Recent Sell – Seg Funds

As part of my new(ish) employment changes, I was offered a retirement matching plan. The catch was that I had to choose from a pool of segregated funds offered by an insurance company. These funds come with high management fees but in order to not leave money on the table, I decided to make regular contributions. I originally documented this in this post.

Once a year, I am given a freebie to withdraw funds and move them to my other self-directed retirement accounts, and I decided this was as good a time as any. I sold my positions in the following two funds. Going forward I will be repeating this move each January, so that my overall expenses fees remain low.

  • US Equity Index Seg Fund
  • International Equity Seg Fund

I will continue taking advantage of this benefit from my work and regular contributions into these funds will continue as usual on a monthly basis.

Full disclosure: Our full list of holdings are available here.

Goals for 2017

A new year and new set of goals/target to set. Lately, I’ve been dwelling on goals to set — not just financial but also personal and professional goals. To make steady progress on a regular basis requires determination, patience and of course a target in mind. Setting and writing down goals and working towards them are one of the best ways to make progress. As far as financial goals go, the long term goal still remains the same — achieve financial independence that will provide us with more freedom to do what we want out of life. Following are the goals that I am setting for 2017.

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Annual Update – 2016 Review

Welcome to the annual 2016 update. This is part of  a series where I track our financial progress on a regular basis. I present four parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, (iii) Blog Update, and (iv) Goals Update.

1. Investment & Portfolio Update

2016 saw a big change in direction of my overall portfolio. I decided to cut the number of individual stocks I own as life has gotten busier both personally and professionally. In addition, the current economic environment does not give me a lot of confidence to stay fully invested and decided to move to a cash-heavy position over the summer.
On an ongoing basis, I continue to invest in index funds regularly, which gives me broad market exposure and is currently on “cruise-control”. I have a smaller set of companies that I focus on and make bigger bets on each instead of spreading myself too thin by investing in 40, 50, or 100 companies. Studies have shown that the Unique risks drops substantially by owning as little as 12 stocks. To be on the safer side, I want to focus on a approximately 20 companies and invest in those stocks instead. I have discussed more about this topic in the past — see this post. As a result, you will notice a lot of sales in the following image.
I present the following image which summarizes all the purchases (excluding the regular ETF/seg fund purchases which occur regularly on a monthly basis), all the sales, and all dividend increases in my portfolio.

Companies listed without any activity during the year mean that we did not add or remove these positions in our portfolio, nor did those companies have any change in dividend policy. These investments remain dormant in our portfolio.

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Correction – Passive Income Update

Quick update as I missed out in including my segregated fund dividend income in the recent income report.

As part of my new work compensation, I have a sponsored retirement (RRSP) program and the only options available were seg funds. I initially wrote about it here and I contribute regularly as I do not want to leave money on the table, even though the funds are expensive. Turns out that the plan administrator does not disclose all info on their site and I had to go looking into the detailed statements to get this info when I realized that I hadn’t seen any income reported on the main page. Instead of going back to each quarter, I have simply added it to the December income and updated the charts below.

Total dividend income from the seg funds in 2016: $316.84

As a result, I have now happily achieved our 2016 goal of earning $9K in passive income 🙂 Passive income for 2016 now totals $9,099.70.

Updated charts are presented below.

 

Disclosure: Our full list of holdings is available here.

 

Passive Income Update – Dec 2016

Welcome to our monthly passive income update for December 2016. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month.

Passive Income  Update

Passive income for the month of December 2016 was C$1,112.60. The passive income for the month comprised of US$493.13 and C$451.81 (exchange rate is US$1 = C$1.34).

Passive income change is 68.5% QoQ and 21.6% YoY for the month. The passive income for 2016 ends up at a grand total of $8,782.86, which ends up just short of our annual goal of earning $9K.

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