# Dibs' Money Diary



## Dibs

Click here for my December 2011 Update

Hello, I have been following CMF for a while and have found a lot of great advice. I have decided to post my own situation and some of the questions that I have. 

*Description*: 21 year old student just finished a BSc and starting his Master's degree. A few years ago, my parents transfered to me a small portfolio of money given by my grandparents. I want to make sure that I don't screw up managing this money.

*Investment strategy and goals*: Invest in dividend blue chip stocks and index funds. Keep on sleeping well at night. Aim for a 80-20 stocks to bond ratio. 

*Risk Tolerance*: Relatively high? I have few expenses and money to invest. I was not scared during the recent dips, but anxious about when to buy in. However I do prefer to invest in well established companies. 

*Self Proclaimed Weaknesses*: I don't have a financial background. I don't really do due diligence on my stocks. i.e. I understand the definitions of most financial terms used regularly, but I fail to grasp the significance of them. 


*Monthly net income*: Part-time work $490, NSERC Scholarship: $1250. Total *$1740*.
*Monthly expenses*: Rent $100 (live with parents); clothing $100; personal $100; entertainment $100; sports $60 Total:* $460*.

*Assets: *
-->Chequing account:*$17k* 
-->Savings account: *$5k* (0.50% interest if > $5k, 0.25% otherwise)
-->Non registered GICs:*$9.5k*
-->TSFA: *15k* (Cash $5k, GICs $10k)

-->Portfolio (TD Waterhouse): *64k* (Cash 17k, Equities 36k, Index Funds, 11k)
----->Equities: BMO, BCE, BBD, CCO, CNR, NA, TRP
----->Index funds: TD CND e-index, TD US e-index

*Total Assets: 111k

Liabilities: None *

*Recent moves*: Added to index stocks on the dips, opened positions on CNR ($68) and NA ($69). Bought CTU.A at 7.00 and sold at 5.10 (lost around $200).
*Planned moves*: Add to current holdings. Open a position in the retail sector. 

*Questions: *

How am I doing? Is there anything missing?
Any recommendations for the distribution between dividend stocks and index funds?
I have a TSFA open in my brokerage account and I want to put next year's 5k in there. What is the best thing to put in?
I'm looking to add one dividend growth stock in the retail sector. CTU did not work out well. I am looking at PJC.A but am weary from my last choice. Any thoughts?
I have not opened positions in US stocks because I don't have an RRSP set up yet and I think the tax implications in an unregistered account are unfavourable. Is this correct?
Most of my GIC's have renewal instructions as "Renew principal and interest". My bank representative told me that she can't change it until a few days before it expires. Is this typical? Am I being cynical in thinking they do this to lock in money for another cycle?
Should I get some TD e-index bond funds?

Any comments or answers would be appreciated. 

Thanks!


----------



## Jon_Snow

Good lord... how are you doing? 100k in assets at 21? Really need to ask? 

Better than 99.99999999% of people your age.


----------



## Four Pillars

You are not doing badly - that's for sure.

Why do you have so much money in cash? $17k + $5k in your chequing and savings acct.

You should invest the cash in your investment portfolio in something - money market fund or bond fund or something.

I don't know if it's a great idea for someone who doesn't know much about investing to be buying individual stocks. I would keep a larger portion of your equities in the index funds and just have a small amount in individual stocks if you want to learn more about stocks.


----------



## CanadianCapitalist

You are doing great. I'll second Mike's suggestion. If you don't want to do your research on stocks, then why invest in them? You can buy the entire stock market for around 20 basis points these days. With a $100K, you should consider a globally diversified portfolio of broad market ETFs. You already have GICs in taxable accounts, so taxes on foreign broad market funds will be comparable.


----------



## Dibs

Thanks for your comments. After recently reading "The Wealthy Barber Returns" I do see the logic around investing in index funds. However I do enjoy owning the dividend stocks that I have already. 

Do any of you have suggestions for books that I should read to learn more about stock research? 

Mike - the 17k was from a GIC that recently matured. It was with another bank and I recently transferred the funds. Honestly I have just been sitting on it for a while. I will look into your suggestions - bond and money market funds. Thanks!


----------



## Jungle

Check out stock investing for dummies, Canadian version. Borrow it from the library.


----------



## ddkay

Did the wealthy barber become wealthy from giving Greece bondholders haircuts? 

I think you're sitting in a really good position right now, I would (I'm talking my book) reduce index/equity exposure until the markets have more clarity.

I also agree about sticking to index funds for now, it's much harder to screw up that way. In volatile markets (present) pretty much every individual stock and asset class except US dollars are moving together, there's no edge here.

Also if you do go the stock picking route take note from momentum names like Crocs, Green Mountain Coffee, Netflix, Amazon, Baidu, that go up and up seemingly forever. That's usually not healthy and usually not sustainable, be wary of terms like "uncontrollable growth", and be prepared to exit when price turns against you.


----------



## Argonaut

ddkay said:


> Did the wealthy barber become wealthy from giving Greece bondholders haircuts?


Oh boy, that's a groaner. I love it.

Dibs, I work at the bank, and I have never seen anyone in your position at your age. You are probably the richest 21 year old in Canada until Bieber hits it. I suspect you got money from the family, but no one can fault you for that. 

As for individual stocks, look into a REIT to further diversify; RioCan is a standard. I'm not a huge fan of Cameco and Bombardier for holds. CNR, TRP, and BCE are world class stocks. Perhaps pick only one bank, but that is just my preference. I would look into diversifying into some US dollars and US equities. MCD, CVX, and CAT are favourites of mine on the Dow.


----------



## Dibs

Argonaut said:


> I suspect you got money from the family, but no one can fault you for that.


You are right. As I alluded in my original post, most of this money is from my grandparents. 

One thing to note is that I will not be making any significant income for the near future since I am in grad school. My goal at the moment is to preserve what I have. Thanks for your comments. =)



ddkay said:


> Also if you do go the stock picking route take note from momentum names like Crocs, Green Mountain Coffee, Netflix, Amazon, Baidu, that go up and up seemingly forever. That's usually not healthy and usually not sustainable, be wary of terms like "uncontrollable growth", and be prepared to exit when price turns against you.


Noted.


----------



## the-royal-mail

You have an excellent base to start from. When I was your age I had a diploma and student debt.

Wouldn't it be better for you to move out and get your own place? IMO that should be your priority.


----------



## Karen

Why would it be better to move out and get his own place, TRM? He has already told us that "One thing to note is that I will not be making any significant income for the near future since I am in grad school. My goal at the moment is to preserve what I have."


----------



## the-royal-mail

Yes sorry, I misread and thought they had just graduated and were done school. A few more years to go yet.


----------



## balexis

The financial aspect of moving out is one important thing to consider, but not the only one. IMHO, a 21 y-o with 100k in the bank should consider renting out a nice appartment near school and start living a real adult life. Will it cost more than staying at your parent's house? Of course. But the learning experience of flying by yourself is quite awesome.

Just my 2 cents.


----------



## Karen

I don't agree, balexis. In my opinion, providing that he gets along well with his parents, it makes sense to continue living with them and use the money from his grandfather as the basis for establishing a secure financial future. Of course, it's his decision to make, and it seems he has chosen to continue living at home; if his grad school goes on for several years, he may well decide at some point that it's time to get out on his own but, for the time being, I think he's made the right decision.


----------



## Maybe Later

I like the advice above that says don't keep too much in individual stocks and stick most of it in index funds. Start thinking about tax efficiency - even though scholarships aren't taxable, it would be nice to have everything in the right place if and when you start working. Keep in mind that scholarships don't earn you RRSP contribution room (last I checked).

Definitely think for the long run. If you're happy at home, stay at home and save some $$. MSc's have a frightening habit of turning into PhDs, then post-doc stints. Wouldn't it be nice to be able to consider anywhere in the world once you're done grad school with that kind of cash in your back pocket and make the choice about the research and not about the funding level? Also, even in the best labs, scholarships and grants run out - or students run out of funding eligibility time. That kind of cushion gives you lots of options.


----------



## Dibs

*Rational vs emotional*

I've been working on a better financial plan and want some input. I want to keep the stocks that I have at the moment, but invest the rest of my money into passive index stocks (TD e-series), as many of you have suggested.

I would be aiming for around 50% Index funds by February 2012.

_Image removed_

Some notes:

I aim for a 15/30/30/25 distribution of index funds. (bond/cdn/us/intl)
I will put 10k of Bond Index funds into my TFSA, including the new year's 5000 contribution.
I will have 9k investing cash floating because a GIC matures in January.
I will have 5k in the savings account to get the 0.5% interest
At the moment I hold BMO, NA, CNR, BCE, BBD and CCO

One interesting thing that I have noticed is that I might not be able to control my emotional responses to the stock market as much as I think I can. For example, I recently sold my TRP shares on the fear that Keystone would be delayed and the stock would fall. The next day Keystone was delayed and I was happy. But a few weeks later the stock is still doing fine and I felt maybe I should have kept holding the stock. I also feel happy when the stock market goes down since I get to buy more stocks, but the market goes back up and I feel that I've missed the dip. 

This is partly why I want to make this plan, to remove emotion from my investing. Unfortunately even with this plan, I feel some emotional urge not to carry it out this passive investing plan. A lot of the people on this board who are active traders and talk about how they make a quick 3-4% on dips (e.g. Suncor last week) don't help my cause . 

TLDR: My rational self understands that this plan would be a good strategy. How can I convince my emotional self that this is right way to go?


----------



## Dibs

February Update:

_image removed
_

My strategy at the moment is to reduce my cash position by gradually buying index funds. I may add more to my individual stocks if they look cheap. 
I am parking 20k in cash for the moment in case a major opportunity presents itself. In the meantime it will be earning 1.25%. 
My TSFA is maxed with my bond index, GICs, and some equity. 
At the moment I hold BMO, NA, CNR, BCE, BBD and CCO and SAP.


----------



## Dibs

Here is an update since my February post. My goal for the last few months was to reduce my cash position and put them into indexes. 










Indexes = TD Canadian, US and International e-index funds
Stocks = Canadian mid-large cap stocks
Fixed income = GICs and TD Bond-e index fund
Cash = Checking account and TD High interest savings account

I now plan to roughly keep a 50/50 split between indexes and individual stocks.


----------



## Daenerys Targaryen

Are you achieving your goal of capital preservation? 
I would expect that your capital has been persevered and you have seen decent portfolio growth since last fall.

Nice job on your allocation, you should be proud of yourself.


----------



## Dibs

My capital is being preserved so far, and I am adding each month with savings from my income. I haven't seen too much portfolio growth so far, but I am comfortable in my position and I sleep well at night. :encouragement:


----------



## Dibs

My net worth is up 3.41% in the month of June. 

I also had some fun generating my sector and geographical equity allocations. 










My sector allocation is separated into my stock and index holdings, and then all together.




























Some points to note:

I am overweight in Canadian equities. I plan on buying more TDB911 to increase my international exposure. However I'm not sure what my target allocation will be..
I am overweight in Financials and Industrials. Not sure what I plan to do here, maybe focus on buying other sectors. I like my banks and railroads though =)


----------



## Dibs

Between July 12 and Aug 8 I am up 1.02% in total networth, which includes some costs for plane tickets and conference fees that will be reimbursed only in November. My index funds increased 5.55% after buying some TDB911 and my individual stocks increased 2.97% overall after buying some BBD.


----------



## Dibs

In the month of October my networth rose 1.79%. I also found a new useful spreadsheet that led to this table and graph:










Current Allocation









From the looks of it, I may as well have gone 100% index funds.
Any comments?


----------



## Dibs

Finally got around to do a review of 2012.

Date range: 14 Feb 2012 - 2 Jan 2013
Networth change: +16.57%
XIRR: +3.49%

Networth at the end of January was up 4.16% mainly due to the rise in stocks. 

I also wrote out an investment policy statement over the holidays. In this statement I outlined my investment philosophy, objectives, risk tolerance, time horizon, holding limits, target allocation, selection criteria, rebalancing policies, and benchmark.

My target allocation and current breakdown as of 05 Feb 2012 is as follows:










This year I plan on finishing my masters, finding a job, and moving out. My days of cheap living might be coming to a close...


----------



## Dibs

Sept 1st update: 

YTD XIRR is +6.99% versus +8.04% for my benchmark. Benchmark is:


40% TDB900 Canadian Index
20% TDB902 US Index
20% TDB911 International Index
15% TDB909 Bond Index
5% cash

YTD Networth change is +15.47%. Monthly changes are shown below:











Recent purchases:

100 CMG at $21.10
50 Potash Corp at $37.71
50 Potash Corp at $29.90 
100 Telus at $29.90
TDB900 and TDB909 (for rebalancing purposes)

Best performers (YTD change since dec 31 2012 price)

BBD +27.39%
TDB902 +22.35%
CMG +16.89% (I'm up 17.11% from book value)

Worst performers (YTD)

POT -23.45% (I'm down 15.62% from book value)
REI.UN -14.55%
TA -10.45%


----------



## Dibs

*Couch potato is still still in the lead...*

Nov 3rd update: 

YTD XIRR is 13.58% versus +14.72% for my benchmark.

Recent activity

Sold 30% of my Bombardier at $5.35.
Two GICs matured in my TFSA, I withdrew the money and will put in my brokerage TSFA next year. Money will either go into a short term bond fund or an HISA.


----------



## Dibs

Dec 1st update:

YTD XIRR is +15.87% vs +16.84% for my benchmark.

Last week I switched my TD e-series index funds to lower cost ETFs:


TD Canadian Index-e (TDB900) --> Vanguard FTSE Canada All Cap Index (VCN)
TD US Index-e (TDB902) --> Vanguard US Total Market (VUN)
TD International Index-e (TDB911) --> iShares MSCI EAFE IMI (XEF)
This reduced my average MER from 0.39% to 0.22%, which equals roughly a 45% reduction in the fees I pay. The switch cost me $29.97 for three buy commissions. Spreads on the ETFs were around 2c. I missed 2 days in the market. I will use the dividends from the ETFs to rebalance by buying TD e-series funds. 

My asset allocation is roughly in line with my target 80% equity, 20% bonds+cash. Currently I have less bonds and more cash, most of it is in a HISA yielding 1.25%. I considered buying a short term bond fund like VSB and XSB but I decided not to. The YTMs are around 1.6% and 1.63 respectively, and when you subtract the MERs (0.19 and 0.28) you get 1.41% and 1.35%. Not much more than the 1.25% from the HISA, and with the added interest rate risk.


----------



## Dibs

*2013 Year End Review*

2013 XIRR was +16.65% vs +17.23% for my benchmark. My benchmark is a portfolio of TD e-series index funds with the same target asset allocation.

2013 Best Performers


 CNR +33.44%
 CMG +24.81%
 BBD +22.61%

2013 Worst Performers


 POT -13.93%
 TA -10.85%
 REI.UN -10.12%

Overall it was a good year. I didn't beat my benchmark, but it is hard not to be happy with a 16% return.


----------



## Dibs

*March 1st 2014 Update*

YTD XIRR is +5.37% versus +4.56% for my benchmark.

Recent activity


Bought HR.UN at 21.26 (TSFA)
Bought DI.UN at 8.42 (TSFA)
Bought CNQ at 35.10 (TSFA)
Bought BBD.B at 3.83 and 3.64

Markets have been steadily gaining for a while now. Will the ride continue?


----------



## canucked_up

My first look at your diary. Looking good. You're staying busy with this, don't forget to have some fun besides the fun we have helping our money grow. 
Will the ride continue? Let me know when you know. :encouragement:


----------



## Dibs

Hey canucked_up, thanks for the comments! I do make sure to have some fun besides my bean counting. Re: Market direction - I don't think I will ever know which way the markets are going to go... Maybe I am better off knowing that I will not know than not knowing that I will never know. You know what I mean? :tongue-new:


----------



## Dibs

*April 1st 2014 Update*

YTD XIRR is +7.04% versus +4.90% for my benchmark. 

Recent activity:


Bought 500 shares of Sama Resources (SME) at $0.19

Benchmark was flat for the month while several of my stocks made nice gains. Overall it was a boring month of holding stocks and collecting dividends. Markets are still doing okay so far.


----------



## Dibs

*May 4th 2014 Update*

YTD XIRR is +7.46% versus +6.60% for my benchmark. 

Recent activity:


Sold some BBD.B at $4.28


----------



## Dibs

*June 1st 2014 Update*

YTD XIRR is +6.91% versus +6.53% for my benchmark. 

Recent activity:

Bought some TDB 902 US Index-e in my TFSA for rebalancing


----------



## Dibs

*July 5, 2014 Update*

YTD XIRR is +8.75% versus +8.70% for my benchmark. 

Recent activity:

 Bought some Lassonde Industries (LAS.A) at $110

Here is an updated graph of my asset allocation since the beginning:










In other news, my Master's thesis has been accepted and I started a new job as a junior software developer in July! I'm on a 3 month probation period and I hope I don't screw it up.


----------



## RBull

Congrats Dibs. You've proven yourself well with the management and growth of your grandparents' financial gift. 

It seems to me your new employer will do very well by you. Good luck.


----------



## Dibs

*Aug 2, 2014 Update*

^ Thanks for the reply RBull =)

YTD XIRR is +9.20% versus +8.50% for my benchmark. 

Recent activity:

 Bought 500 more shares of SME at $0.30 (play money I don't mind losing)

August was a volatile month last year, with big drops in the potash and telecom companies. Maybe we'll see some other interesting movements this year..


----------



## Dibs

*Sep 1, 2014 Update*

YTD XIRR is +11.45% versus +10.46% for my benchmark. 

Recent activity:

 Bought some TDB 911 Int'l Index-e for rebalancing purposes


----------



## Dibs

*Oct 1, 2014 Update*

YTD XIRR is +9.48% versus +8.75% for my benchmark. 

This was the first month since I started this diary that my networth has decreased (-1.15%). So far, I haven't lost sleep about it yet. If there is an actual serious downturn in the markets, we will see how accurate my estimation of risk tolerance is.

Recent activity:

 Bought some more CMG at $12.55 and $11.51
 Bought some TDB 911 International Index-e for rebalancing purposes


----------



## Dibs

*Nov 1, 2014 Update*

YTD XIRR is +10.22% versus +8.34% for my benchmark. 

This month I was more active, although I did not end up trading at all during the week where the markets dropped wildly.

Recent activity:

 Increased position in Saputo (SAP) at $32.00
 Increased position in Cameco (CCO) at $18.80
 Sold half my position in Bombardier (BBD) at $3.93
 Bought some TDB 900 Canadian Index-e for rebalancing purposes
 Bought some TDB 911 International Index-e for rebalancing purposes


----------



## Dibs

*Dec 2, 2014 Update*

YTD XIRR is +12.13% versus +9.89% for my benchmark. 

Market has pretty much rebounded from its October scare. 

No activity this month.


----------



## Dibs

*2014 Year End Review*

Summary:


2014 XIRR was +11.79%, versus +9.55% for my benchmark.
Networth increased +25.89%
Finished master's degree in June
Started a new job in July

My benchmark was an indexed portfolio matching my target asset allocation:

40% TDB900 Canadian Index
20% TDB902 US Index
20% TDB911 International Index
15% TDB909 Bond Index
5% cash

December activity: Bought some TDB900 Canadian Index-e for rebalancing purposes

2014 Best Performers


 SAP +44.33%
 CNR +31.94%
 LAS.A +18.19%

2014 Worst Performers


 TA -21.96%
 CCO -13.53%
 BBD -9.98%

Previous years:









Overall I'm very happy with my 2014 year. Passed some major life milestones and beat my benchmark. On to 2015!


----------



## Dibs

*Feb 1, 2015 Update*

YTD XIRR is +2.36% versus +4.53% for my benchmark. 

Recent activity:


Bought TD Bank at $51.04 in non-reg. account
Bought CAD, Intl and Bond TD e-series funds in my TFSA
Bought CSH.UN at $12.27 in my TFSA
Bought BEI.UN at $63.15 in my TFSA


----------



## CadMan

You're doing well to be so focused on your investments and net worth at a young age. Most people don't have the benefit of getting a sizeable nest egg to start out with and you are doing well to not squander it on depreciating assets (new car) or pissing it away! One comment I would have (that may just not be reflected in your comments in this thread) is to not lose focus on the importance of increasing your earning power. The $100k you started out with puts you way ahead of your peer group and gives you a great advantage at this stage of your life - just make sure that you continue to do the things you need to do to increase what's coming in the door (i.e. not chasing nickels by focusing on the month-to-month returns of your current investments and forgetting about the dollars!)


----------



## Dibs

Hi CadMan, thanks for the comments! 

I do a checkup on my investments and post here once a month, I don't spend much time thinking about it in between. Do you think this is too often?
As for increasing my earning power, that is definitely on my radar. I am in my first year at my first full time job, so hopefully there is a lot of room for me to grow.


----------



## Dibs

*March 2, 2015 Update*

YTD XIRR is +5.35% versus +8.08% for my benchmark. 

No recent activity.


----------



## Dibs

*April 4th, 2015 Update*

YTD XIRR is +4.07% versus +7.24% for my benchmark. 

Signed a lease for an apartment that started April 1st. Moving in with my gf =)


----------



## james4beach

Be aware that (depending on province), moving in together can have some financial side effects
http://www.cbc.ca/news/canada/4-myths-about-common-law-relationships-1.1315129
http://www.huffingtonpost.ca/2013/03/18/bc-family-law-act-common-law-married-couples_n_2901068.html?

For instance, if you live in BC then after a couple years you are essentially married and both people own assets 50/50.


----------



## quyenngoc

*theard good*

i like it, so i don't know it


----------



## Dibs

*May 3, 2015 Update*

YTD XIRR is +4.78% versus +6.25% for my benchmark. 

Thanks for the comment James, I am aware of the implications.

This checkup I noticed that my benchmark returns were not correct. The way I measure my benchmark is to make a mock 10k portfolio in Google Finance and then allocate funds on the 1st day of the year. My benchmark asset allocation is all TD e-series index funds: 40% cdn, 20% us, 20% intl, 15% bonds, and 5% cash. 

I saw that the value of the portfolio as of May 2nd was $10,624.50, i.e. a gain of +$624.50 or +6.25%, but google was reporting the "Overall return" as 6.57%. I had been using this "Overall return" as my benchmark measure. 

It turns out that google measures their overall return from all the assets excluding cash. Since I was keeping 5% ($500) of the portfolio in cash, they took the +$624.50 and divided it by $9500 to get a return of %6.57. I'm not sure if this is a mistake on google's part, or they intended it to be calculated this way. Nevertheless, I want to see the total portfolio return, including the cash portion. The benchmark returns for the previous months would have to be revised down by around 0.5%.


----------



## Dibs

*July 10, 2015 Update*

I'm a little behind on my updates, but here it is:

June 2, 2015: YTD XIRR was +4.41% versus +7.19% for my benchmark. 
July 1, 2015: YTD XIRR is +1.77% versus +4.70% for my benchmark.

So far this year, my benchmark has been soundly beating my portfolio.


----------



## Dibs

*Aug 1st, 2015 Update*

YTD XIRR is +3.84% versus +7.72% for my benchmark. 

Recent activity:


 Bought some TDB900 - Canadian Index for rebalancing purposes



Dibs (Nov 2014) said:


> Sold half my position in Bombardier (BBD) at $3.93


Bought back the same amount of BBD at $1.70


----------



## Sm5

Dibs:

Without having to go back 6 pages, what is your benchmark?


----------



## Dibs

Hi Sm5,

My benchmark was an indexed portfolio matching my target asset allocation:
40% TDB900 Canadian Index
20% TDB902 US Index
20% TDB911 International Index
15% TDB909 Bond Index
5% cash


----------



## Dibs

*Sept 6, 2015 Update*

YTD XIRR is -2.75% versus +1.81% for my benchmark. 

Not a nice month on the markets, but it is also nice to see that the benchmark dropped as well. I wasn't watching the market that closely. Its sad to see the value of my portfolio dropping, but so far I still feel OK and will stick to my plan.


----------



## Dibs

*Oct 3, 2015 Update*

YTD XIRR is -2.61% versus +0.69% for my benchmark. 

Still sticking to the plan. Asset allocation is telling me to buy canadian index, which is what I did.


----------



## Dibs

*2015 Review and IPS Update*

My 2015 XIRR was -0.14% versus +3.51% for my benchmark. 

Here are the yearly numbers from the last four years since I started tracking my progress:










Some things I noted:

I didn't beat my benchmark this year. This was due to some big losers in my stocks (BBD, TA) as well as a higher US and International exposure in my benchmark. 
My net % change decreased from +25% in 2014 to +6% in 2015. This is mainly due to the increased costs of paying for rent, food, and utilities after having moved out of my parents. 
Reviewing my monthly cash flow I am saving around 50% of it.

Reviewing my Investment Policy Statement, I've decided to make some changes:

The first change is that I am going to move towards using more index funds. Over the last few years I have been benchmarking my XIRR to a basket of index funds and I have not done much better than them. Now that I am working and have less time to spend following stocks, I think index funds are the simpler way to go for me. I have therefore moved my allocation from 35%/40%/25% to 25%/50%/25% Stocks/Index Funds/Other. I will not actively sell stocks, but make my future contributions to index funds to move to my target. 

The second change is that I am going to adjust my asset allocation to reduce my home market bias. This was my target allocation for 2015:


35% Canadian and US Stocks
13.3% Canadian Index Fund
13.3% US Index Fund
13.3% International Index Fund
10% Fixed Income
10% Cash
5% REITs

The problem with this was that my Stocks allocation was all Canadian stocks, meaning that my breakdown was essentially 48.3% Canadian equity, 13.3% US equity, 13.3% International equity, and 25% other. I've changed may target allocation for 2016 to be the following:


25% Canadian Stocks
10% Canadian Index Fund
20% US Index Fund
20% International Index Fund
10% Fixed Income
10% Cash
5% REITs

This reduces my equity portion to 35% Canadian, 20% US and 20% International. So I still have a home bias, but it is not almost 50% of my portfolio now. 

One thing I realized is that it is a bad time to shift funds from Canadian equity to International equity, given how Canadian stocks have fared in 2015. I did have to ask myself if I was essentially buying high and selling low. My gut was telling me I should buy Canadian index since it dropped compared to US and International this year. However, with the change in my asset allocation, I am still overweight in Canadian equity.

So in order to move towards my new allocations, I deployed my 2016 RRSP and TFSA contributions into US and International TD e-index funds. I didn't like doing this, but that is what I had to do to move towards my targets. I'd be interested in hearing what other people think of this.

Here's to a better year in 2016!


----------



## Dibs

*Feb 1, 2016 Update*

At Feb 1st, my YTD XIRR is -2.19% versus -3.07% for my benchmark. 

It feels bad buying the indexes at the beginning of the year and then watching everything drop, but it was nice to see that I was doing better than my benchmark.


----------



## Dibs

*May 8th 2016 Update*

On March 1st, my YTD XIRR was -0.50% versus -2.81 for my benchmark. 
On April 1st, my YTD XIRR was +1.17% versus -1.86% for my benchmark.
On May 8th, my YTD XIRR is +1.85% versus -1.28% for my benchmark. 

I have not been paying much attention to the markets these last three months. It looks like my non-index portion of my portfolio has performed better these few months.

My indexes that I purchased for my RRSP in January are still in the red, but I am not too worried.


----------



## Dibs

On June 11th, my YTD XIRR was +1.78% versus -0.03 for my benchmark. 
On July 1st, my YTD XIRR was +3.90% versus +0.31% for my benchmark.
On Aug 1st, my YTD XIRR is +6.12% versus +3.95% for my benchmark.


----------



## Dibs

*Oct 7, 2016 Update*

On Sept 5th, my YTD XIRR was +8.14% versus +4.84% for my benchmark.
On Oct 1st, my YTD XIRR was +7.94% versus +4.96% for my benchmark.

I haven't been paying much attention to the markets.

The last financial article I read was about the CEO of WealthSimple, quite interesting. http://www.theglobeandmail.com/repo...d-ceo-terrorizing-bay-street/article32209836/

I will make some orders to purchase index funds to balance out my allocation this month.


----------



## Dibs

*2016 Year-End Review*

My 2016 XIRR was +12.35% versus +6.97% for my benchmark.

Here are the yearly numbers from the last five years since I started tracking my progress:









_See my previous year end reviews for 2013, 2014, and 2015 _

Some things I noted:

 In my 2015 review I hoped for a better year in 2016 and it went that way. I handily beat my benchmark this year by around 5%. Many of my stock holdings performed very well.
 My net % change jumped back up to 23% as I increased my income and also was able to share costs of living with my partner.
 This year I was a lot less involved in my investments. I would say I've spent around 5 hours total this year looking at my portfolio, including this year-end review.
 I have not made any changes to my investment policy statement this year.
 My 2016 TSFA and RRSP contributions are going towards TDB 902 (US) and TDB 911 (international) indexes
 After these contributions I am still underweight in international and US equity. Future money will be earmarked for these sectors.

Let's hope 2017 goes as well as 2016!


----------



## Dibs

*June 2017 Update*

On April 4th, my YTD XIRR was +3.38% versus +2.52% for my benchmark.
On June 2nd, my YTD XIRR was +6.80% versus +5.74% for my benchmark.

Here is an updated progression of my asset allocation since I started this diary:










Since my IPS target allocation change in 2016, I have been allocating new cash only to index funds. You can see that the allocation into individual stocks has been dropping steadily since then. 

Cash remains at around 17% of my portfolio, which fits relatively to my 80/20 split I want between equity and fixed income. Around 3/4ths of my cash is in investment savings accounts, so they don't generate a lot of interest. I have been looking to buy more of the TDB909 bond fund when possible.

At work I have been talking to my colleagues about personal finance. I've found that the best way to go about it is to not give any advice at first. Instead I give them book suggestions, and if they actually read the book I then discuss the ideas in the book with them. My go-to introductory book is Millionaire Teacher, which I was happy to see passed along to several of my other co-workers without my intervention .


----------



## Dibs

*2017 Year-End Review*

My 2017 XIRR was +9.95% versus +7.03% for my benchmark.

Here are the yearly numbers from the last six years since I started tracking my progress:










Some recent activity:


 I bought a small amount of ENB at 47.41
 Our family grew from 2 to 3, so we are expecting increased expenses in 2018.
 Contributed to my TFSA today and bought index funds with part of it.
 According to my asset allocation, I am still overweight in Canadian index, so I will continue buying US and INTL index funds. 
 The other part was used to set a limit order to buy 2k of BEI.UN at $40, expiring at the end of January.


----------



## Dibs

*2018 Year-End Review*

Wow, a year has past by already! 

My 2018 XIRR was -3.21% versus -6.30% for my benchmark.

2018 was busy, and I did not pay much attention to the market. Only started noticing it in Nov/Dec when people were talking about it going down. While my XIRR is negative for the year, I am pleasantly surprised that I beat my benchmark by 3%. 

Here are the yearly numbers from the last seven years since I started tracking my progress:










2018 Highlights:

- As predicted, our expenses went up. Mainly they were childcare expenses and paying around 50% more in rent for a much larger space. This in combination with the negative market contributed to a very small increase in my total net worth (0.73%).
- I'm not including my child's RESP funds in my networth calculations, and the contribution is listed as an expense in terms of cash flow.
- Most of my incoming cash flow was spent on indexes or saved up as cash, except for the one purchase below:
- Increased my holdings in NTR at 55.85 in February, I think this was shortly after the merger. The stock was going down but insiders were buying.
- Sold my full position of BBD.B at 4.27 in May. Stock peaked at $5.40 in the summer before tanking to around $2. I did feel remorse when it was above, and also felt happy that I sold after it went down. What a ride... BBD.B was the first stock I bought by myself, long before I had read about index funds.

See you next year...


----------

