Investing

Couch potato investing for the last 12 years - tracking my progress

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  • Oct 19th, 2017 9:20 pm
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Sr. Member
Jun 15, 2012
778 posts
60 upvotes
MB
Germack wrote:
Sep 28th, 2017 8:36 pm
To be honest I don't like it. It is not diversified, 90% invested in small caps, very risky portfolio.
VSS Number of stocks 3507
IJR -602
---
Sir, when you say "risky" you mean more volatile if compared to large cap ?
Thanks
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
[OP]
Deal Addict
Oct 1, 2006
1655 posts
585 upvotes
Montreal
Yes, high volatility, high standard deviation of the historical returns --> high degree of risk. If you are able to stomach this high volatility I am sure you will do great over the long-term. It is just nothing for me. Good luck.
Member
Jan 18, 2014
341 posts
24 upvotes
Rouyn-Noranda
Germack wrote:
Sep 30th, 2017 3:37 pm
Yes, high volatility, high standard deviation of the historical returns --> high degree of risk. If you are able to stomach this high volatility I am sure you will do great over the long-term. It is just nothing for me. Good luck.
What about returns? Are they higher historically than for a large-cap or standard index like S&P 500?
[OP]
Deal Addict
Oct 1, 2006
1655 posts
585 upvotes
Montreal
John47 wrote:
Sep 30th, 2017 6:11 pm
What about returns? Are they higher historically than for a large-cap or standard index like S&P 500?
Yes, they were.

30-year percentage return:
US Small Stock Total Return Index: 11.1
U.S. Large Stock Total Return Index: 10.7
Balanced Portfolio (60% Equity, 40% fixed income): 10.7

Percentage returns since 1950:
US Small Stock Total Return Index: 13.4
U.S. Large Stock Total Return Index: 11.0
Balanced Portfolio (60% Equity, 40% fixed income): 9.7

Risk since 1950:
US Small Stock Total Return Index: 24.7
U.S. Large Stock Total Return Index: 17.5
Balanced Portfolio (60% Equity, 40% fixed income): 10.2
Newbie
Sep 18, 2017
23 posts
31 upvotes
Another couch potato here. $1,675,000 between the wife and I. 47 years old. 75/25 equities/bonds. Love the simplicity, low fees, no market timing, no trying to beat the market. I spent many years buying mutual funds and individual stocks. Realized there are many things I am good at but a KISS portfolio works best for me. Net worth now increasing at around $500k/year. Lots of assets outside of the portfolio.

Cheers!
Member
Jul 27, 2017
426 posts
98 upvotes
GTA
FUMONEY wrote:
Oct 3rd, 2017 4:36 pm
Another couch potato here. $1,675,000 between the wife and I. 47 years old. 75/25 equities/bonds. Love the simplicity, low fees, no market timing, no trying to beat the market. I spent many years buying mutual funds and individual stocks. Realized there are many things I am good at but a KISS portfolio works best for me. Net worth now increasing at around $500k/year. Lots of assets outside of the portfolio.

Cheers!
Brilliant, well done, congratulations.

Would you mind sharing some of the secrets to your success in building those assets....broad brush?
Newbie
Sep 18, 2017
23 posts
31 upvotes
porticoman wrote:
Oct 4th, 2017 1:25 pm
Brilliant, well done, congratulations.

Would you mind sharing some of the secrets to your success in building those assets....broad brush?
Thanks I just did that in another thread but to quote myself....

I have no university degree but have always loved money. Got into commission sales early and realized I was good at it (and had a very good work ethic even more important). Wife and I have always had similar goals. Both worked very hard to build lucrative careers. Read The Wealthy Barber in my early 20's and a lot of it stuck with me. Pay yourself first. Started maxing out my RRSP every year and avoiding debt. Wife and I both making six figures by late 20's. Avoided consumer debt, paid of the mortgage on current home in 5 years. TFSA came out we started maxing it January 1st every year. Had kids... $2,500 for each into RESP January 1st every year. Not all savings... have taken dozens of awesome vacations over the years, something always important to us. Now budget is $35k/year for vacations, just booked a nice resort for March break, $12k for the family and have another 11 day trip booked for November. Retirement will include snowbird winters and want to be able to fly my kids, spouses and grandkids hopefully one day down to see us whenever they want. I am making serious coin and I realize not realistic for all. I have been very lucky (and perhaps made my own luck).
Newbie
Sep 18, 2017
23 posts
31 upvotes
I should have added - have done well with numerous real estate transactions. Have bought a few crappy properties then renovated and sold for decent profits. This was many years ago, would not bother with that today but helped up build equity in our now long term home. I also love multiple income streams and not relying solely on employment income. Whether its a side gig, rental property, a hobby you can monetize, they all make it easier to get ahead.
Member
Jul 27, 2017
426 posts
98 upvotes
GTA
fumoney @ post # 1882 & 1883.....thanks & well done

Keep on posting to share your experience & tips
Newbie
Oct 29, 2015
18 posts
4 upvotes
FUMONEY wrote:
Oct 4th, 2017 2:11 pm
I should have added - have done well with numerous real estate transactions. Have bought a few crappy properties then renovated and sold for decent profits. This was many years ago, would not bother with that today but helped up build equity in our now long term home. I also love multiple income streams and not relying solely on employment income. Whether its a side gig, rental property, a hobby you can monetize, they all make it easier to get ahead.
Thank you for sharing. As a younger guy (21) still in university, your posts are very inspiring.

Quick question about your relationship. Were you and your wife on the same page regarding finances since day 1? Or was it something you had to work on?
Newbie
Sep 18, 2017
23 posts
31 upvotes
DecayHeat wrote:
Oct 5th, 2017 9:45 am
Thank you for sharing. As a younger guy (21) still in university, your posts are very inspiring.

Quick question about your relationship. Were you and your wife on the same page regarding finances since day 1? Or was it something you had to work on?
Always on the same page. Could count arguments about money in the last 15 years on two fingers. She is frugal by nature and despite significant income and net worth she uses coupons/price matches, dyes her own hair and maybe gets one haircut a year (I buzz my own, about a penny of electricity per cut lol), buys 99% of clothing from discount stores, etc. We use the local library extensively and have pretty cheap hobbies. We do spend a lot on higher end vacations, groceries (rarely look at prices in the grocery store) and have spent a lot on home renovations (instead of moving to a more expensive home). Neither one of us every hides a purchase. About once a year we each get some luxury item we've been coveting).

I have friends who lose sleep over shitty financial relationships with spouses. Heavy use of credit cards to buy thousands of dollars of Lulu Lemon and other designer clothes, $250 hair appointments etc. So the husbands feel justified to buy those new golf clubs, replace their car every 4 years etc. and its a downward spiral. Find yourself a hard working frugal wife. Or as a friends dad used to say, "Son its just as easy to marry a rich one as a poor one". Not so sure if that is true but I got lucky - GREAT wife and GREAT mom to our kids.
Newbie
Oct 29, 2015
18 posts
4 upvotes
FUMONEY wrote:
Oct 5th, 2017 10:07 am
Always on the same page. Could count arguments about money in the last 15 years on two fingers. She is frugal by nature and despite significant income and net worth she uses coupons/price matches, dyes her own hair and maybe gets one haircut a year (I buzz my own, about a penny of electricity per cut lol), buys 99% of clothing from discount stores, etc. We use the local library extensively and have pretty cheap hobbies. We do spend a lot on higher end vacations, groceries (rarely look at prices in the grocery store) and have spent a lot on home renovations (instead of moving to a more expensive home). Neither one of us every hides a purchase. About once a year we each get some luxury item we've been coveting).

I have friends who lose sleep over shitty financial relationships with spouses. Heavy use of credit cards to buy thousands of dollars of Lulu Lemon and other designer clothes, $250 hair appointments etc. So the husbands feel justified to buy those new golf clubs, replace their car every 4 years etc. and its a downward spiral. Find yourself a hard working frugal wife. Or as a friends dad used to say, "Son its just as easy to marry a rich one as a poor one". Not so sure if that is true but I got lucky - GREAT wife and GREAT mom to our kids.
Sounds like you have a keeper. Well done!
Member
User avatar
Oct 21, 2009
216 posts
29 upvotes
I am currently reading the whole thread. I'm on page 30 and have found it very useful so far.

Just curious, do you have a work pension? If yes, what kind?

thanks.
Deal Expert
User avatar
Sep 19, 2004
20121 posts
3039 upvotes
Waterloo
FUMONEY wrote:
Oct 3rd, 2017 4:36 pm
Another couch potato here. $1,675,000 between the wife and I. 47 years old. 75/25 equities/bonds. Love the simplicity, low fees, no market timing, no trying to beat the market. I spent many years buying mutual funds and individual stocks. Realized there are many things I am good at but a KISS portfolio works best for me. Net worth now increasing at around $500k/year. Lots of assets outside of the portfolio.

Cheers!
Net worth increasing $500K a year?????? not just from stocks right? b/c it takes $10M assets at 5% = $500K a year

Congrats regardless
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[OP]
Deal Addict
Oct 1, 2006
1655 posts
585 upvotes
Montreal
Bart_ wrote:
Oct 9th, 2017 8:59 pm
I am currently reading the whole thread. I'm on page 30 and have found it very useful so far.

Just curious, do you have a work pension? If yes, what kind?

thanks.
Unfortunately, I do not have a work pension.

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