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Saturday, October 18, 2014

I am a poor investor with no fresh cash available to invest

My cheque for my student loan finally go through and after that, I only had $5.98 left to pay and I did a one last online payment for that one so officially, I no longer have any student loan! Yeah!
As for my other debt, I own $66 273.91 at 4.25% on my margin account.
I have a $94.67 on my BMO MasterCard.
I have a $1 383.70 at CIBC Visa at 0% for 6 months (but one time fee of 1% applied).
For a total of: $67 752.28
In the previous post, I talked about taking money here and there (I have a credit line at 4% on which I have 5k available. And now, CIBC Visa want to increase my limit to $7 000.. I could add money at 0%...). That's all fun but it took me a little while to pay off my 5k credit line at BMO. It is now all clear off. I no longer have any student loan. I used to have more than 80k in debt for a little while, and now I am 67k. Question being, do I really want to get in the same old pattern again?
That's a reason why I didn't make any new investment, at least so far. I have to say, I didn't have the greatest feeling about the plan expose in the previous post because its seem to be I am destroying all my efforts to pay down my debt. The idea was to have only my margin account as debt and have no more banks or anything else taking money from my banking account every month. It didn't bother me to used a 1k+ on my CIBC Visa because of vacations expenses and also, as announced previously, I bought a new laptop for only $420 after taxes, a good deal and the laptop has a 8 GB memory and a 500 Go storage - I would had preferred a 1 To but the price was too good.
So I have that vey huge dilemma in front of me. The stock market crash, and it make a good opportunity to invest - even if now the TSX gain points.... For now, I don't think I will be investing, unless I change my mind. Or unless I am the lucky winner of a million dollar. And even there... I might preferred to stock the money and live on from the interest without having to live with the market drama.


Anonymous said...

How much available margin do you have now after the pull back?

Anonymous said...

Dividend Girl, you are awesome! :) I absolutely love reading your blog! Good luck with your future investments!

Anonymous said...

We go a small 10% or so correction, but all the quality stocks aren't down that much. You have oil stocks, industrial stocks and gold stocks that have gone down the most. I still feel that quality stocks are no bargain right now and I wouldn't use debt to purchase them. Markets are still uncertain and can become even cheaper. If you are going to invest borrowing money, put all the chance on your side by making sure the stocks you buy are high quality and have come down at least 20%.

Sunny said...

Just about $13 000 left on my margin account.

Anonymous said...

Be patient, save some money and invest. Investing on margin has only increased your loss. You invested in good companies, but investment in lots of bad companies using margin like sprott, just energy and others which have not turned out for you. You bought BDI almost 2 years ago at around 20$ and it went up to 35$ but you didn't sell any. Last week it was back down to 20$. So you could have saved all that interest expenses and only buy BDI last week and not stress out about debt. Better yet, you need an investment plan to take some profit.


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