2019-05 Networth

2018

May_2019

M/M $

M/M %

YTD

Assets

Corporate Acct

3,847,322

4,191,154

23,491

0.6%

8.4%

RRSP

717,438

731,261

-1,607

-0.2%

1.9%

TFSA

113,366

137,262

-4,495

-3.2%

21.1%

Personal Acct

310,466

297,891

4,251

1.4%

2.7%

Commodities

44,776

44,776

0

0%

0%

Personal Residence

3,030,000

2,607,000

0

0%

0%

Property- Other

852,450

800,350

0

0%

0%

Property- Office

448,000

473,000

0

0%

0%

Total

9,363,818

9,282,694

21,640

0.2%

4.1%

Liabilities

0

0

0

0

0

Totals

9,363,818

9,282,694

21,640

0.2%

4.1%

It is networth time again. The equity market has been rising. I do not spend much time dissecting what my numbers mean or what happened. I figure now that I am investing in ETFs that this will flail around randomly. And I am fine with that.

I do not try to understand what moves the market and thus our numbers. I simply gloss over any blogs or articles that mention market forecasts or explanations. It is what it is and I frankly do not see anyone knowing anything. Or worse, they may know a lot but it doesn’t matter to the portfolio.

I have never understood folks’ discomfort with not being an expert. I think this whole investing game is simply picking a plan and then sticking with it through thick and thin. There is no perfect investment plan. The best strategy is to get the heck out of your own way.

The more I review plans and numbers online, the more that I see that there are many roads to the promised land. And each of us define this differently.

I enjoy updating the numbers monthly since it helps me keep track of things. It reminds me to further simplify our accounts as added complexity drives me nuts.

Why Invest Passively?

  1. Better quality of life.
    1. I never have to read company reports.
    2. I never have to monitor the news.
    3. I can automate the whole bloody thing.
  2. Know nothing, do nothing.
    1. Takes less time and is much less stressful. It would be impossible to monitor 94% of the global equity and bond markets which is what my all-in-one fund has.
    2. I just have to bet that people will generally prefer capitalism to further their own goals. I can bank on that.

The documentation of my finances will hopefully illustrate how simple all this can be. I truly lack any bells and whistles in my plan.

In fact, when we started our corporation, the accountants told us to draw out a modest salary and leave the rest in the company. And all I did was follow their advice. This directed us to buy a cheaper home.

The changes for the small business deduction in our CCPC are a nuisance. But part of a good life is being flexible. My husband and I are using this to remind ourselves that perhaps it is time to slow down. This can only be a positive thing. Sometimes one just keeps slogging away and it takes changes such as the small business deduction limits to remind you that the goal is not to keep throwing money into the corporation.

Besides, many of us have dealt with emergency medical situations. This is just money. Must keep things in perspective.

I have zero insight into any “optimum” strategies. I do not think they exist. No one can predict what will happen with future taxes and legislation. But one can try to control their own small economy.

I can be open with my husband and children about a general approach to finances. I can continue to simplify our finances so that it will be simple for any of them to take over.

And that is the best that I can do. Be open, be flexible, keep things simple.

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Published by Dr. MB

I enjoy the know-nothing, do-nothing approach to investing.

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2 Comments

  1. I love your mind, Dr. MB! I’m similarly interested in a good enough strategy and don’t want to slice and dice because simplicity is one of the attractions.

    Your parent analogy was apt and resonant.

    Someday I’ll get professional advice prior to Roth conversions since I’m retirement account heavy, but until that day I’ll do what I do best: enjoy learning from you, Gasem, and the wonderful bloggers who are kind enough to take the time to share their experiences, while executing a plan simple enough that even I can pull it off.

    Fondly,

    CD

    1. Hey CD!

      Yup. I need simple now. If I wanted to get all crafty, I’d rather do real estate.

      You like Jacob at ERE as well. I think if you have these frugal tendencies, holding a good enough portfolio will be ideal.

      Frugal folks can almost never be caught out due to low expenses.

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