Are you ready for 2024? I think 2024 will Be A Great Year to Grow Your Wealth! Hey everyone, hope you like the new look of the website. I think there will be lots of great opportunities to buy stocks on sale. I think even real estate could still go down more. If Central Banks go back to easy money then that’ll surely boost all asset prices. Depressed asset prices offers us investors opportunities buy low and grow our wealth and passive income. And that’s what I’m focused on this year.
I’ve been reviewing our year end financial progress and I can’t believe we earned over $32k in passive investment income in 2023! I have to say that having interest rates in the 5% range were a big help. In fact, the interest paid to us accounted for just over 1/3 of that income.
With money market funds yielding around 5% this gives us the ability to sit on the sidelines and not chase yields. Prior to 2020, interest rates were about 0.1 % on those funds so everyone was chasing dividend stocks for income. This pushed everyone out on the risk curve. Retirees were forced to hold dividend stocks instead of a lot of cash. Now for those looking to diversify their investments can, once more, allocate a portion to cash and equivalents bucket.
Speaking of dividend stocks, I was amazed to see a bunch of pipeline and telcos yielding 7% to 9% back in October. Those yields have since come down, but I was able to scoop some up. Again, I think any sort of sell off in the market will offer investors more opportunities to scoop up some high yielders like BCE and Enbridge. If we get some rate cuts, that will boost their share prices too. So overall, there’s some decent opportunities currently, but we’ll likely see better ones in Spring.
Canada’s real estate market has once again muddled through a tough year. I read that about 60% of mortgages come up for renewal in 2024-2025 so policy makers will likely want rates to come down before we find ourselves in a massive household debt crisis. If we do see a big drop in home prices, foreclosures and all the rest, then it might be a great buying opportunity for those looking for a home or investment property.
2024 Goals
This year I have 2 major family finance goals. First, I want to increase our passive income to $40k. Second, I want to grow our net worth pass $2 Million. Last year we managed to increase our net worth by about $133k, so I think both goals are achievable if we keep saving and investing while remaining debt free. I am a little bit concerned about what an economic downturn could do to our plan, but I think we have enough “safe” assets that we’ll likely not suffer the full brunt of it.
That’s my plan for 2024, what’s yours? Tell us in the comments below.
Save, Invest, Build Wealth and Prosper
In case you’re wondering here’s where we park our money and some financial services that we use (please note these are affiliate links where we receive small compensation for signups and sales):
For our precious metals and coin capsules, we use Silver Gold Bull because they price match and offer fast, insured, delivery.
We also own some crypto currencies like Bitcoin and Ether through Shakepay. If you’re interested in buying some here is our referral link to Shakepay and get $10 to try it out. We buy Bitcoin on Shakepay and transfer it to a Ledger cold storage wallet to keep our crypto secure.
For our Daily banking we use Tangerine because they offer incredible products and no-fee banking.
For investing we use a combination of TD Waterhouse (for legacy investments) and Questrade because it offers incredible value with low cost stock purchases and free ETF purchases. If you haven’t done so already, check out my Questrade Review to see why it’s the best deal around. Get $50 in Free Trades when you signup for Questrade through this link.
Please note: this page contains affiliate links. As an affiliate, this blog receives a commission for each sign up for Tangerine, Shakepay, Borrowell, Questrade, Amazon, Silver Gold Bull and Bluehost.