Monday, December 19, 2016

Failures and Successes : My 2016 Financial Goals

"Everything you want is on the other side of fear." - Jack Canfield

Oh that quote... so true and yet so hard to put into action sometimes.

In 2016, I have set myself Financial Goals...

·     To respect, 75 % of the time, a monthly budget of less than 5 000 $. Last year we tried 5 000$ and almost succeeded. Let's try 5 000$ and hope for the best.

Failed. This goal is pretty hard. I did manage to succeed a few times and meet by monthly goal. But not nearly enough. Oh well, I guess life just came in the way. Will try harder next year.

·     To max out my TSFA and hit the 52 K$ mark. Right now, I have 43 243$ in it. I have room for 5 500$ this year. Let’s assume a yield of around 5-6 % in addition to 1 300$ in dividends. One of my stock is (STILL) slumping (ABX). Hopefully, my other stocks will compensate and pull my portfolio upwards. It should get me to 52 K$ by the end of the year.

Succeeded. I maxed out my TFSA and right now my balance indicates 54 K$. I also had to withdraw 2K$ during the year. I did a few transactions in this account. I got rid of ABX (Barrick Gold) and POT (Potash Corp.) and replace them with Power Financial (PWF) Vanguard VCN and VIU and some Couche-Tard (ATD.B). All in all it did some good to my TFSA.

·     To grow my net worth to 235 K$. I expect a more constant revenue this year. Right now, I have a Net Worth of 205K$ With a yield of 5-6%, that should take me to 217 K$ solely on compounding. With my dividends of about 4K$ and the few new capital money I should add to the mix I expect to close out the year with 235K$.

Failed. This a tricky goal. Technically I have succeeded but the real estate in my city has sort of been on the slow side a little bit. Instead of 315 000$, I decided to change the value of my home to 285 000$ which, in my opinion, is a better reflection of reality according to the recent sells close to my home. If it had not been for this, I would have reached my goal easily. But I prefer to be more conservative. I don’t intend to ever sell my home (maybe rent it) so I don’t really mind. My Net Worth is now 224K$.

·     To hit the 190 K $ mark in my portfolio. Right now I have roughly 162 K$ (you can check it out here). I still have some cash flow to invest. But I wish to invest only in quality stocks I already own (or new ETF’s). I don’t want to add more stocks to my portfolio. I feel I already have enough with 22. The yield of my portfolio will come from compounding (5-6%). I will also keep investing on a bi-monthly basis in a US Index Fund. I will sell some of this fund throughout the year to deploy the money directly in stocks. Money coming from dividends will contribute to my portfolio as I both expect raises and buying more dividend growing shares of companies I own. I should be able to end 2016 with 190 K$.

Succeeded. My portfolio is now closing in on the 200K$ mark. As of today, it totals 196 200$. I know my portfolio page indicates 173 K$ or so but it’s because I don’t mention the money sleeping in my saving accounts (making some interests). So I’m 5K$ over my goal and I’d say it bodes well for 2017 and the 200K$ mark, don’t you?

·     To stay out of debt. I don’t have any bad debt as we speak (apart from the mort-gage, which is a good debt). That's the way we like it. Let’s keep it that way.

Failed. I owe 2,5K$ to my bank. But it’s no big deal as I could easily pay it. I will, it just bugs me to do it.

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

Failed. Not there yet again.

So, what do you think of my failures and successes this year? What should I do differently? 

3 comments:

  1. Some successes and some failures...but you are aiming high and its ok to miss some targets. Looks like another great year in the books, MD. Congrats on the successful completion on some of the goals and best wishes for your next set in 2017.

    cheers
    R2R

    ReplyDelete
  2. Thanks R2R for the kind words. It's not a bad year -- we always wish we could accomplish everything but what can you do : sometimes life gets in the way. ;-) have a great 2017!

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