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Sunday, December 16, 2012

Gail Vaz-Oxlade to the rescue

We received some snow in Montreal today and the weather got a bit warmer. I went for a walk under the snow and I took some nice winter pictures. Montreal can turn real pretty under the snow. The pictures were mostly took at Lafontaine Park. I continue my walk downtown. I must admit, I cheat on my $100 food challenge by eating a Big Mac and a small fry. It was the most delicious Big Mac I ever tasted in my whole life.

I continue my walk downtown. I was cold so I stop by the Chapters.

And its when that I notice a new book by Gail Vaz-Oxlade. Or maybe its one of her book that been published a while ago. I don't know. I was happy to read Gail Vaz-Oxlade book because it was like a oh finally, someone with common sense! First of all, let's start with RRSP loan. I did pay off my RRSP loan not too long ago, remember?

Getting a RRSP loan was a complete mistake coming from my part. I did save massively on taxes on the year I took the loan, yes. It worth it because I was earning and I still earn today more than 40k a year, including dividend, salary and freelance. I earn a bit more than 40k a year, but because I do, I pay massive taxes, especially while living in Quebec province. Quebec government is only good at one thing: sucking the tax payers.

And I am seriously wondering why I am paying all those taxes for. I don't have access to a valuable health care system. Quebec education system is terribly poor. I mean, I completely understand the decision of Jacques Villeneuve for leaving Quebec province. Someone like Jacques Villeneuve, a so honorable personality, who always been true to himself, to is passion for the automobile sport, someone so loyal, authentic cannot be wrong. He needs to protect his fortune from Pauline Marois rats. I wish him all the best. A good education for his children and all the best in his projects. When come a time where taxation is too high and the quality of the services provided by the government is so low, individuals have to do what they need to do to protect themselves and their love ones. As a true Canadian, living in Montreal, in a Quebec province dominated by Pauline Marois et sa fameuse bande de caves.

Well you know, its no surprise that the good of the good ones wake up and have the courage to express themselves on a situation that is really not normal. The extreme arrogance of Pauline Marois is going to burn Quebec down on the long run. Its not normal to be living in the highest taxes place in North America. We are paying for what? For the future of a province who's selfish and hypocrite.

Ok, let's move on again on that RRSP loan thing. I was so extremely please to read in Gail book that she doesn't recommend to get enroll in a RRSP loan. The RRSP loan that I used to have represented a payment of $108 per month. This is quite some money! I am very glad to have it completely paid off. There's only one thing I found strange about Gail book, its when she talked about the interest of a student loan.

Gail said that the interest of a student loan is 2% + prime rate + 5%. Well, I may be lucky, but the interest of my student loan is less than 6%. So knowing its so low, I never care about owning money on my student loan. Especially knowing that I received a tax credit every year for it. Another interesting thing with Gail book is when she talked about the benefit of renting instead of owning. We share the exact same opinion on this one. Owning a house or a condo is ok when you are already a millionaire, but if not, if you cannot afford paying for your living out of your investment, how in the world are you going to be able to afford owning your own place. It make me laugh because the guy who laid off me in New Brunswick was the father of 2 young children, wasn't even married and had a house of his own with a mortgage on it. And the poor fool was having problem to make ends meet. Now that the organization is completely running out of money. I can only smile. First, you act like a fool, you have responsibilities, you take a big mortgage in a small town where the economy is at 0. Right there, I have my revenge.

My force is being able to understand more than you can even imagine. Getting a mortgage, paying the mortgage, the home insurance, the electricity and everything else that come with a home. I mean, you must understand me when I say that owning a home - and a fancy big one - is for people who are financially independent. Mortgage is a product that banks came with a long time ago so they could make money out of the middle class who are only living to own they very own place. BMO Bank of Montreal is making the big bucks on mortgages. Other banks too but it is particularly true with BMO Bank of Montreal. A mortgage won't bring any cash in to build the future of your portfolio. A mortgage = salvation and poverty.

The trick with the investment game is to come and elaborate the sexiest portfolio you can ever come with so little by little, the portfolio become a source of income and eventually, the income become more and more important. That way, you get in control of your life. Once you become financially independent, once you have enough to pay your minimum living expenses - no one else than you have control over your life. You can lose your job, get sick whatever else. No matter what happen, you are protected from everything bad that can come from the outside society.

Being independent financially is the key to an excessive and sexy freedom. With their reforms and new taxes, Quebec government of Pauline Marois is killing the dream. Individuals have become the milk cows of Quebec rich society. And not only the middle class, but also the millionaires like Jacques Villeneuve. No one should be paying the price. While facing oppression, the best thing to do is to fight back and leave. Personally, it wasn't a surprise for me when I read that Jacques Villeneuve was leaving Quebec. Quebeckers don't see clearly and don't have the judgement it take to build something good for themselves and their descendants. Quebec has become the land of perfect corruption. Just take my personal example. I am being insulted at work. I was giving a permanent status after spending 7 long months where I am.

Quebeckers are simply laughing in front of my pretty face. As a Canadian, I don't like Quebec province and I don't belong here. I will get revenge.


Anonymous said...

You sound mentally unstable. Please don't do anything violent.

Anonymous said...

You need to look up what the Smith Manoeuvre is. It may not be for everyone, but it is a way to make a mortgage tax deductable in Canada. We paid our modest home mortgage in 5 years using this technique and moved ahead on the road to financial independance. We have helped several other friends to understand this little trick to better themselves as well... A point on home ownership costs for our family of 3, now with no mortgage, our expenses (taxes, heat hydro, etc...) to run and maintain the house are about $10K ($830/month) for a 1.3 acre, 1500sqf bungalow valued at todays market value ($400K)- I'd say that is pretty cheap!

Anonymous said...

Blah, blah, blah, you are so narrow minded, it's unreal. Keep wasting your time trying to collect a few air miles to save a few bucks. Sunny, not everyone is poor like you, lots of people make more money than you do and so can afford a house, a new car and vacations. Yeah some buy bigger house than they need, just like some drink too much. You don't need to put everyone in the same category.

The irony is that your paying rent to someone that borrowed money to build an apartment building to make money. So the bank is making money, your landlord is making money on you and you're the slave that will be stuck paying rent to not only make the bank richer but also your landlord. And you think your so smart. I'm 42, my brother is 39 and we both have our house paid, we don't have to worry about noisy neighbors, rent for the rest of our life and best of all, we have our privacy. Try adding up all the rent you'll pay in your lifetime; you'll see who's a slave.

Check out MHR today after the dividend date, it's down 12$. No free money. The same awaits HRX on Thursday. And HRX didn't announce 2 dividend date, the 2nd date was a result of the dividend representing more than 25% of the value of the shares. Of course, it's easier to blame someone else for your ignorance.

Anonymous said...

Hey Anonymous - read greaterfool - have you saved anything for your retirement? Is your house gaining value? What would be the scenario if you wanted to move? Have you read the wealthy barber? But yeah, I agree that Sunny is mistaken about these dividend stocks. Preferred shares, ETFs and the odd dividend stock that has good sustainable numbers. No free money.

Sunny said...

The Smith Manoeuvre seem to be interesting. I am pretty sure my readers are just looking forward to learn more.

I guess I would be pretty scare too if I would be a reader of this blog lol.

You cannot enjoy reading blogs if you don't like the blabla. I mean, what do you except?

In real life I am very calm, I never panic. I am always in control. But on my blog, its another story. I can real clear my mind and its quite powerful to be able to write all the blabla that come to mind without having to think twice about it. On my blog, there's no control. I let it go.

For that specific reason, I usually never read back what I write and it is how I am reinvented the English language.

Raw English 4 ever.

Its just funny that I can seen as a maniac.

See me as a sexy maniac, at least. PLEASE.

Ok, last commentator, you said you have a house. Is it mortgage free? How much do you paid for your utilities and insurance? If you were about to lose your job, could you afford living in your house?

See, its about being poor, its about eliminating what is toxic in your life.

And for me, the idea of becoming a home owning with everything that it involved and all the cash and everything, I mean no. Its not about being poor, its about discipline and having control over your life. Nothing less.

I am not ignorant. I like to share what I do in my life, in what I invest in and I TRULY like to share my point of view about Quebeckers. Its among my favorite topic of all time.

I am not ignorant, I am sexy smart and I have plenty to say and plenty to write about. Just to let you know, ok.

Anonymous said...

HRX didn't announce 2 dividend date

Because the amount of the special distribution exceeded 25% of Héroux-Devtek's current stock price on November 9, 2012.The Toronto Stock Exchange requires that the shares trade on a "due bill" basis from the opening of trading on November 16, 2012 to the close of trading on December 19, 2012.

Anonymous said...

I could ask you the same think, how you going to pay rent if you lose your job. Let's put it this way, I have more money in the bank than you do and no debt. Even if I didn't, I could always get a line of credit on the house or sell the house. You only look at the negative, but when you accumulate assets like cars, houses, trailers etc it can always be sold. Nothing wrong enjoying those things in life while you can.

Also, If I can't afford the utilities, I couldn't afford to live in an apartment. My monthly utilities are as follows: electricity 200$, water 50$, home insurance 30$ property taxes 130$ for a total of $410. You see once the mortgage is paid, you are in control, not the bank. If I recalled, you said you moved in with your parents, does that mean your parents own a house that is more than likely paid. Oh and in case you're wondering, I'm from a small town in New-Brunswick also and as you can see it doesn't cost much to live here.

Obviously I also have other expenses like you do. I have a Rogers bundle for cable, internet and phone for 115$, I have 2 vehicles paid for but I pay insurance, gas and repairs and I own a travel trailer.

My philosophy is enjoy those things when you're young, when you're old and you have 1 million in the bank, you will realize that you should probably had spent some of that money enjoying yourself while you where younger because as you get older, you want feel like doing a lot of things you liked doing when you where younger.

Just because you're a single woman and you think owning a home is a big scary thing, I can assure you you are the minority. All I say is don't put everyone in the same boat. Maybe you don't earn enough money to own a home, but lots of people do and gets lots of enjoyment out of it. I don't doubt that some people that own a home are overly in debt just like some people living in apartments are heavily in debt on their credit card or personal loan, but again most people pay their mortgage and the proof is in the profit the banks make. I paid my mortgages off in a little over 10 years and the bank made money on me during those years, just like it's making money on you while you invest with your margin account; it's the same thing. If you use the bank resources smartly, it can put you ahead.
My problem with you is you slam mortgages, education, etc just because it's not for you but don't realize how many people benefit from those things. Both goes hand in hand, you get an education, make lots of money and owning a house is not scary at all, I wouldn't have it any other way.

Sean said...

1- Smith Manoeuvre is awesome! Doing it as well.

2- Stop saying you've paid off your RRSP loan in full when you haven't.

Anonymous said...

Stop bitching about Quebec and leave. Why do you keep coming back then?

It doesn't make any sense, like all of your posts and all your financial strategy.

You do no know anything.

Sunny said...

I came back to Montreal because Quebeckers like me and want me. And trust me, they really do.

If you don't like my bitching, why do you keep reading and, why of why are you commenting on my blog if you don't like it.

You are just like the others.

You want me. Its just you don't know it yet.

I know everything.

I am not scare of owning a house. I don't want to own one, that's all.

Education and house owning doesn't worth ANYTHING is our modern world.

(I know what you are thinking right now: WHAT A BITCH!).

I know you like that.

Sean, I have paid my RRSP, its paid off. I used my credit card money at 1.9% to pay it off. You know like me that its paid off. Get over it.

Anonymous said...

I often check this blog to see how many new comments there are and often skip over the actual post. I think the comments on your blog are quite entertaining.

Anonymous said...

I agree, you have not paid your RRSP loan, only transfered it to a temporarily lower borrowing rate. It is still listed as debt on the books... Hope you do manage to pay it off before the interest rate rises though, otherwise, it might not have been such a great move.

Anonymous said...

No, I'm thinking you're in the minority and even your parents own a house. I'm thinking that you are narrow minded because you're uneducated and if I would be living on your salary and job security, I wouldn't want to own a house also. So you think everyone is in bad shape like you, but the fact is that lots of people got an education, got more job security and earn a lot more than you do so they can go ahead and plan their future and not be afraid to lose their job all the time. When you have an education and a secure job, you don't need 1 million in the bank to feel secure. You on the other hand have to move to a place you dislike to get a low paying job.
Has far as your RRSP loan, I agree with Sean, it's not paid, it's just transferred to a credit card. Hell you'll probably be paying your student loan for the rest of your life, how the hell can you afford a mortgage.

Anonymous said...

To anonymous above (17 December, 2012 10:07 PM) - Where can I start? have you saved anything for your retirement? Absolutely! Just over seven digits in invested assets. Is your house gaining value? Yep,bought it back in 1999, paid the mortgage off in 5 years at a cost of 11K in interest, and the house market value is just shy of 2.5x what i paid. What would be the scenario if you wanted to move? - sell the house, pay no tax on the agins, and move intot a small house perhaps? Have you read the wealthy barber? Yeah, but 10% savings is too small. you need to shoot for 30-40% of after tax savings if you want to really get ahead and enjoy life - Have a read of a better book - "Your Money or Your Life". I agree that Sunny is mistaken about certain dividend stocks, but others from the recent past, she has made good decisions on. The only free money out there is that which the FED can print, and even that it is only free to them :)

Anonymous said...

Yeah, I'm sure Quebeckers want you. Very badly.

«Hey guys, we love the Acadian girl so much! She keeps on bitching us. We love her!»

Your bitching about Quebec is so cliché. The fact is : you are living in Montréal because it's a cool place and because you can work in French and in English.

Otherwise you can always go to Toronto.

I will never come back to your blog. Good riddance.

ps You are a sad lonely girl. I feel for you (well, not really)

Anonymous said...

Anonymous: If Sunny was living a large lifestyle (we've all seen the posted apartment pics, so make your own mind up) & able to fund (supplement) it from investments, I'd agree with her approach. As it is I agree with you in some respects. At least a house is forced savings, even if it depreciates in value. You can't live in a stock certificate. Unfortunately she doesn't seem to have a stable job & prospects don't look good. Purchasing a house, even if she wanted to, or even if she got a tenant, probably isn't prudent. What she needs is stability first (financial & it appears relational). Let her dream her dream. Why are we reading? Well, I guess originally I thought this was a blog about finances & dividend investing. Its becoming more of an online public melt down and a manual of what not to do. Yes, it is unique. And I guess, it actually makes ME feel really good about ME. Thank you and cheers!! Anoy-perrogies

Anonymous said...

You're an idiot if you think education is not worth anything in our modern world. I see our younger generation coming out of university and getting jobs at 35$ and more an hour. Our skilled laborer are working out west in Alberta and making over 100k a year. Just because the US has hit a rough patch, doesn't mean it will stay like that for ever; it's already starting to turn around. You are too negative and not forward thinking and for that reason, you will always be a slave to your employer; but that's ok, because the world needs people like you to flip burgers.

Anonymous said...

Good Job!! Proud of you miss! You will go far.You remind me of myself in lots of your approach. I own a few house now, and lots of other things...anyway keep posting. I enjoy reading French :)

Anonymous said...

Derek Foster posted some videos on his youtube channel of the same name. Thought you would like to know.

For the commentators, Sunny doesn't have a family or kids. No a house might not be the best option for her money. I think Sunny is better off investing in something that provides cashflow. So if she is out of work, she has money coming in.

The cashflow from my assets help me sleep better at night.

Anonymous said...

The comments are entertaining and where you get the most useful advise. I think Sunny writes just to provoke the reader. The only time she gets lots of readers comment is when she rants or talks nonsense like free 5$ dividend from HRX.

Look at HRX, do you still believe in free money? Like I said, the best advise on HRX was in the comment section.

Anonymous said...

Shares of Heroux down $5 as I write. Do you understand Sunny that the $5 dividend is just your own money coming back to you. But now you have to pay tax on it! Not a very smart move.

Anonymous said...

The average price of a house in 1980 was 67k today it's 365k which is 5.44 times the original amount. If you invested in the stock market during that time,that 67k would be worth 458k. Let's not forget that the stock market is volatile and the house brings more benefit than just investments. You get to enjoy it and still make money instead of just owning a certificate of a stock. If you owned a house in Vancouver, it would be worth even more than the stock market.

Sunny said...

Who are you to say such thing to me? Not a very smart move?

HRX will go up again. And I really don't care if it goes up just later because my portfolio is all set. I can afford to wait. I am not in a rush to sell and I won't sell now. I was totally aware of the risks and I even told my readers that once the settlement date is past, that HRX could go down. I know how things work.

And really, even with that loss in HRX, my portfolio is up. I am now close to 122k... So who look smart now?

Investing in stocks is a big game. I was in to get my big dividend payment. I had a real fun on this and what matter is to be able to understand the market and the risks.

I understand it all and just watch me going like a rocket to the moon and hit the 12k a year in dividend income. At 7k, I am not too far away.

I wish you good luck because you'll need some. You sound like a complete idiot to me, you simply cannot be someone who's a good investor. You have a lot to learn and swape up your manners on my blog or I am going to wish you a terrible car accident and its going to happen for real.

Sorry other folks, I have no time to answer your comments but thank you for the entertainment.


Anonymous said...

Sunny, you're missing the point on HRX. Of course it can go back up in the future, just like any other stock. But the fact is, you paid interest on your margin account for over a month to buy HRX and you have to pay tax on the dividend. You didn't gain anything.

You could have bought yesterday at 7.50 which is 5.50 less than what you paid. You see, you would be farther ahead, have no tax to pay and no interest paid on margin for over a month for nothing.

Anonymous said...

Do you realize you haven't made money on the market again this year. You started the year with about 115k, you invested new money into HRX, HLP.UN, KEG.UN, CNR, VSN, CPG, and JFS.UN and now only have 122k. All that increase is coming from your money and not increase in the market.

Anonymous said...

We only pick on you to help you... Most of us realize that you are better off than most at your tender sezy age, but we want you to avoid some of the mistakes us older guys/gals have already gone through. HRX may very well playout in the longterm as some of your other choices have, we just hope that some of our comments help you to keep more of it long term. Cheers, Merry Chreistmas & Happy NEW YEAR - And may it be prosperious to those who take the time.

Anonymous said...

Hi Sunny-I took the liberty of going to HRX's website to read the official press release. According to the press release:

"Therefore, the previously announced special cash distribution of $5.00 per share ($157,494,525) will be composed of a capital reduction and repayment of $2.70 per share ($85,047,044) and a special cash dividend of $2.30 per share ($72,447,481). As a result, a shareholder will, under certain circumstances, not be subject to tax on the amount of the capital reduction and repayment or, at the very least, be able to treat the amount of the capital reduction and repayment that is in excess of the shareholder's cost base in the shares as a capital gain"

The press release states very clearly that the 2.70 per share is be taxes as a capital gain while the $2.30 is considered a dividend. WHile you will get a total of $5/share after taxes you will get much less. My advice to you is don't spend the entire $5/share. Save like 40%-because when you sell your shares of HRX the gov't will have deemed that a return of capital-which is taxed at the higher capital gains rate.

I hope this clarifies things for you.
I hope you have a Merry Christmas and a Happy New Year. Try not to attention to the stock market while you're in NB.




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