ataraxia's Net Worth for March 2019

Assets Value Change ($) Change (%)
Cash $478,194 $21,594 4.73%
Stocks $2,261,425 $305,425 15.61%
Bonds $2,922,055 $984,055 50.78%
Annuities $0 - -
Retirement $0 - -
Home $891,000 - -
Other Real Estate $0 - -
Cars $0 - -
Personal Property $0 - -
Other Assets $0 - -
$6,552,674 $1,311,074 25.01%
Debts Value Change ($) Change (%)
Home Mortgage(s) $0 - -
Other Mortgage(s) $0 - -
Student Loans $0 - -
Credit Cards $6,791 ($25,851) (79.20%)
Car Loans $0 - -
Other Debts $3,589,932 $1,274,932 55.07%
Total Debts $3,596,723 $1,249,081 53.21%
Net Worth $2,955,951 $61,993 2.14%
*All values shown in USD ($)
I'm not sure if I categorized things correctly, I have a 1 month time deposit of 250,000 categorized as cash for this entry. It was offered at a promotional 5% Annualized rate due to a bond subscription I made. You can see that my bond category is higher along with my "other debts".

Another promotional spread was ending that would allow me to lock in a spread against the 1 month interbank offer rate that meant that I could borrow at about 1.33% vs 2.5%, and invest in investment grade bonds of a ~6 year maturity yielding ~4%.Net effect of the leverage is a yield of ~11% net of interest expense.This means that based on dividends and bond coupon income (They were all roughly at par) passive income of around. 120,000 a year.

I've also broken out stocks and liabilities a bit as in my February post, i simply entered liquidation value for stocks when in fact it's some amount of stocks on margin. So increased the value of the stocks while adding the margin amount onto "other debts".

In terms of the net gain of 61,993 over last month. Was virtually all due to stock performance. I actually took a big hit on the bond subscription in terms of paying for the spread (I think the bank was offering the 5% time deposit and the 1.33% financing package so as to get you to purchase bonds on their platform where the spread is something ridiculous, like 2% between bid/ask). So when I bought a bond at the ask of say 101, when it shows up in my account, it's marked at bid of maybe 99, so that's where I took a big hit. Additionally, there's all the accrued interest I had to pay that wont show up in the bond value.

I feel like I'm finally at a point where I'm satisfied with just turning a blind eye to my asset allocation. The income generated was something I was targeting as I venture off into starting a new business and no longer draw a salary.

For my age, I realize it's quite fixed income heavy, but that being said, because of the high risk approach I'm taking with my career, I feel it balances out overall. There is obviously also the fact that it's a levered fixed income portfolio adding back some of that risk.


3/5/2019 11:51:40 AM gmt
You're wiser than you know. Look up and read: You Should Only Have to Get Rich Once: How to Avoid Toxic Financial Advice and Focus on What Really Matters by Russell E. Holcombe
3/6/2019 6:17:34 AM ataraxia
Thanks! I tried googling it, seems a little hard to find a summary or outline though. I am noting though that it is one of your favourite books on your profile. I've gotten pretty leery of advisors though if that's whats suggesting. I've definitely been churned over commission products to have become pretty skeptical.
3/6/2019 4:15:59 PM gmt
Just the opposite. The book addresses concepts of psychology, financial advice/marketing, and risk. It's especially for people who want to avoid taking unnecessary risks.
3/11/2019 1:14:11 PM 30sballarddad
Everything in finance is a simple trade-off between risk and return. Knowing somethings return (or potential return) is the easy part. Knowing what risks you are actually taking is the difficult part.