June 2022 Financial Update

“Don’t tell me what you think, tell me what you have in your portfolio.”

― Nassim Nicholas Taleb, Skin in the Game: Hidden Asymmetries in Daily Life

My Investment Philosophy

  • Diversify – investments and taxes.
  • Do nothing – automate.
  • Develop margin of safety – allow assets to compound.

Portfolio

I treat all accounts as one portfolio.

  • VGRO – 86%
  • Cash – 4%
  • VAB – 6%
  • GIC – 4%
  • Asset Allocation – 69%
  • Portfolio Gain (Loss)
    • YTD – (1,130,082)
    • 2021 – 728,410
    • 2020 – 495,984
    • 2019 – 190,513

Mailbox Money

“Life is really simple, but men insist on making it complicated.” Confucius (BC 551-BC 479) Chinese philosopher.

I have zero alpha.

I want “know nothing, do nothing” mailbox money.

Mailbox Money

  • YTD – 21,285
  • 2021 – 136,578
  • 2020 – 130,610
  • 2019 – 110,068

June 2022

The market is taking a beating. This was expected to say the least. While one is accumulating, you simply can not care about this. I will follow a reasonable investment process and leave it alone.

It took me a while to figure out an investment schedule. Bimonthly, monthly or quarterly? I have settled on a monthly regime and it is working well enough. The issue is that most of our investments are in taxable accounts and this raises some accounting issues. You have to track more if you buy more frequently. Thus I decided on the monthly schedule.

I also figured that I work better with a sweep account system. Our income is not regular and thus every other system requires too much mental bandwidth. Nowadays, I simply keep a set amount of cash in my main chequing accounts and sweep the rest to buy more VGRO.

This all may seem elementary to many folks who get paid a regular salary. However, self-employed people have to think about such things on a regular basis.

I have only been an employee for one year of my working life so this is something I am very accustomed to.

I recently had to have a discussion with my husband about our dividends. I prefer to think of total return. I am not a dividend investor. I use dividends as an automated way to cash out parts of our portfolio when we start to spend our portfolio. I have my spreadsheet to track that we are not spending beyond 3%.

I also have finished giving our children a pot of money to start their own financial independence journey. This was an important goal for me. I would rather give them a smaller sum earlier. This way, they get to learn how to invest and grow this into a larger pot of money.

I would not give them a fully formed portfolio. If they are good investors, they will be able to retire off this amount given a long enough runway. If they are not good investors, they would have spent it all but I would have given them less since I gifted this to them in their 20s.

Either way, this is what I chose to do as they will be able to learn whatever lessons they need much earlier in life.

I also sent them the Peter Buffett article about how much he would have had had he just left his inheritance money with Berkshire. I remind them we are NOT Warren Buffett.

Now that my investments are on a regular schedule, it is amazing how little time one needs to spend on this stuff.

I still can’t believe that it is this simple and easy…

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