Case study: My 401 K and IRA performance vs Vanguard total market index VTI ETF

April 28, 2019

Introduction

It is my personal finance research. I like to do a case study of my 401 K compared to VTI ETF performance.

Case study

Let me put all my deposit of 401 K into github for me to look up first.

I just could not believe that I have not done any research on 401 K portfolio research starting from 2002 to 2019. It is over two decades. I just could not believe that I have such difficulty to learn new thing on investment.

My 401 K and IRA managed by myself

Here are blogs by searching IRA CD on my blog. I put my IRA CD staying with New York community bank from 2006 to 2019, here is the blog.

1999 Atlantic Entertainment   $1880
2000 Atlantic Entertainment   $3610
2000 Trendium                         $650
2001 Trendium                       $5490
2004 IRA deposit                   $3000
2006-2007 Siva, par siva       $8000

I experienced two recession, 2002 and 2008. And I decided to pull all funds out of stock market in 2009. I just could not believe that my decision and I could not explain myself the behavior.

Facts:

1. I do not actively learn how to invest. I do not study my 401 K Par technology Charles Schwab account, I do not even know what funds are available for 401 K investor after 2009.

2. I do not pay attention to stock market, and I do not do any study on my 401 K fund performance at all from 2010 to 2019.

3. I do not question myself the way I manage the asset I have.

And VTI ETF performance is unbelievable.

Homeowners who just walk away

Dec. 30, 2018

Introduction

It is tough time for me to admit that I cannot make money to afford my own housing in Vancouver area, so I am glad to rent instead of owning any real estate in Canada. I am planning to find a remote small city to live somewhere in Canada in the future if I plan to make a purchase of home. One thing is to read some article about home owners and how they make decision back in 2009.

Research helps me to understand more

Here is the article I choose to read.

Case study: Western union money transfer history

Dec. 23, 2018

Introduction

I made so many mistakes in early 2000, I spent six thousands dollars to pay for a home for my late mom; and then later I paid over thousands for her trips to USA and other travelling cost in her early 70s. I like to do a case study since it is time for me to learn from my mistakes and things I have to learn.

Case study

I did not do booking every year. I do believe that if I work hard, then money will follow. But it does not work very well. Recently I started to dedicate my time to do personal finance research. It is my first time to read those transaction history through my scotiabank history of transfer.

I like to look into this issues. I think that one of things I have to push myself is to learn to negotiate, and learn to find alternative ways, and build relationship with local banks, and do business through investment. West union is an easy way but I never learn anything through those hard earn money.

What I should do is to invest some money and create win win solution for me and also my mom. Maybe I can purchase a home and use me and my mom's name both in 2010. At that time, my sister paid a 2000 square foot only with $100,000 Chinese yuan, she paid $100,000 yuan to put everything inside the unit, a few years ago she sold for 100% profit. She invited my young sister to purchase one in the same community.

Another thing is that I should review my income and expenses every year. And also I need to try to get relationship with other siblings as well, compare notes, exchange my bank transaction to other siblings, make it public, and share the lessons I learn all the time. I have a sister who is a college teacher, who is good at investing on stock trading; a physician and a middle school teacher.

I have to handle 2018 project, I paid over $4000 Canadian dollars, I tried to show my effort to push to collect the payment. I looked up the internet and found those transactions to share the payment, since I was pushed to pay by my siblings before.

I tried to reveal what I did to other siblings since I paid to my mom through one of siblings to my mom. I paid cash $5,000 yuan if I did not use western union transfer. I spent over $4,000 Canadian dollars for two vacation each time in 2012 and 2014.

I do not try to solve my own problem in the city of Vancouver near 10 years, but I tried to pay all the expenses for entertainment purpose. That is not acceptable for me to review and audit those expenses.

Actionable Items

I spent time from 2010 to 2018 working full time, but I found out that there are some issues related to my savings. I think that most important is to stay financial independent, and also be able to stay emotional independent. Do not mix money with emotions.

Personal finance is so tough game to play. My sister kept telling me that you are a Christian, if you pay the relative's bill, you will go to heaven. I just show the facts to her, how much I paid through years. This is the first time I reviewed my transaction history with her first time. I learned the lesson to share early, build relationship with other siblings.

To learn person finance, it is time for me to push myself hard to review, audit, and learn how to solve my problems in terms of problem solving, working with people, and do the right thing right time.

Follow up 

July 27, 2022

I like to review the blog and write down my understanding of my financial history. 

What if I purchase a home in every city I work?

Dec. 4, 2018

Introduction

It is a good research topic called purchase a home every city I work or live. I lived in the city of Yichun, jiangxi province, Shanghai city, Boca Raton in Florida, Vancouver in Canada. What if I purchase a home in every city I live. How can I possible do that? How to do that if possible.

My research and case study 

I already owned a home in the city of Boca Raton, in 2017, after I purchased in 1999, I paid it off with $25,000 home equity line debt. I had to take loss to purchase US dollars over $22,000 Canadian dollars with rate 0.80.

I also paid for a home as a gift to my mom in the city of Yichun in year 2000, I paid every thing with extra to do internal simple decoration, my mom passed away in November 2017, based on my sister who made purchase, I may own 1/12 share. I am a Christian, and I do not want to get into any dispute since I learn from bible teaching. Also I like to learn how the money doubles value if I gives away, but I spent 10 times more and then ended up nothing left. I want to learn.

I did not purchase a home in the city of Yichun. I paid for one but it is a gift but I did not own it.

It is tough for me to review those financial records of expenses and I did not learn to adapt from 1999 to 2001. Personal finance is not tough to learn and get idea how to live under mean.

Now the topic is how I can purchase a home in the city of Vancouver and Shanghai. How can I do it?

If I learn the money game, and also I work very hard, do not purchase brand new car; keep my old car in Florida. I rent out the second bedroom, do not invite my mom to visit me in Florida; work very hard to save every dollar. I should be able to save $40,000 US dollars from 1999 to 2001. I should be able to purchase a home in Shanghai using $300,000 Chinese Yuan/ 1000 square foot using cash, US dollar $40,000 dollars. But in reality, I was never able to save more than $20,000 dollars and had ideas how to spend the savings from 1999 to 2001.

City of Shanghai

I have so many classmates of SJTU undergraduate and graduate owning home in Shanghai. I worked in the city of Shanghai from 1988 to 1989, and then I went back to work from 1992 to 1994, and changed a job to work from 1994 to 1996. When I left Shanghai, I had $8,000 Chinese dollars, after I purchased expensive airline ticket, I only had less than $1000 dollars left and I was lucky to have scholarship from Math department of FAU. I asked my friend and she asked her boss lady to provide a bank letter to help me to show $3,000 US dollar to cover living expenses back in 1996.

Based on the fact that my finance data in 1996, I did not have chance to purchase a home in the city of Shanghai when I left Shanghai. At that time, the home price is $3000/ square meters.

Technically I could not get a loan since I do not have enough down payment around $60,000 RMB. I changed the job and the two years salary in total is $28, 000 RMB from 1994 to 1996.

City of Boca Raton

I got a computer science master degree in 1988 in Florida. I worked full time from 1998 to 2001 and made over $100,000 net income. I made two purchase of home, one condo in the city of Boca Raton, one is in the city of Yichun, Jiangxi province, China.

I did very good job to purchase the condo in the city of Boca Raton in 1999 when the market price is lowest.

I did not learn how money works, and also I did not learn how hard it will be if I like to exceed my full time job in a startup from 2000 to 2001.

I called it a big check syndrome, lessons I learned from my own experience. I wrote a blog on this.

City of Vancouver

I landed in Canada in 2010. I will write down something here. I should be able to get a loan to purchase a condo in the city of Surrey from 2010 to 2015. I need to work hard and be proactive.

Big check syndrome

Dec. 4, 2018

Introduction

It is the term I learned from "The 20 rules of money" 21:22 - 23:00/ 25:27. I like to apply one of rules big check syndrome to my case study: Personal finance analysis from 1999 to 2001, since I found out that over $100,000 net income from 1999 to 2001 is gone. Nothing left when I left USA to immigrate to Canada in 2010. It is best example to explain called big check syndrome.

Nothing left

It is true that nothing left for those $100,000 US dollars from 1999 to 2001. I only had the gift to my mom a condo and now its market value over $100,000 US dollars. My mom passed away last year, but I did not own anything based on the paper work. As a Christian, I also learn not to argue with my siblings if there is any dispute.

22:34/25:27

Would you rather give you a half million dollars or would you rather take an income stream, guaranteed, $100,000 over 20 years.

Let me tell you why the $100,000 allows you to do more. 22:58/25:27

23:05/25:27
See, this gives me the opportunity to have a stronger backing to make bigger decisions to get bigger doubles.

It's irrelevant if you don't know how to play the money game.
23:25
This [income] is a very, very important game, so don't get too crazy about big check syndrome. And all of a sudden fall for it and lose everything that you got because it can totally mess up your net worth and you work all the way back to your double.

The 20 rules of money, here is the article link with more detail.

My personal finance struggle

Dec. 4, 2018

Introduction

It is one of my research area called personal finance. If I can handle very well my finance, then I will have more confidence to handle better on my career as a software programmer.

Mistakes after mistakes

It takes some discipline to learn how to save money. I did my personal finance review, I spent over $4500 Canadian dollar on one month trip in 2012. I am single, all I can do is to purchase an airline ticket and then that is all. Minimal life style.

I did the totally opposite. I did not learn how to say no. How to budget and how to negotiate with relatives, siblings, and seriously deal with relationship with people.

I own nothing in the city of Yichun and I do not own any property in British Columbia area as well. It is more challenging for me to solve problems compared to year 2001 and year 2010.

One thing I like to do is to write about personal finance, and also I have to push myself learn some basics. If I can prepare very well, then when the market went down in 2008, instead I closed all accounts, sell all stocks and mutual funds in 2009, I will carefully consider and use all money to purchase Microsoft stock with $20.00 dollars a share. Since I learn that there is a few ways to double money, one is to buy stocks, good company stocks on bear market.

Never too late

I start to document all purchases, and I like to document my personal finance and see how I can grow from a seed in Canada and have some wealth and asset one day.


Wealth, like a tree, grows from a tiny seed
the richest man in Babylon, Georges Clason

Case study: three exchange transactions

Dec. 2, 2018

Introduction

It is hard to read my sales data. I did make mistakes to buy high and sell low in Canadian dollars from 2010 to 2017. I need to come out the idea to cover the loss, one idea is to buy low if I have US dollars in short future

Three transactions

It is a good idea to write blogs related to personal finance, and then I can train and learn how to improve my problem solving skills. I had issues since I did not make any purchase of a condo from 2010 to 2015 before condo price went up. I think that the problem is that I do not document and learn from small projects in my life first. The idea to fix and learn is to start from a vacation, rental car, buy or sell Canadian dollars  small projects first to improve my analysis.

Here are the facts:

2010 April 23, I purchased Canadian dollars using $17,000 us dollars. At that time, one US dollar can get 0.98 cents. Usually I can get better rate not from bank. Here is the blog.

2017 August, I purchase US dollars using Canadian dollars 12,000 dollars, one Canadian dollar exchanges 0.78 US dollars. Here is the blog.
2017 Sept, I purchase us dollars using Canadian dollars 10,000 dollars, 0.80. Here is the blog.

So I purchased Canadian dollar with high cost, and purchase with high cost. The difference of each transaction can add up to 4000 dollars.

I need to purchase Canadian dollars in 2010 multiple times, and learn the market and get ideas. Only purchase if I need. When I need to purchase, plan early, study Canadian economy and understand oil industry of Canada.

Analysis

What I did is to purchase high and sell low. And the purchase of Canadian dollars costed me more in 2010 when the price is highest one. And I purchased US dollars when Canadian dollars is lowest time in 2017.

Actionable Items

I break the money rules, buy low and sell high. I need to purchase some Canadian dollars if I have US dollars to cover my loss.

2010 April 23
US dollars $17,000 -> $15,000 Canadian dollars, exchange rate 0.98

2017 August
Canadian dollar $12,000 -> $9400 US dollars

2017 Sept 5
Canadian dollar $10,000 -> $8019 US dollars

I purchased high to get Canadian dollars in 2010, and I sold low in 2017 low price Canadian dollars.

I should prevent this happen long time ago. I should spend time to study Canadian economy, if I can work on weekend 1,000 hours, each hour study I can save $7.00 dollars on those three transaction. In total I can save $7,000 dollars in loss.

Case study: 2010 April 23 $17000 US dollar exchange

Dec. 2, 2018

Introduction

It is time for me to work hard on personal finance. I have not learned how to be an investor in Vancouver area, I did not purchase a condo from 2010 to 2015 before the price double and double. I learn that in order for me to get smart on investment, proactive, I have to start from small project, and figure out how to make or save money through each transaction over $200 dollar, analyze them and ask why, what to learn, how to reduce risk to make mistakes. I need to case study those transaction, and then I can figure out what to do next.

Case study

I landed in Canada in 2010 April 23, I drove with my friend starting from April 10 and then landed in Canada. I made a purchase $17,000 dollars in one transaction one day.

Analysis of my transaction

I used us dollars $17,000 to get $15280 Canadian dollars. I did not hold on the transaction, open a US dollar saving account first, and then find alternative to purchase Canadian dollars. I should spend some time to do research on US dollar to Canadian dollars. 

Based on the transaction, I think that I need to bring into at least three options when I made big finance decision. 

A few ideas I should try. Break into the purchase from one time deal into six deals, $2,000 dollars a time and then learn how to get better deal, learn from the experience itself. I can talk to bank clerk every time and then get the tips and learn how to bank in Canada better. 

If I make a big purchase too quick and do not do enough home work, then I will have to learn how to catch up. Just tell myself hold on, let me think about more. 

At that time, I should work on anything making difference more than $100 dollars. I do not have job waiting for me. I need to spend time to figure out things by myself. 

Case study: moving violation driving ticket

Dec. 2, 2018

Introduction

I got a driving ticket in 2014. I took it very seriously, since I got two violations in 2010, and the police officer gave me the chance, took my excuse. But in a few years, I got another ticket, I knew that it was very serious. I spent one month to read driver license book, page by page, paragraph by paragraph, I tried to understand the basics. I also plan to review the book every year, I put into my office to make sure that I will read the book in lunch time if need.

Personal finance month

I did choose to pay the ticket right away. I learned that it is not good practice to argue. I need to take seriously and learn the driving rules, try to remember one by one. In 2017, I had a car accident, one car hit me from behind, and he hit and run. He told me that let me catch the bus, it was bus's fault, I did not even have time to look at his driver license number. It happened in less than two minutes, the hit and run whole process. I did not even have time to step outside the car, the big truck ran away.

So I like to do case study of driving ticket in 2014. I had personal finance month, I came cross the driving ticket, and then I skipped the document. And I just like to share and document my case study on this ticket.

My auto maintenance

Dec. 1, 2018

Introduction

I owned a used car starting from December 2014, and I like to review my maintenance cost. It is time for me to train myself to work on detail in terms of payment, how to reduce the cost and live on minimum.

Case study 

I made purchase in 2014, and then first maintenance costed me $900 dollars eight months after the purchase. So I stopped to visit the auto shop, I had to cut my expenses since I could not afford it.

One is to drive less, and the other one is to understand what is need for the car. Every year I only drive less than 3000 KM, I just drive local highways.

Financial data to maintain the car

How to maintain the car every year? I paid $5500 for a 2001 Honda Accord with 148,000 KM in Dec. 2014.

Here are some maintenance I did after the purchase.

1. 2015 August $900 auto maintenance on car dealership. (cost too much for 3000 KM driving)
2. 2016              $500 auto maintenance
3. 2017 car accident, over $2700 repair by auto insurance (Need to find statement)
3. 2018 $50 oil change

I like to review what I have done in terms of maintenance. In order to train myself smart on living, I need to study things related to auto maintenance.

6/13/2016
Oil change
Brake fluid flush             $100
Transmission fluid flush $199

I wrote a blog called my office to show how I learn to put a backup tire to get tire repaired on tireplus.com.

10221 133A street, Surrey

Nov. 24, 2018

Introduction

It is a good idea to write down the address, so I can recall the learning experience from a Chinese friend. I learn from her about hard work and also business mindset. She is so brave and she shared her investment experience on this one bedroom condo near SFU.

A story to tell

It is so interesting to learn from Chinese Canadians. They are so hard working and they survive so quickly as strong business mindset.

Case study my Boca Raton condo last 10 year property value

Nov. 23, 2018

Introduction

It is time for me to learn how market goes up and down. I like to study my condo in Florida last 10 years property value, and I also like to look into those data and teach myself how to read the value and come out some conclusion for life decision.

Case study

First I like to show the condo last 10 years market value, assessment value, and property tax.

My baby step thinking 

I was so busy the first nine years in Canada, but I did not pay attention to learn that I need to watch the market, get into real estate market in the province of British Columbia.

I know that I was busy every year. But last 10 years I paid property tax in November. I always tried and did pay property tax in full and get 3% discount. But I never thought about that the market also showed me what to get into the market of house in Canada.

Based on the above data, I should get into house market in British Columbia in 2011 and 2012. The market is lowest in last 10 years.

Right now, if I purchase a condo in British Columbia area, and I am busy and no time to look into the Canada market, but based on my property value, I know that I must have to pay double price compared to 2011 or 2012.

2010 - the price goes down 14% from $63,000 to $54,000
2011 - the price goes down 11% from $54,000 to $48,000
2012 - the price stays same  0%  stay  $48,000
2013 - the price goes up      25% from $48,000 to $60,000
2014 - the price goes up      20% from $60,000 to $72,000
2015 - the price goes up      24% from $72,000 to $89,000
2016 - the price goes up        1% from $89,000 to $90,000 
2017 - the price goes up     3.3% from $89,000 to $90,000                       

Based on my analysis, I should start to look into those market value, and I should time the market and get into Vancouver house market in 2012 and 2013.

I was so busy with hiking, church small group activities, enjoy the food and vacation. I have to forgive myself. I never did this kind of analysis as a home owner starting from 1999.

I spent over 20 minutes to put together nice image and like to teach myself to read and learn.

Also it is very important to invest the cheapest condo as possible to reduce the risk. Investment has risk. Chilliwack condo is the perfect place to invest, but unfortunately I did not know how many cities we have here in British Columbia until last three months. So in order to be a good investor, the person should also be very educated and get familiar with the community, neighborhood cities.

I made a 22 trips to Bellingham cities to do shopping over years from 2010 to 2016. Through the analysis of my activities, I should spend time to visit Chilliwack cities, Langley and Abbotsford instead.

Reference:

1. Palm beach property appraiser, the link is here.

Home equity loan account

Nov. 10, 2018

Introduction

It is most rewarding experience to own a home 19 years in the city of Boca Raton, Florida. I like to write down my experience as a small condo owner, and I learn how to treat myself better next time if I have the similar investment opportunity.

My ups and downs

I did make so many mistakes in those years. I bought full price retail price $2,000 black leather sofa for my condo in 1999, another two pieces of clothing sofa $700 us dollars for the condo in 2001. And then I spent $30.00 dollars to get rid of second two pieces of clothing sofa around 2013.

My home equity loan account is such a great school for me to go over those debts, interest to pay, and all lessons I learn as an owner, a landlord, and an alumni of Florida Atlantic university.

It is time for me to give some presentations and show us how to get good management of a small account. Most of important is to learn how to use the resource I have, and help myself to settle down in Canada, and understand how the city develops, and embrace the challenge of big urban city life in British Columbia.

Here are blogs I wrote for home equity loan account.

2008
2009
2014
2017