The upwards glide continues! We are still heavily invested in U.S. stocks which have done well this past month. Our strategy called for currency hedging some time ago; since we are in a currency-hedged product, we are not being negatively affected by our appreciating Canadian dollar.
In June, we finished the month with a total of $562,882 in our investment accounts.
In July we made a regular contribution to our joint Cash/Margin account. Dedicated, regular saving is the key to success in any retirement plan!
I hope through sharing our real numbers, you will be inspired to start saving and investing—it pays!
The Current Numbers
Here are our current Investment Assets as of the last trading day in July. We invest in TFSAs, RRSPs, and a joint Cash/Margin Account. We use a trend investing strategy to determine what we buy and when we sell our positions.
January 1 of the current year is in brackets to help illustrate the change during the current year. Net Worth Change reflects the total increase/decrease of this past month.
The Investment Return is the total year-to-date return on our investment positions. The additional value of contributions are not included in this number.
Investment Assets: $587,310 ($441,813)
Net Worth Change: +$24,428
30x Rule Safe Annual Income: $19,577 ($14,727)
YTD Investment Return: +19.9%
Both my wife and I had the privilege of being able to learn skills and earn pocket money at a young age as both our families were small business owners. This experience translated into great earning opportunities at a young age and we thank our parents for that!
We met when we were young and quickly got on the same page about money. By working as a team, we focused on saving for a future together. We didn't win the lottery, receive an early inheritance, or come into money in any way. We even financed much of our own university costs.
For several years now, we have saved a large portion of our incomes by making calculated decisions about how we spend money. Our Investment Assets are 100% the result of our own hard work and the return on investments.
While we first invested in mainly small and mid-cap stocks (beating the market consistently), I eventually wised up and realized my "savvy" stock picking skills would wear out in time.
As I've mentioned in other posts, even the smartest stock investors can't outperform the index over long periods of time. I also found it tiring to constantly keep up on company news, read quarterly financial statements, and follow the market performance of individual stocks as required in fundamental investing.
After slowly transitioning to indexing over the last few years, in 2016 I ended my dabbling with individual stocks and moved our portfolio to low-cost index ETFs.
We now invest using index ETFs in a trend strategy that I personally developed. To keep our investing costs as low as possible, I use Questrade as my online brokerage as they do not charge trading commissions for purchasing any ETFs. Where index ETFs are not liquid enough for a position size, I am open to using highly liquid stocks which have a close beta to their sub-index.
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