Net Worth Update: April 2018

Monthly Summary

In April 2018, the U.S. stock market stayed range bound. The market hasn't fallen lower than the lows of February 9, but the market is also making lower highs on each rally before declining. We're seeing a similar pattern play out in international developed and emerging markets.

Within the sectors, there are an increasing number of breakdowns demonstrating a broad-based decline. Even technology and semiconductors--two of the strongest segments of the market--are trading very close to their 200-day SMA. The only sector that is picking up a bit is the energy sector, but that rally also has failed to break out above the January highs at this point.

Just like I stated last month, now is not a time to aggressively pile into the stock market. The markets could break out and begin to make new highs, but they could just as easily fall precipitously. I would wait to see which way the trend goes. In the meantime, cash is your friend. Similar to last month, I'm still holding onto mostly cash and some stock positions that haven't hit their exit points. The slow bleed continues!

In March, we finished the month with a total of $661,171 in our investment accounts. We were down -3.44% that month on a investment return basis. This month I once again added a regular contribution to our joint non-registered account. Although our account balance is a bit higher in April, our investment returns were once again slightly negative for the month.

I hope through sharing our real numbers you will be inspired to start saving and investing young—it pays!

The Current Numbers

Here are our current Investment Assets as of the last trading day in April. We invest in TFSAs, RRSPs, and a joint margin Account. We use a version of Dual Momentum and a moving average/breakout trend strategy to determine what we buy and when we sell our ETF 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 including new contributions.

The Investment Return is the total year-to-date return on our investment positions, corrected for new contributions at the end of the month. Due to the end-of-month adjustment, the true rate of return on a daily adjustment basis would be slightly different dependent on the intra-month return on the new contribution.

Total Investments:  $662,087 ($670,856)
Monthly Net Worth Change:  +$916
30x Rule Safe Annual Income:  $22,069  ($22,362)
YTD Investment Return:  -4.94%

Background Story

My wife and I are late-20s professionals working in the public sector. We don't earn enormous salaries, but by keeping our spending under control we save a large portion of our incomes each month. Our Investment Assets are 100% the result of our own hard work and the return on investments; we have not received any gifts or won any lotteries.

While we both work in pension careers, for this purpose we don't include pension values in our net worth nor pension contributions in our savings. Our investment assets and contributions are from our net paycheques.

We invest primarily with index ETFs using a dual strategy portfolio that I personally developed and maintain. To keep our investing costs as low as possible, I use Questrade and Interactive Brokers as my online brokerages. Questrade is my go-to choice for registered accounts. Interactive Brokers offers powerful tools, low commissions, and low margin interest for our joint margin account.

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