No plan survives contact with the enemy... - Page 2
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Thread: No plan survives contact with the enemy...

  1. #11
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    just wondering what you do for living...you are making a lot of money monthly....good job


  2. #12
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    Great job.

    It's refreshing and encouraging to read the money diaries of young people with goals and good financial smarts.

  3. #13
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    Thanks for the encouragement Janus10, I'm hoping to hit the 'magic' $160,000 sooner, rather than later so I can allocate funds to some upcoming liabilities (2015 corporate and personal taxes for one, I'm going to have to start saving liquid capital for these inchoate liabilities).

    scorpion_ca: I practice law, specifically corporate transactions/business structuring and corporate/commercial dispute resolution.

    Bull: thanks for the kind words, I hope this diary gives the motivation to others that those that 'came before' gave to me.

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  5. #14
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    Quote Originally Posted by Sm5 View Post
    Bull: thanks for the kind words, I hope this diary gives the motivation to others that those that 'came before' gave to me.
    You're welcome.

    Yes, I gathered that from your preamble. A worthy cause. From what I observe there are many that need financial leadership.

  6. #15
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    May update - rampant consumerism abound

    Posting a few days early because I don't expect to get a chance on Monday. As expected, May was a bit rough (June will be as well) with some significant one-off expenses. The good news is that overall it was still a positive month, just not positive enough! Unfortunately, with the economy in Alberta how it is, I'm down around 20% - 25% for net revenue which is meaning some timing of receivables is necessary.

    A few financial related items occurred in May, I funded the corporate brokerage account and got that rolling and planned out the rest of the year with my accountant (decided to start drawing a salary, which means source deductions are starting which will slow down net worth growth for the rest of the year since CRA will be taking around $35,000 off the top over the next 7 months :-().

    Anyhow, since this is a day early, I am anticipating for a rent payment that comes out tomorrow; meaning that this months update is 'as of' June 1, 2015 and not the date of posting.

    Assets
    TFSA 1: $41,600 ($100 monthly contribution)
    TFSA 2: $9,000 (no contributions)
    RRSP: $53,700 ($10,000 contribution, only around $4,000 more room here -- I expect I'll top this off in July)
    Non-Registered (CAD): $ 38,600 (no contributions)
    Non-Registered (USD): $350 (no contributions)
    Savings Account 1: $3,550 ($5,200 less a $1,650 rent payment coming out tomorrow)
    Savings Account 2: $300

    Corporate Current Account: $7,800
    Corporate Investment Account: $8,200.

    Liabilities
    Margin Loan: $10,070 - decided not to pay anything against this and will let it ride for a bit.
    MasterCard: $4,200 (revolving balance, paid monthly, 2 major expenses this last month and another couple coming in June before this goes back to normal :-( this one hurts a bit)
    Visa: $0
    Line of Credit: $0
    Corporate MasterCard: $1,200.

    Estimated net worth (USD converted on May 29, 2015 close of business and accounting for rent payment) is $149,000 (+$3,600).

    On the rate of return front, of the accounts I track (the major ones, all Excel XIRR method), my non-registered CAD is the dog (heavily Canadian financials with a -1.34% YTD return; TFSA 1 (balanced in its own right) is at +8.16%; TFSA 2 (global small cap) is +4.88%; and RRSP (foreign / USA) is +14.93% which gives an overall investment return of +7.54% YTD (+19.64% annualized).Can't complain about that! I have not started tracking the corporate investment account yet.

    Until next time...

  7. #16
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    June 2015 - Rampant Consumerism (take 2) and a turn of the market

    Posting a day early (again) because I don't expect to get a chance tomorrow. As anticipated, June was rough. This is a mix of the rampant consumerism (which was expected), and a turn of the market.

    A few financial related items occurred in June, I threw some funds at margin and made a purchase of some additional bank shares in the financial turmoil (thank you Greece). I need to stop buying Canadian financials as it is affecting the portfolio balance placing me 5% over my Canadian equity allocation. It is just hard to say no to blue chips that are paying dividends higher than the pre-tax cost of money! Unfortunately, this means until the end of July I am basically illiquid -- going to be tight on cash flow from some expected and unexpected expenses. The good news is next month looks like I'll be receiving a reasonable income, so merely a timing of receivables issue. I have also started a salary (with everything that entails tax and reporting wise), so asset growth will slow now with the additional tax burdens this entails.

    With that said, I'm a bit concerned I'm taking too much risk so likely will back down a bit on the margin over the next few months.

    As with last month, since this is a day early, I am anticipating for a rent payment that comes out tomorrow; meaning that this months update is 'as of' July 1, 2015 and not the date of posting.

    Assets
    TFSA 1: $40,800 ($100 monthly contribution)
    TFSA 2: $8,700 (no contributions)
    RRSP: $51,800 (no contributions)
    Non-Registered (CAD): $ 41,100 (around $2,800 contributed)
    Non-Registered (USD): $340 (no contributions)
    Savings Account 1: $1,900 ($3,550 less a $1,650 rent payment coming out tomorrow)
    Savings Account 2: $30

    Corporate Current Account: $4,500
    Corporate Investment Account: $8,100 (no contributions).

    Liabilities
    Margin Loan: $11,100 - paid a bit towards this, also drew on it a bit.
    MasterCard: $1,100 (revolving balance, paid monthly)
    Visa: $0
    Line of Credit: $0
    Corporate MasterCard: $3,500 (the rampant consumerism expected last month has hit! This is one off).

    Estimated net worth (USD converted on June 30, 2015 close of business and accounting for rent payment) is $143,000 (-$6,000). Not a good month overall, but still not that bad considering and, realistically, a negative month was bound to happen at some point!

    On the rate of return front: my non-registered CAD is still the dog and getting doggier (heavily Canadian financials with a -5.78% YTD return; TFSA 1 (balanced in its own right) is at +5.80%; TFSA 2 (global small cap) is +0.00%; and RRSP (foreign / USA) is +8.53% which gives an overall investment return of +3.32% YTD (+6.81% annualized) which shows how much of a difference a month makes.

    Plan for next month is to continue with filling the RRSP, put some cash aside for expected tax liabilities for year end, and top up general operating accounts again from the rampant consumerism (personal and corporate). I'll let everyone know in a month how that went!

  8. #17
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    July update - a good month overall

    July 2015 has come and gone, in some ways good, others bad. Had to dip into line of credit for a few weeks to maintain liquidity - which is never good. The good news is that it was only for a week and a half and has been cleared off. Equities are all over the place but rebounded a bit near month end, which helps. I sold out of BB as some of the news of the new market direction seemed to change my view of the company's future (thankfully, sold out before it dropped too much further at nearly identical value to when I purchased). On holding it, I practically broke even, however I am quite ahead from the covered call writing I did while I did hold it.

    Also, I was able to hit all three monthly benchmarks. RRSP is now full for the year, a little cash is aside now for CRA, and there is some residual liquidity left. I'll have to run the numbers more closely to see if there is any excess after reserves that can be invested too. With that said, the plan is to invest the amount for tax liabilities in a HISA, GIC or like product until needed to get a little, minuscule, return. This leaves a heavier cash allocation than i usually maintain but is the 'safe bet', so to speak.

    With all the activities in July, I am happy to say asset allocation is much better (or will be on Tuesday when the last of the RRSP contribution is allocated as I only rebalance through purchases). My target allocations are:
    25% Canadian Equities currently at 27.8%;
    35% US Equities, currently at 34.9%;
    35% overseas Equities, currently at 35.0%;
    3% fixed income, currently at 2.3%; and
    2% cash and equivalents, currently at 0% as I'm in margin.

    This is not counting the funds allocated for known upcoming liabilities.

    So time for the big numbers, as of August 1, 2015:

    Assets
    TFSA 1: $42,300 ($100 monthly contribution)
    TFSA 2: $9,300 (no contributions)
    RRSP: $59,200 (around $3,800 contributed, now full for the year)
    Non-Registered (CAD): $ 39,500 (no contributions)
    Non-Registered (USD): U$340 (no contributions)
    Savings Account 1: $4,500
    Savings Account 2: $250

    Corporate Current Account: $11,000
    Corporate Investment Account: $23,600 ($15,000 contribution, the cash being pooled for upcoming taxes so not truly an investment, but stored here).

    Liabilities
    Margin Loan: $9,600 - no payments.
    MasterCard: $1,100 (revolving balance, paid monthly)
    Visa: $0
    Line of Credit: $0 - dipped into for a few weeks and paid off
    Corporate MasterCard: $400 (revolving balance, paid monthly)

    Estimated net worth is now $182,800 (+$39,800 ).

    With that said, the number is not as good as it looks as upcoming liabilities (not yet assessed corporate and personal taxes) aren't reflected.

    No real plan for August, other than to attempt to reduce consumer spending and try to get the revolving personal master card balance to start being under $1,000 per month. On the rate of return front, I've now added in the corporate investment account into my tracking sheet given it will be holding a few different investments for different purposes (short term, and long term holdings).

    My non-registered CAD is still the dog, as expected, (heavily Canadian financials) at -6.50% YTD return; TFSA 1 (balanced in its own right) is at +9.28%; TFSA 2 (global small cap) is +9.18% YTD; RRSP (foreign / USA) is +17.61% YTD, and corporate investment account (global small cap, and a lot of cash) is at 10.77% YTD, which gives an overall investment return of +8.05% YTD (+14.25% annualized). Obviously, my portfolio has a lot of volatility, as I am heavily exposed to foreign currencies but so far I seem to have the stomach for it as I've not sold anything other that the BB stock - but I chalk that up to deteriorating fundamentals and being time to 'let it go'.
    Last edited by Sm5; 2015-08-01 at 12:21 PM. Reason: Missed an un-posted transfer to RRSP, total was out by approximately $3800. Corrected.

  9. #18
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    "Black Monday" update, although really, it wasn't that big of drop.

    On paper, lost about $2700.00, which is actually less than I lost last Thursday. Acting irrational, I bought 50 shares in BMO whilst it was down. Thinking being as that the yield on cost was around 5% and well below their 52 week moving average. Although, I really have to stop buying banks!

    Anyways, since it was an abnormal day, I went and ran my XIRR calculations:

    Non-registered CAD (heavy Canadian financials) is now -17.99%;
    TFSA 1 (balanced) is +2.66%;
    TFSA 2 (global small cap) is now 0.00%;
    RRSP (US and foreign) is +11.24; and
    Corporate account (global small cap and cash) is now +5.34%

    Overall, YTD is now 0.31%, 0.49% annualized. It appears in the last week I have lost, on paper, the years gains, curious what the rest of the week brings!

  10. #19
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    August 2015, a post-mortem

    August 2015 has come and gone. Bad month. Very bad month. Markets were down.


    I bought 50 shares of BMO on the big dip. Didn't sell anything, and didn't even come close to doing so. I guess that's good.

    I am still maintaining large cash buffers and paying far too much to CRA in remittances to catch up for the year ($4,500.00 per month from now until the end of the year so this will make capital growth stagnate). Also added around $2,200.00 to margin account to reduce margin a bit in case of another big drop. Between the drop and large CRA remittances, I’m down this month and expect to sit about even throughout the remainder of the year unless some large unexpected receivables come though (or I win LottoMAX).

    Asset allocation is still close to target, a few more deposits and it should be right where it should be:

    25% Canadian Equities currently at 29.1%;
    35% US Equities, currently at 32.6%;
    35% overseas Equities, currently at 33.2%;
    3% fixed income, currently at 2.3%; and
    2% cash and equivalents, currently at 2.9%.

    Assets as of September 1, 2015:

    Assets
    TFSA 1: $41,000 ($100 monthly contribution)
    TFSA 2: $8,600 (no contributions)
    RRSP: $56,700 (no contributions)
    Non-Registered (CAD): $ 41,000 (no contributions)
    Non-Registered (USD): U$320 (no contributions)
    Savings Account 1: $4,000
    Savings Account 2: $20

    Corporate Current Account: $6,500
    Corporate Investment Account: $23,400 (no contributions).

    Liabilities
    Margin Loan: $10,800 - $2,200 paid.
    MasterCard: $950 (revolving balance, paid monthly, but under $1,000 for a change)
    Visa: $0
    Line of Credit: $0 - dipped into for a few weeks and paid off
    Corporate MasterCard: $700 (revolving balance, paid monthly, bought an external hard drive I needed for work)

    Estimated net worth is now $167,300 (-$15,500). Ouch.


    My non-registered CAD is still the dog, as expected, (heavily Canadian financials) at -12.790% YTD return; TFSA 1 (balanced in its own right) is at +0.61%; TFSA 2 (global small cap) is +0.00% YTD; RRSP (foreign / USA) is +10.55% YTD, and corporate investment account (global small cap, and a lot of cash) is at 4.94% YTD, which gives an overall investment return of +0.704% YTD (+1.06% annualized, woohoo). Obviously, my portfolio has a lot of volatility, and is down significantly. I have sold nothing and don’t intend to. I just hope a few more stocks can drip before prices come back up.

    No real plan for September. Just try to break even by the end of the month (not likely to happen this month) and watch out for business opportunities in the deteriorating Alberta economy.
    Last edited by Sm5; 2015-09-01 at 10:30 PM.

  11. #20
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    Angry September 2015 update

    Short update, not much to say other than a rough month.

    Current asset allocation:
    25% Canadian Equities currently at 29.9%;
    35% US Equities, currently at 32.3%;
    35% overseas Equities, currently at 32.4%;
    3% fixed income, currently at 2.3%; and
    2% cash and equivalents, currently at 3.1%.

    Assets as of October 1, 2015:

    Assets
    TFSA 1: $38,900 ($100 monthly contribution)
    TFSA 2: $8,600 (no contributions)
    RRSP: $55,000 (no contributions)
    Non-Registered (CAD): $ 43,000 ($300 contribution)
    Non-Registered (USD): U$320 (no contributions)
    Savings Account 1: $1,100
    Savings Account 2: $60

    Corporate Current Account: $7,600
    Corporate Investment Account: $23,300 (no contributions).

    Liabilities
    Margin Loan: $10,500
    MasterCard: $1,100 (revolving balance, paid monthly, back over $1,000 again :-()
    Visa: $0
    Line of Credit: $0
    Corporate MasterCard: $300 (revolving balance, paid monthly)

    Estimated net worth is now $166,700 (-$600). Not that bad given the markets lately. Hopefully returns to positive balances again soon...


    Rates of return:
    Non-registered CAD, (heavily Canadian financials) at -6.035% YTD return; TFSA 1 (balanced in its own right) is at +0.017%; TFSA 2 (global small cap) is +0.00% YTD; RRSP (foreign / USA) is +5.857% YTD, and corporate investment account (global small cap, and a lot of cash) is at 3.165% YTD, which gives an overall investment return of +0.563% YTD (+0.753% annualized).

    At least it is still (barely) a positive year!


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