is actually trading according to multiple cash flow estimates for 2016! It's basically trading at the same ratio of it's CN competitor -- but, unlike CN, on the basis of profits to come.


The moral of the story : I keep my modest position in CP for now. But I will watch it closely, and keep a closer watch on its rival, Canadian National (CN), who's been doing everything better than CP for years now.


I like trains. I think its a noble way of transportation for goods. Furthermore, I think it's the way of the future. So I intend to increase my position when the market will come down a little bit.



I have other stocks in my target. I want to have more defensive positions such as Alimentation Couche-Tard (ATD.B)which operates a network of convenience stores, many of which include motor fuel dispensing, mostly located in Canada, but also in 42 American states. Their dividend policy is weak, but it's a fast growing company. 

I also want to get my hand on a Telecommunication company. I used to have Rogers but I sold it (stupid move; I got scared by Mr. Market -- a bad move I won't make again). I think BCE is doing quite well; they have an aggressive dividend policy which is attractive. But it's quite expensive at the moment.

I am not making a move just yet. But when I do, it will be a big chunk. I just don't know of what yet!

Have you targeted any value stocks ?



Monday, January 21, 2013

Today is X-MAS (again and again!)

Dear Financial Freaks,

The postman just came in today with a new X-MAS gift. See, in the beginning I was estimating a cash out networth of roughly 48 K$. But then the check arrived and it was 42 K$... What I didn't  know was that I would get an extra check worth of 6 K$ destined to my RRSP. Well, since the 6 K$ has already been put into my RRSP, I guess the 6 K$ will simply be deposit into my saving account! Katching.

I am almost glad it came like that. It's two X-Mas gift instead of two!

***

Hey! Great news this morning as I saw that my cash out was in. Bells were ringing and so on. It was X-MAS all over again, like the good tune by Tom Petty. 

People viewing my Portfolio might have noticed a big change in the total lane... And no, it's not Barrick Gold picking up the slack!

Like I said, I am going through The Intelligent Investor again. And, coincidentally, this very quote by Benjamin Franklin was a few pages away the day before :

"Human Felicity is produc'd not so much by great Pieces of good Fortune that seldom happen, as by little Advantages that occur every day. " (page 124.)

I have to agree Benjamin, but today is one of those good fortune day that seldom happen. But they sure feel good nonetheless.

No kidding, especially when you are 43 K$ richer! Katching.

Needless to say it was a busy Financial day. But I knew where to direct the cash, let me tell you that!
(I am still not sure as to what to actually do with it though / see previous post).

First off : I put 6 K $ into my RRSP right away. 4 K $ will be used to buy stocks eventually and 2 K$ will be buying Government Bonds.

Secondly, I put 3 K$ in my Emergency fund, for a total of 5 K$. I figured I didn't need a bigger fund since cash is sitting elsewhere -- not invest in anything.

The rest goes like this :

  • I've put 4 K $ in my TFSA. Since I also make bi-monthly payments, I should be able to full my contribution for this year, which is 5 500$. I have to find stocks to buy.
  • I've put 4 K$ into my Brokerage non registered account. I have to find stocks to buy.
  • And I've put 19 K $ in a boring saving account as I might need this money this year -- either for a new project or simply to pay the bills.
That's pretty much it. The money has been redirected. But I still need to figure out what to do with some of it. I have my ideas. But they need time to be implemented. Just like everything else, time is honey -- and money.

Let me know what you think. I greatly appreciate hearing from you. It motivates me.

You will also see that I have added a more complete overview of my Net Worth

Take care Financial Freaks.




Thursday, January 17, 2013

Quick Update

Hello all,

Been away the last couple of days. I still kept a close watch on Mr. Market. Actually I have been re-reading The Intelligent Investor. What a great book. I also love the new comments by Jason Zweig.

I also made a reservation at the local library for the Millionnaire Teacher, as suggested by fellow blogger Trader Rob.

Today I sold a tiny bit of JNJ, Johnson and Johnson that is. I am a great fan of the company. It's one of my main holdings. But I felt it was a little buit overpriced at the moment. I might buy some more in the future. Will see.

I am actually setting my sights on other stocks: I want to find some in the Telecomm, Reit and Consumer Staples sectors. But they are all overpriced as well.

I need to be patient. I find it tough, but it's the only way.

Anyhow, here's a quick Financial Update Status for January

Assets

  • Condo : 295 000 $
  • Pension Plan : 176 806,12 $ (net worth)
  • TFSA : 22 151 $
  • RRSP* : 28 632 $ 
  • Cash : 6 200 $
  • Non registered trading account : 25 850 $
  • Cash-out from work* : 71 000$ (net worth roughly 45 000 $)
  • Motorcycle : 2 500$
  • Friend owning me money (for ages) : 2 000$
Liabilities 
  • Mortgage : 226 215 $
  • VISA : 0 $
  • Margin : 3 000 $
  • Home Buyer's Plan : 12 898 $ (well that's money I basically owe to myself).
*Fiscal impact (We have to substract 30 % for my RRSP and 35 % for my cash-out) + my girlfriend is also intitled to 50% of the condo's gain (roughly 34 392 $). 

Net worth : 318 838 $  (+ 0,58 % since December)


Friday, January 11, 2013

Invest in what ?

I have almost 10 K$ sitting in my brokerage account. And I will be receiving almost 50 K$ soon. I'm in front of a nice problem : what do I do with that money? How do I invest it? Or do I ?

Dear fellow financial bloggers, I want to hear you out.

  • I can leave the cash there, doing basically nothing -  maybe 1.5 % in an ING Direct account.
  • I can invest passively in those boring ETF's.
  • I can add to some of my positions currently slumping (POW, ABX or even SU).
  • I can invest in a farm land in Saskatchewan!
  • I can buy a new house and rent my condo
  • I can buy a land, a wood forrest, etc. 
  • Or I can keep that money in an emergency fund. And wait till an opportunity comes up.

Remember, the strategy has to fit my financial philosophy. I want to keep my positions under 12. I want to maintain my «bond/fix income» position to at least 20 % of my portfolio value. Basically, I am not going to get carried away with small-caps companies...

I would really like to hear from you! Come on! Yes you. Write to me!

Trivia : guess what pages of my blog have been the most popular. You got it : Portfolio and Dividends and Royalties. You sneaky greedy little monks! ;-) I guess we all like to compare. I am not any different.

***

Tuesday, January 8, 2013

My fellow visitors (congrats)

Hello visitors, 

I have put some good work lately on this blog. Worked out a nice and pretty up to date bar header. You have now access, in real time (almost), to my complete portfolio and dividends-royalties schedule. 

 I have my fair share of visitors. But I wouldn't call it a wave! Then again, I don't really do any publicity. None of my friends nor my family know about this blog. 


I have left some comments here and there on other blogs. But that's about it. I don't mind the low-key aspect of this blog, but I miss the exchanges with other bloggers. 

Anyway, time will tell how this project unfolds. Right now I use this blog as a motivator and a tool to keep tracks of my financial activities. And it's great to see other bloggers doing so well. It's a fair and exciting way to boost each other right up to retirement!

Some other blogs have already caught my attention, for different reasons, some good, some bad. I spoke about that topic in a post call The good the bad and the ugly.

But right now I would like to concentrate on the good ones. So props up, in my view, to some of the best achievements from some of the bloggers I follow :


  • The mortgage killer. The Blogscar goes to Nurse Frugal. She and her husband are on a mission and want to get rid of their newly acquired mortage. 61 % is already paid off. Wow. This is quite a feat. Congratulations guys! BTW, I am still a little traumatized by that story of a smelly garlic-skunk omelet fart... (Good luck with all that!).
  • The most original investor. The blogscar goes to Freedomthirtyfive who baught  a piece of land in Saskatchewan and will be renting it. That takes some ball for a guys in his twenties living in British Columbia.  Seriously dude, it's a nice achievement. Very impressive.
  • The frugalator. The blogscar goes to Dividend Mantra who managed to come with a monthly budget (in December, mind you!) of under 1 200 $! What else can we say? We would love to visit your place! You live so cheaply why even bother wanting to retire! Congrats amigo, it's very well done. We are all jealous.
There are other blogs I would like to salute, but I miss the time this morning. I will eventually post another Blogscar achievements piece. Thanks for coming by. 

How about you tell me if you like my blog? 



Saturday, January 5, 2013

Financial Goals for 2013

I don't expect much income this year, apart from my cash-out which should be in sooner than later. But I still have a few financial goals in mind.

To respect a monthly budget. I have never done that, a budget that is. I was always telling myself : « why bother, you live like you live, so make the most to pay the bills at the end of the year! » But making this first budget was a revelation: I actually found out where the money went. Needless to say it forces you to make «wiser» choice. Restaurants have been cut off drastically.

To max out my TSFA and hit the 30 K$ mark. Right now, I have 22 100 $ in it. I might be missing around 200 $ (I will know for sure this year). 5 500$ is available this year. So I would like to end the year with at least 28 000 $. I expect a yield of around 5 %, so I should be pretty close to 30 K $. Two of my main stock are slumping at the moment (POW and ABX), so they should pick up anytime soon (hopefully). Let's set the goal for 30 K$.

To grow my net worth to 350 K $. Like I said, I don't expect much revenue this year, so basically I need  to avoid debts at all cost. Also we want to avoid spending my cash-out (roughly 45 K $). So my net worth should be growing solely with compounding. If I am conservative, and set a 5 % yield goal, I should have close to 350 K $ by the end of the year.

To hit the 100 K $ mark in my portfolio. Right now I have 80 K $ (you can check it out here). I should be able to invest a little more in my actual stocks, or buy some more. We will see. I will be extremely patient in that regard. So if I hit the 100 K$, it might solely because of the cash sitting in the brokerage account. We shall see.

To stay out of debt. Right now we have almost 3 K $ on the margin. The car is paid. We shouldn't have any debt by the end of the year (apart the mortgage). That's the way we like it.

To find another form of investment. A land, a cottage, a house, a wood forrest. Anything that diversify our assets.

I haven't said anything about my RRSP. It's because I plan on using it much more in 2014. Right now, I have max out my contributions in it. The ceiling wasn't quite high, it's because I was already making contributions to a pension plan. The Revenue Agency has it's policy. But since I don't have a job with a pension anymore, I need to turn myself towards the RRSP even more. I will talk about that this year. But for now, these goals up there should do it.

Have a good financial year!

Friday, January 4, 2013

New Google Docs Portfolio

It has not been easy, but I found a way so that my Portfolio is updated automatically via Google docs. Actually it's not that complicated.

 Other bloggers who want to do it can write to me.

 So there you have it, in my bar header, my portfolio always updated. No hassle.

 No big change in it. Still holding off some cash in my account. I am waiting for some stocks to drop before buying anything cheap and worth it. Unless you have any great ideas?

 Stocks I would buy in a second if they'd actually drop:

  •  Kraft (KRFT) -- below 41 $ 
  •  Cominar REIT (CUF.UN) -- below 20 $ 
  •  Railway companies such as CN or CP -- below 75 $ 
  •  Alimentation Couche-Tard -- below 40 $ 
  •  General Dynamics -- below 60 $
  • Atco (ACOX) -- below 60$
  • Enbridge -- below 35 $

And so on.

It's the wisdom of exercising patience in investing.