We are now almost half way through 2015, and so far, it’s been mostly “slow and steady” as it pertains to overall portfolio growth. It does seem like the great bull run from 2009-present has mostly topped out, and any further gains from this point on are mostly incremental.
Nevertheless, we are going to keep at it, and as long as we stick to the plan, things should work out in the end. When it comes to my own strategy, I’m focusing mostly on defense and wealth preservation these days. I am not actively investing any new funds at this time, but I am still tracking and paying attention to the market’s movements. There will come another opportunity to heavily invest again; I am sure of it. Until then, patience is a virtue…
Let’s see how things are doing this month!
Here is where my Net Worth stands at the conclusion of May:
Here is a breakdown of assets:
Here is a breakdown of debts:
Cash and Credit Cards
I currently have $27,014.83 stashed away in my checking account ($7,942.11 previously). Cash increased greatly this month as I started liquidating my stock positions in my brokerage account. Upon transaction completion, I transferred a small portion of the proceeds back over to my primary checking account.
I owe $82.43 in credit card debt.
I have $75,990.12 hidden away for a rainy day, or for future investment opportunities. Similar to the checking account, the large increase in the emergency fund this month is attributed to heavy stock liquidation from my brokerage account.
I owe the following loans:
Rental Property #1: $324,771.26
Rental Property #2: $328,212.19
Rental Property #3: $114,564.71
Rental Property #5: $123,650.30
Rental Property #4 is owned outright and there is no loan associated with it.
Side Hustle Loans
Rental Property #SH 1 (25%): $387,490.33 ($96,872.58)
Rental Property #SH 2 (25%): $385,989.96 ($96,497.49)
Rental Property #SH 3 (50%): $404,495.45 ($202,247.73)
Total: $1,177,975.74 ($395,617.80)
My portion of the Side Hustle loans are accounted for above. My partnership stake in each property is shown in the ( ).
I currently own stocks in my taxable brokerage account. My other investments are in 401k and Roth IRA.
Current 401k: $4,948.80
Roth IRA: $61,418.90
As mentioned previously, I began liquidating my stock holdings this month in my brokerage account. What remains is a combination of cash (not transferred out) and a few stocks that I am still holding.
I have a call option on Toronto-Dominion Bank (TD) set to expire in mid-June. Upon expiration, I will liquidate all remaining shares.
I am currently “trading”: Union Pacific (UNP), Norfolk Southern (NSC), and Walmart (WMT). Since those 3 stocks are heavily in the RED at the moment, I’m going to sit tight and simply collect the dividends in the process… I’m treating those stocks as dividend growth stocks, which is just fine with me. No one said trading was easy… 😉
Alibaba (BABA) is still my largest individual position, but I will look towards liquidating this position over the next few months…
Here are the values of each property, based on my own estimate:
Rental Property #1: $460,000
Rental Property #2: $450,000
Rental Property #3: $157,500
Rental Property #4: $95,000
Rental Property #5: $180,000
For properties, I will refrain from updating the values each and every month. Instead, I will review and re-assess quarterly, to allow sufficient time for the market prices to stabilize.
My last re-assesment was March 2015. The next property assessment is scheduled for June 2015.
Side Hustle Properties
Rental Property Side Hustle #1 (25%): $520,000 ($130,000)
Rental Property Side Hustle #2 (25%): $560,000 ($140,000)
Rental Property Side Hustle #3 (50%): $490,000 ($245,000)
Total: $1,570,000.00 ($515,000.00)
My portion of the Side Hustle equity is accounted for above. My partnership stake in each property is shown in the ( ).
The total value of all assets now checks in at $2,223,692.26, an increase from last month ($2,207,380.33). I also owe $1,286,898.69.
Net Worth saw a slight increase this month, as the market mostly traded sideways. In any case, we are slowly itching closer to the coveted $1,000,000 mark and I anticipate getting there next month (baring any major market corrections)! 🙂
$1MM sure doesn’t buy what it used too… But I won’t deny that getting there will be a huge psychological victory in my eyes. This is something that I’ve been dreaming about since high school… I never thought it would have been possible to get there at age 30, but thanks to the Fed’s efforts, my investments have soared over these last few years (I’m sure everyone else feels the same way).
So, regardless if the gains are artificial (or not), it’ll feel good to be able to cross this item off on the bucket list. With that said, building massive wealth has never been my primary objective in life — financial freedom is.
As long as we can keep making progress in the freedom department, that’s all that we can really ask for. These days, I’m just trying to do my best to protect the wealth that I’ve worked so hard to build up over the last 3 years.
It’s not easy shifting over to a defensive-minded philosophy after spending so much time and effort formulating an offensive gameplan… But I feel like the gravitation towards defense is absolutely necessary for me, especially given the current scortching-HOT market environment we are operating in.
What goes UP must come back DOWN, and I’m doing everything that I can to brace myself for impact.
2015 Net Worth Summary:
May 2015: $936,793.57
2014 Net Worth Summary:
2013 Net Worth Summary: