Sunday, 24 January 2016

Back in the Game

Well, I'm back.

I had to put this blog on hiatus (and ultimately delete the old contents) due to a change of employment that saw me enter financial services. I loved doing what I was doing, but ultimately I decided to leave. I found that while I loved the work, and the prospect of helping people in their financial goals and dreams, the reality of people WANTING to make bad financial decisions for immediate gratification was draining. I thought I would be helping people, and instead more often than not I was watching them happily self destruct their financial futures.

So I moved on to something else.

The upside is, I get to return to something I genuinely loved doing and missed...blogging about finances, and hopefully learning a few new things along the way.

I decided when I came back that I wouldn't change much about the formula that had been working for me...why should I?

So here I am, and why not dive right in since we're still in the first month of the year?

Early retirement always has been and always will remain the goal. To do that, there are a few things that I need to achieve with the Neu Grufti Portfolio.

Primary Goal: Dividend Growth

Neu Grufti is based on the idea that whatever else happens, like spice, the dividends must flow. Every year needs to see a growth in dividend income. In an ideal world, dividend income alone will provide for retirement, but even if that isn't possible, it must show ever increase improvement.

Currently, my annual dividends for 2016 will amount to $2978.10
The goal is to see that grow to $45,000 by 2038 (22 years).

How to do that? It sounds difficult, but if I can capture 15% (average) dividend growth per year, I can actually hit that goal by 2035. So really, my goal is 12% per year (average), with a stretch goal of 15%. So while the goal for 2016 is $2978.10, the goal for 2017 is between $3335.36 and $3424.70.

Secondary Goal: Beat Inflation

The secondary goal is to beat inflation. If your investments don't outpace inflation, you're losing money. If they outpace inflation, you're making money. It's straightforward, and unless you keep your money under a mattress, in a coffee can, or these days in a regular savings account, you should be able to beat inflation. While simple on the surface, it's the second most important goal because it determines whether or not you'll actually be able to afford to retire or if you're falling behind on the lifestyle you want.

Final Goal: Beat the Indexes

While not as important for retiring, it's important to measure yourself against some simple goals. The TSX (Canada), the Dow Jones (US) and the S&P 500 (US) are the three markets I measure myself against, because if I can't beat them, I may as well just invest in index funds and be done with it.

I originally wanted to provide my results of the last 5 years (and for the record, it's been 5 up years), but on thinking about things, I decided I want to start from a clean slate.

So, without further ado, I present the holdings (and YTD performance) of the Neu Grufti Portfolio.


Speculative Growth (-3.81%)
Canopy Growth Corporation (TSXV:CGC): -8.75%
Organigram (TSXV:OGI): -15.96%
Prairie Sky Royalty (TSX:PSK): -13.15%
Sherritt International (TSX:S): -1.37%
Superior Plus Corp (TSX:SPB): -4.16%
TELUS (TSX:T): -0.69%

Long Term Growth Canadian (-1.27%)
Alliance Grain Traders (TSX:AGT): +9%
Brookfield Renewable Energy (TSX:BEP.UN): -3.5%
Canadian Apartment Properties REIT (TSX:CAR.UN): +8.72%
Capital Power Corp (TSX:CPX): -0.06%
Corby Spirit and Wine (TSX:CSW.A): -2.75%
Innergex Renewable Energy (TSX:INE): -2.4%
RBC Global Corporate Bond Fund (RBF1009): -0.55%
Surge Energy (TSX:SGY): -14.07%
TD Monthly Income Fund (TDB622): -4.25%

Long Term Growth US (-0.15%)
Alcoa (NYSE:AA): -2.19%
Investors Bancorp (NASDAQ:ISBC): -7.48%
Microsoft (NASDAQ:MSFT): -5.85%
Nordic American Offshore (NYSE:NAO): -21.44%
Realty Income Corp (NYSE:O): +5.33%
Unilever (NYSE:UL): -1.93%
Verizon (NYSE: VZ): +1.02%

Canadian Retirement (-3.49%)
Anglo  Pacific (TSX:APY): +0.0%
Alterra Power (TSX:AXY): -4.32%
Boralex Inc (TSX:BLX): +3.98%
Chartwell Senior Housing REIT (TSX:CSH.UN): -1.65%
Dream Global REIT (TSX:DRG.UN): -5.33%
Methanex (TSX:MX): -10.48%
RBC 1-5 Year Laddered Bond (TSX:RBO): -0.91%
Rogers Sugar income Fund (TSX:RSI): -1.66%
Royal Bank (TSX:RY): +21.09% *

*Royal Bank is a bit of an outlier, I have a tremendous return since I cashed out my company shares when I left RBC, and this was the gain I achieved on those shares when I moved them into my own retirement account

US Retirement (-5.79%)
Johnson & Johnson (NYSE:JNJ): -5.69%
Dow Chemical (NYSE:DOW): -6.14%

Tax Free Income (-0.16%)
RBC US Monthly Income Fund (RBF1503): -0.16%

There's a lot of red up there, but so far in January, the market has taken a massive hit, so that's not really something that's terribly surprising. I'm not really judging my portfolio by the first few weeks of January, although I'm managing to stay ahead of the worst losses on the market. We'll see how things end the month.

I'll also be going over these categories and their holdings over the new few days, to go more in depth over why they are set up the way they are.

Welcome back!

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