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Tuesday, March 13, 2012

My deb situation on date of March 13, 2012

8 232.30$ at a low interest rate of 4.75% (RRSP credit line rates) = 391.03$ in annual interest

4 900$ at a low interest rate of 4% (credit line rates) = 196$ in annual interest

7 735.29$ on a credit card at a low interest rate of 2.9% (result of a credit card balance transfer) = 224.32$ in annual interest

6 924.05$ at low interest rate loan at 5.50% (student loan) = 380.82$ in annual interest

5 000$ at 8.75% (credit line) = 437.50$ in annual interest PAID OFF

6 296.88$ at 7.52% (credit line rates) = 473.53$ in annual interest

54 331.42$ at a low interest rates of 4.25% (margin money coming from my broker account): =
2 309.09$ in annual interest

935.41$ at 0.99% for a year (with American Express) = 9.26$ 

TOTAL: 89 354.85$

TOTAL in annual interest: 3 984.05$
[In date of March 13, 2012]


Anonymous said...

besides the student loan and the margin account, what are the other debts used for? personal usage or investment purposes? if this is the case, then they are tax deductible loans. the rrsp loan interest is not tax deductible. if i were you, pay off the higher debt first, because you are guaranteed to save 7% a year with zero risk.

Not Working said...


did you used your broker margin to purchase dividend paying stocks too ? you are willing to take that risk ? (i find it a good idea but it seems a bit risky)

Sunny said...

All the debt are for investment purposes, its not for personal usage. I am looking forward to pay the credit line at 7.52%, it's my highest interest unpaid rate, very shortly, it will be completely paid off, just like that 5k at 8%.

I had my margin account for a little while now. At first, I had 50k available. I was supposed to use the money to only pay off some debt, I did so, but I also use the money to invest... and that's why I got close to 90k in debt and close to 170k in investment value.

Yes, margin come with a high risk but I am totally aware of them. I don't recommend to anyone margin investment. In my case, having access to 50k cash was just too tempting. I cannot control myself.

Anonymous said...

Sunny, aren't you getting tired of seeing your Sprott, gold and silver stocks go down 6 or 7 % in a day. With the economy improving, don't you think that you own too much of these volatile stocks.

Sunny said...

I am the very patient type of investor. It make me able to HOLD forever and in result, I had been able to recover from every single stock crash I gone through since 2008 - and that included the 2008 stock crash. I know my experience that by holding, I increase my chances of recovery.

Reason why I said that Sprott products are for the rich is that they can be quite volatile. knowing better, I may wouldn't have invest that much in the Sprott silver. On the other hand, I kind of develop an interest on silver. All what Eric Sprott said about silver just seem such of an interest that I couldn't go on a wrong path by investing in silver.

I hold on what I have of Sprott because I believe that I will be able to make money on those. The hardest is to hold, but after a while, holding just became easier and easier.

It doesn't matter what's happening now, what matter is the actions you are taking now in the present time while facing the volatility. My hold trick what I had saved me financially speaking. I am not giving up on my stuff, you just need to read about my experience with DNI to understand that holding is the best thing you can you while having stuff in your portfolio that you like and believe in.

So yeah, Sprott, pretty volatile but the pretty me prefer to hold it tight, I won't let it go anytime soon.

SII could jump when silver gain in value, by the way.



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