Neighbor Joe - Passive Income $1024/Year

On top of updating my monthly net worth, I am going to start tracking my annual passive income base on my current investment holdings. All my passive income currently comes from dividends. Currently, the market value of my investment is aprox $40,000 but my book value is around $30,000.

So here it is, I did up a quick excel spreadsheet with all the holding that pays dividends and calculated how much dividends I'll get every year. Right it's aprox. $1024 which translate to 3.4% of my total book value. Not all my investments are invested in a dividend paying stock so my return percentage is a little low.

If you are just starting on your journey I recommend you to start a tracker of your own. This will help motivate you to invest more as you see your passive income grows. Just by making this tracker I now know that I make an extra $1024 a year tax free. Although it might not seem like much at the moment, but that amount can almost pay for a small vacation every year. There you have it, here is my "make $1000 a year from sitting at home" scheme, which is probably more reliable then most "get rich quick by doing nothing" scheme. Invest and let your money work for you.

Warren Buffett: "The Bet"

Soruce: https://www.cheatsheet.com

I recently read an article on the financial post which I found really interesting. The article is about Warren Buffet about to win a bet he made 10 years ago. The bet, "Over a ten-year period commencing on January 1, 2008, and ending on December 31, 2017, the S&P 500 will outperform a portfolio of funds of hedge funds, when performance is measured on a basis net of fees, costs and expenses." He pretty much challenged all active fund manager that the market itself without any managing will outperform any active managed fund. 

From a lot of book I have read about investing, this seems to be the common message. They all say paying big bucks to have "smart" people mange your money will never give you as good of a return if you just invested into the market. Even if a fund manager can out perform the market, the commission he pays to broker, the tax he pay for gains, and on top of the cost for his time will diminish his strong return. This is one thing I want to emphasis when people are looking to invested into actively managed mutual funds, most time they don't show the return after accounting for all their expenses. Let say a fund advertise a 10% return, it might only actually be a 7% return when you calculate all their fees. 

Anyway, my thoughts are as follow, either invest in a passive index fund that tracks a market index or manage your own portfolio. In one my earlier post I gave some advice on how to get started. Invest wisely, but remember, wealth building is a slow process. Slowly but surely you'll get wealthy.  

Neighbour Joe - October 2017 Net Worth

Good day everyone, time for another monthly update. This month my only transaction is that I transferred $2000 into my investment account and invested into Hydro One. The reason I decided to invest into Hydro One is that they have recently purchased a US company and is looking to expand into the US market. Also their core business is power transmission which makes it a very stable investment since there will always be a requirement for power transmission. 

Asset 
Chequing: $4,832.05
Savings: $21,896.63
TFSA Investment: $40,516.61
TFSA Mutual Fund: $3,634.96 (Invested in TD e-series index fund)
Real Estate: $224,000 (Purchase Price of my house)
Define Benefit Work Pension (Current Transfer Value): ~$153,000 (Last checked in Jul 2017,aprox $1000 a month of contribution)

*Automobile is not included (No monthly car payment)
**Link to my investment portfolio as of 13 August 2017

Liabilities 
Mortgage: $149,785.57

*Credit Card is paid in full every month

Last Month Net Worth : $289,490

Current Net Worth: $298,094.69 (+2.9%)

My portfolio performed well this monthly which is the reason for the increase in net worth.