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Sunday, March 7, 2021

Just boring stuff, just me building up my savings - hard to believe

Here in Montreal, we kind of got a feeling of spring because the sun was out, but it still cold. However, it was nice to have a sunny Sunday. It makes it easier to go outside for a walk. I am missing the gym more and more. It can be difficult for me to do my exercises inside my apartment. I can exercise in my apartment, but what I find difficult is doing absolutely everything in the small space of my apartment. Nice weather makes it easier to go through this pandemic.

The TSX closed this past Friday session in the 18,380 points, which is not too bad. Personally, whenever we closed a day in the 18,000 points, I am happy because I know my margin remains in the safe zone. This past week had been quite busy for me, so I just had a quick look at my stocks and the TSX. I am quite amazed, my non-registered portfolio closed this past Friday session on a super great $118,796.67, my US portfolio at $3,922.50 USD, my TFSA portfolio at $111,535.65 and my RRSP portfolio - stocks only - at $54,333.30. My margin debt is at $50,294.93. I estimate my net worth to be in the $276k.

This week, I got kind of hit by a feeling of emergency to do my tax declaration. I felt I was running late for that task. So at least I got that done. I just absolutely hate the whole process of doing my income tax, although I don't do it myself, getting my paper ready, covering up all of my account numbers, name of brokers, and others, including my SIN. I hope that you are doing all the name. Your accountant doesn't need to know the name of your broker or any of your account numbers or either way the name of the stocks you hold.

I might be in the 60k income range. I contribute an extra 1k to my RRSP, so I hope I won't have too much to pay back in taxes. I am not an RRSP fan. We shouldn't have to pay any penalties if we have to use that money before retiring. But now that I quite a good amount in my TFSA and my non-registered, it doesn't upset me that much to put a bit of money in my RRSP, especially since it can contribute to lower the taxes I have to pay.

This week, my only goal is to pay down a 1k on my margin debt and the rest will go into my savings. I had started to put a bit of money in several different savings account, with a different bank. Those are accounts that I wasn't using anymore, but I felt it was a good time to use them as a savings account. I like the idea to have a bit of money here and there with different banks. And that being just in case something happens, because of my margin debt, that being my number one reason. A second reason is that I like the idea to have money someplace else in case a problem occurs, fraud, or something happens that could eventually block my account in some way. I think that when you have a margin account like me or a big debt somewhere, it's quite important to have some savings standing in a different institution. If bad luck happens at the institution where you hold your debt in, that you have a margin call or let say you cannot pay your debt anymore, your account could easily get frozen, and you may not be able to access your savings if your cash is all concentrate in the same place. For the moment, I am not well advanced in the process, but at least I am starting to build something up.

I should be able to contribute to my savings this week and I also want to pay down a bit on my margin, so it can be standing at 49k instead of the current 50k. My recent investments in Bitcoin Fund The Class A units (QBTC) and Purpose Bitcoin ETF CAD ETF non-currency hedged units (BTCC.B) are down, but not by that much. At present, Bitcoins seem to be in a state of recovery. There might be a lot of ups and downs among the way, but eventually, Bitcoins are going to hit on the 100k and once it does, and probably only when it does, I will sell my QBTC and BTCC.B shares.


Joe said...

“I am not an RRSP fan. We shouldn't have to pay any penalties if we have to use that money before retiring.”
There aren’t any penalties that I am aware of. There are withholding taxes but those are ‘taxes paid’ when you file your taxes. The total taxes paid is the same whether you are retired or not. Or am I misunderstanding something?

Sunny said...

You can make a withdrawal from your RRSP any time1 as long as your funds are not in a locked-in plan. The withdrawal, however, is subject to withholding tax and the amount also needs to be included as income when filing your taxes.,be%20made%20from%20your%20RRSP.


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