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Saturday, April 21, 2018

My first TFSA contribution of the year 2018!

I always have a good idea of where my net worth is setting at by looking at my numbers, but I like to post an update of my investment portfolio once in a while, even knowing that I am not beating yet my highest value ever, which was reached back in December 2017. With my hair freshly cut, just get out my way baby, the hunger to beat it up sharply is real more than ever and I am no longer too far behind. The stock market is making me suffer, but nothing best than a good punch in the stomach to wake up this girl.

One day, The TSX will good to me and it will be a lot easier to focus on the next natural step, which would be the $250 000 value. The 250k doesn't bring in much excitement on me. But the $300 000 is the real deal. Currently, my net worth is of $219 227.69, and that fabulous highest value ever of December 2017 was of $221 989.65. Since the beginning of this new year 2018, I have tried hard to push it over that magic 221k, with no success. 

Currently, the TSX is not steady enough and without a stock market in good shape, its difficult to move forward from my old score. For the time being, I will just be happy if I can finally exceed the old 221k mark. Things are not looking so bad overall and that's why I decided yesterday evening to proceed with my first TFSA contribution of the year 2018. It was about time, especially knowing that I have 10k in contribution room left for my TFSA! Its a real shame, but this is what it is to be linked to a margin account in a non-registered portfolio. It make it difficult to make any moves at all! Currently, I load $103 142.63 on my margin account. And I have left available $25 160.79. I watched closely those amounts every day or almost, just to make sure I don't get stuck in a wrong turn. But at 25k available, I have enough to take some stocks of my non-registered portfolio and have them transferred over my TFSA.

It seems like the rules for TFSA contribution in kind had changed at TD Waterhouse. When I was giving my order, I said I wanted the lowest value of the day for each stocks concern by my request, but it seems like we cannot no longer choose between the lowest or highest value of the day. While proceeding to a TFSA contribution, you can choose the stocks you want to transfer from non-registered to TFSA, but you cannot choose the value anymore. The value picks by the system is the one at the closing for the day. I have no problem with that, but the old rule gave a little bit more flexibility

For this first TFSA contribution, I picked National Bank of Canada (NA) and Northland Power Inc. (NPI). Since I already had NA inside my TFSA, I figured that I should just have the existing NA shares of my non-registered transferred over my TFSA. I already had some NA shares inside my TFSA portfolio. As for NPI, it was currently on a little capital loss, so I taught I could declared and the loss and get the shared inside my TFSA. Following what, I still have contribution room left to make other contribution in kind. for my TFSA. And I was thinking about my BMO shares, since they are too on a little loss right now.

While picking stocks of my non-registered portfolio for my TFSA, I try to pick some dividend payer stocks that currently are experiencing a small capital loss. I won't ever take stocks in which I registered some real big capital gain, like for example Premium Brands Holdings Corporation (PBH) to be transferred over my TFSA because if I do so, I will have to pay extra taxes because of the enormous good capital gains I made on PBH. 

Having stocks transfererd from my non-registered account to my TFSA will affect the value of my margin acount. For example, NA and NPI had a loan value of $3 677 for my margin. This is decreased of $3 677 the money available on my margin. Lucky me, its pay day next week, so I am going to take $3 677 from my banking account and have it transfereed over my margin. In the meantime, the amount left available will go down from $25 160.79 to $21 483.79. The lowest that amount go, and the closest I am getting from a margin call. that's what you need to keep in mind while trading on a margin account. Its a risk I am handling, but I don't recommend any of my dear readers to open a margin account, especially if you are the type like myself who get easily excited and who's a stock junkie, always on the ride and always searching for something new to invest in.

Another shame of mine is to have $2 272.31 in cash inside my TFSA, and I didn't invest that money yet. However, I am now pretty sure that I will be investing that amount in Calian (CGY). The stock seem to be stable and pay a nice reasonable dividend that seem to be reliable. This new investment will bring my annual dividend income to $8 489.73 (excluding RRSP), about $707.47 per month. I think CGY is a good pick and Stockopedia also share the same opinion. On Stockopedia, Calian (CGY) has the status of a Super Stock, and has a StockRank of 97 - two great features.

Right now, I really need to make good investments and those new friends will help me to push it to the 300k value. another stock I would really like to welcome in my portfolio is Logistec (LGT.B). It doesn't rank as wella s CGY on Stockopedia, and LGT.B only pay a tiny little dividend, but I have my eyes on that Susan Brunner stock.

Just to add for the fun, I just found out that one my favorite French rapper, La Fouine, has released a few new tracks and its quite good, so enjoy.



1 comment:

Brian Cheung said...

Sunny,

Please be careful when you transfer asset from non-registered account to TFSA or RRSP in-kind.

If you hold stocks showing a loss in a non-registered account and you transfer them in kind to your TFSA (or your RRSP, for that matter), you cannot claim a capital loss. However, if you transfer stocks with unrealized gains, then Canada Revenue Agency considers this a “deemed disposition,” and you would be responsible for reporting the capital gains and paying tax on them.

 

Thank you

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