2019-05 Passive Income




iShares Core MSCI All Country World ex Canada Index ETF




iShares Core S&P/TSX Capped Composite Index ETF




BMO Discount Bond Index ETF




Vanguard Growth ETF Portfolio








Dividends- Corporate



Interest- Corporate



Passive Income- Corporate



RRSP- Hubs




RRSP- Mine




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TFSA- Mine




Dividends- Personal



Interest- Personal



Passive Income- Personal






Creating passive income has become my new interest. I never really thought about it all that much in the past.

But creating truly passive, do-nothing income is the best of all. That is what dividend and interest income translates into for me nowadays. The cash pops into our accounts without me doing anything. No more sitting on savings accounts with 0.6% interest.

I reinvested our accounts to earn another 1% more, but it adds up rather quickly. I am training my kids to also start to focus on passive income. I wish I appreciated this lesson earlier.

Our real estate investments in the past did generate cash flow. And it was a healthy amount. However, it did take work or money to respond to our renters. It was hardly onerous but I prefer doing absolutely nothing instead.

I don’t think there are any other passive income streams that one can get without additional work. The ability to receive interest payments and dividends from your investments make the most sense.

In Canada, one has the chance to receive government benefits eventually, which is indexed to inflation. It all hinges back to living modestly such that whatever passive income one can generate will supercede it. Then you are financially independent no matter your age.

Likely the fastest way to generate passive income would be real estate investors. But this is a business as well as an investment. I would have zero issue using more cash flow rentals if we were earlier in our careers. But at this stage in our lives, we prefer ZERO work outside Medicine.

Our human capital has been in Medicine. We both agree we have no desire to do any other work aside from our career.

This makes things easier since many personal finance blogs are all about the side hustle. I definitely will say a big fat “No” to that. I can barely keep my regular life organized. I can not handle further complexity. I am simply at a different stage in my life.

Besides, I am not one to care all that much about generating “more” with effort. I have a good handle on what is enough for us. I get very tired when the bar keeps getting moved once a goal is reached.

If most physicians can do the simple things such as live modestly and save the difference, this would be enough. Many just need to stop buying liabilities would be a good start.

This blog should highlight how simple it can all be. I do NOTHING complicated. I seriously only engage in entering totals from my accounts into a spreadsheet.

I might have been a horrid investor but I could certainly save. Trust me, it is not a difficult effort since spending is more of a hassle for me. I love shopping at Costco since there is a paucity of choices. I dislike the ongoing choices required for shopping at other places.

Limiting choices also pertain to my investments. I look forward to streamlining my portfolio. I plan to keep the following:

  1. Legacy Stocks:
    1. Amgen
    2. Berkshire B
  2. VGRO- Vanguard Growth All-In-One ETF (80/20)
  3. VAB- Vanguard Canadian Aggregate Bond Index ETF

I have decided to gradually move the GICs in my RRSPs to VAB- a bond ETF. I plan to hold more fixed income and this will make everything easier in time.

This is the part that those who DIY invest recognise. It takes time to change portfolios. It will take about 5 years for my GICs to mature before the whole RRSP portfolio can be discharged into VAB. Patience is key. But it will be very simple when it gets rolled over.

Anyhow, I am glad that I am tracking our passive income. My husband who rarely asks about the finances says he really likes passive income. He can wrap his brain around that.

As an aside, I am glad that my husband does not care all that much about what I am doing with the portfolio. It is much easier to take care of this by myself. I tell him that if I mess up the finances, I guarantee that I would work to recover it. He knows that I can and would and thus he does not fret about it.

Hey, it works for us. Your mileage most certainly would vary.

And oh yeah, how about them Raptors!!! Building an automatic portfolio will give me more time to watch championship playoffs. June is the best month for that simple indulgence.

2 replies on “2019-05 Passive Income”

  1. Hi Dr. MB!

    To this day, I still find the concept of passive income amazing. Seeing money getting deposited into our accounts from interest/dividends just from clicking a mouse button is truly money making money at the purest form of passivity. At your level, it’s like having another salary without working. Sometimes, it almost seems like “cheating” in the game of life. 🙂 But that’s how the world works.

    Looks like you’ll be hitting 6 figures for the year-end in passive income. Great job!


    p.s from the bandwagon – wow, what an impressive win by the Raptors!

    1. Hey DN!

      Haha about the passive income. I suppose it is all relative since we earn very little compared to a proper RE investor like yourself.

      But we do not have good systems in place for RE investing at this point. Also I like doing ZERO for my investments now.

      I am quite good at being lazy with money. I don’t care about tweaking and optimizing etc. I think I am similar to most mothers and wives that way.

      Basketball would be the only sport that I would watch live anymore. I have fallen asleep at enough live baseball, soccer and hockey games unfortunately. ☺️

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