Having fun with my multiple Tax-free savings accounts and why TD Waterhouse is not that bad after all

Because they are getting pretty good at dealing with people like me! And I will go through it all in this post.

I got sooo confused on the Tax-free savings account. I taught I had understand it all – but just one little thing that I didn’t understand correctly – I taught that withdraws made during the year could be reinvested during the same year in the Tax-free savings account. But unfortunately for me, withdraws can only be reinvest during the next year following the withdraw – and never on the same year the withdraw were made. Here was my mistake.

Back in January of this year, I open a Tax-free savings account at RBC. And in it, I transfer some of my non-RRSP investment. They were mutual fund investments and in total, the money I transfer in the account was very close to 5 000$ - which is the limit authorize for 2009. I was very happy with the transaction. Everything went well and smoothly, without any problems... until… I got this bright idea.

A couple of weeks pass – it was time to invest in my RRSP and I suddenly realize I didn’t have planned anything for my 2008 RRSP. What I did was the following: I took some of my investments I had in my brand new Tax-free savings account at RBC and transfer them into RRSP. Everything went fine, well not perfectly fine, but I post previously about this, let say “learning experience” with bad agents of RBC trying to make money out of me.

Anyhow, a couple of weeks after, I decided to open another Tax-free savings account, but this time with TD Waterhouse. I complete the form and a few days after, the Tax-free savings account was from my TD Waterhouse. Once I call to see if the account had been created (I barely connect to the Internet on weekdays as I am running from 9 to midnight at my jobs) – the agent at TD told me that the Tax-free savings account was now from my TD Waterhouse account. All happy that I was, I ask him to immediately transfer my Crestsreet Alternative Energy Fund in it. But I didn’t talk to him about what I had done previously at RBC. The agent proceeds. I really taught I was doing right, until I contact RBC later on – asking what was left from my Tax-free savings account and than – but only at that time – I begin to ask question and I find out that well, I have to say it, I had done a mistake lol.

After what, I call TD Waterhouse, telling them all about what I done. And I suggest if it will be better just to get the Crestsreet Alternative Energy Fund out of the Tax-free savings account and the agent told me no. That was during a weekday’s afternoon.

Later on during the evening, I call back RBC to confirm the information of what I had been told during the afternoon and after – once again I call TD Waterhouse and the answer was still the same – I didn’t have to take off the Crestsreet Alternative Energy Fund from my Tax-free savings account. How confusing! And than, I ask the courageous agent if I could had move my Sprott Canadian Equity Fund into the Tax-free savings account at TD (like I never get enough or something lol) but he told me… NO… lol

I still do not understand in date of today – why it’s ok for me to leave Crestsreet Alternative Energy Fund into my Tax-free savings account at TD. I just hope things will turn all right. I am kind of having confident in them now.

But what I dislike about TD Waterhouse and main reason I keep “bitching” after them most of the time is that even if I ask for general info, the agents – but not all of them – keep asking for my name, my account number… And one time, I get very mad and I told the agent that I didn’t want to provide the info since I was just asking for general info. But it never works… I had to identify myself.

And by the way, their TalkBroker do not work in French but exists in French… Like anything cannot be perfect.

(and especially not at TD Waterhouse lol!!!!!!!!!!)

Another busy week

This week was quite a busy one, as I get another step in the 2008 RRSP direction lol. I transfer the mutual funds I had at CIBC into RRSP. I proceed over the phone only and everything went smooth. The guy was super good with me and once, I just cut him off and I ask him if he was going to offer me to take a loan lol! (I was still shock from my experience with RBC!!lol). And than he told me that no, he was just letting me no that he could had work out something better for my RRSP, like one of their portfolios but I said no. But it was gentle from him to offer me that and it’s really the best experience I had with an advisor. And it was over the phone. The name of the guy appears on the paper and it’s seem like it might be a sexy Italian guy. He had a very nice voice.

Even with those changes ahead, even with my new RRSP mutual funds at RBC, I do not reach the 7 000$ I need to save in taxes. Anyway, I try very hard. One thing that didn’t help me at all is the fact that the RBC O'Shaughnessy Canadian Equity Fund is close. Which make it impossible to move it into RRSP. At this time, the only « transformation » left and possible is the Fidelity Frontiere Nord mutual fund I own at Desjardins. Lucky am I if, in total, it make an overall of 5 000$ for my RRSP.

Other than that, I am quite busy with all my jobs and other, but the hardest is my morning job, where I have to call almost 2 times per day on weekdays to see if there work available for the next morning. At a point, it’s really driving me crazy and I got tired. I am lucky enough that when I end earlier or when no work is available, I can run to my evening shift and do overtime, as overtime is available even if we are not that much busy. I find it really strange that’s some overtime is available, but I believe they still need, as a contractor, meet their hours and that’s why overtime is available. But it make it very long to make a 12 hours shift at the same job in one day and sometimes, when I learn in the morning that there’s not enough work for me, I just go back home or I go to a coffee shop or do something.

Like right now, I don’t know for sure if I will be working tomorrow morning, but form my end, I don’t think so. Worst part is not having a phone or cell at home so I could call before actually getting out, but I do not have a phone. So each morning, I get ready, phone in when I close to their office, and if they told me yes, there’s work, I just go in and if not, well, at least, there’s my evening job.

But right now, I am tired and if something happing tomorrow, well, I will just go back to sleep. I will be able to sleep in until 14h30 if I feel like it.

But the worst coming from the inside of my left hand. I have this pain since the end of December. Its all begin when I invite that guy to try to fix my laptop for free to the movie, just for fun. But unfortunately for me, he didn’t know where was located the parking lots – its true it’s was a bit difficult to find. And unfortunately for me again, he park in a place where the snow was in ice and once he wanted to go, he was stuck there for good. So I push and I push so hard on the back of his car, there was nothing to do. We were stock until someone stop by and had the proper equipment to get the car out of the snow.

Not that it’s that painful, but it’s very annoying, that little feeling I have in my left hand. I don’t think my hand is broken, as I have no problem to open or close or move my fingers, but anyway, I feel that pain and its make me realize that hey, inside my hand, there might be muscle or something like that lol.

For now, the overall portrait is not looking so bad, but I desperately need a hair cut lol

I now have a tax-free savings account

I was quite busy this week as I try to figure out a plan to make things better for me. I realize – but too lately, that I have invested too much in mutual funds. But I believe it was something I had to figure out by myself. It took be time and several reading if DF books. However, I do not regret any attends I made.

I finally read Money for Nothing of DF. At first, the reading was difficult, but I bring the book at work with me to read over again and some guy notice I was reading and come to me, asking what I was reading. At work, it’s aloud to read a book when do not received calls, but we are not allowed to magazines. And recently, we are not receiving as much calls as usual. I just hope I won’t loose my job.

Anyway, I show him the book and he asked me if I had money invested in stocks. I told him that no, that I was only reading the book for fun, telling him that the author was pretty good and that he had self-published 2 other one before this one and so on. I never told anyone about my investments I do not plan to do so. No one knows about my 50 000$. Let say I do not talk to others about my money. I prefer not too and its part of the reason why I prefer to blog anonymously and just to have fun with it by my own. And I have to say, I would look pretty stupid if I would go out about it, as my 3 jobs pay, 10.68$, 12$ and 10$ per hour.

Earlier this week, I open a tax-free savings account at RBC and I transfer some of my mutual funds in there. I was quite happy to learn that it’s possible to reinvest the amount of money I could withdraw from the savings account. It’s a huge benefit. But knowing how much I am paying in taxes, I really needed something like this at this time as my overall earnings before taxes make it around 43 000$. It’s not that much, but for me, it’s a lot. And it might be a lot for the government too as I expect to be paying extra taxes on this salary, unless I invest in my 2008 RRSP.

As usual, I did not invest in a month-to-month basis in my RRSP. With my terrible job situation, I prefer, as always, to wait at the beginning of the New Year. And with all the investments I made this year, I do not have extra money to invest in my RRSP. At this point, I realized I might have done my move too quick in the savings account. The issue being that if I do not invest the max of my limit for the 2008 RRSP, I will probably have to pay extra in taxes. And I currently do not have a penny left to pay on taxes.

I consider moving some of my non RRSP mutual funds into my 2008 RRSP.

My first 10 000$ credit card

I just received last week my first credit card of 10 000$. I received it from RBC. RBC is like my favorite bank right now. I don't plan to use that credit card. The interests are very high, 18.9%, just like my CIBC Visa that I currently used for my regular purchasing. I will leave that credit card in my drawer. I use it to buy everything, from groceries to the latest biography of Brian Mulroney that I just met today at the library Renaud-Bray in Montreal... lol

The Visa Caisse Desjardins offer a credit card at 9 and something percent interest. I ask for a credit card with RBC because since I have more than 5 000$ with them in mutual fund, with a credit card, I can have a free bank account and a special account where I can buy my mutual funds by myself. I will no longer need to get through a representative, which is great, because every time I went to buy a fund that I really want and that I am excited about, I am having problems. Representatives have to respect different % in the mutual funds you buy, so you cannot always have the funds you want. It's the rule, but let's breaks them and makes things on my own little way.

For example, the first fund I buy was RBC O'Shaughnessy Canadian Equity Fund. I gave 2 000$ on that first time. Later on, I put another 1 000$ in the fund, just before it's close to new investments. After that, I wanted to buy the RBC Global Resources fund, but I was told I couldn't. Anyway, it gets very annoying and last time I went to RBC, I had to buy a US mutual fund so I could buy my Global Resources. I had too much put in Canadian funds I was told. But yeah, Canadian funds aren't the best of the word? I believe they are.

I hate my RBC O'Shaughnessy International Equity Fund and my RBC U.S. Mid-Cap Equity Fund C$. I will get rid of those as soon as I can. For one, the International Equity Fund, the 90 days period is over so I can sell it whenever I want. But in date of today, the initial 1 000$ I invest in it only worth something like 971.14$. So I won't sold it now, I don't want to loose any money. I just hate the situation. I dislike International Fund. I also have distinct fund that buy at Manuvie and unfortunately, I have buy also there International distinct funds and I have to say I regret. I know I have to buy something else than Canadian fund, but International and US funds are just not that great. I also plan to get rid of my US fund in Canadian $ as soon as possible. But for that fund, I have to wait for 90 days or something like that before selling it. It's really killing me.

I am interest in China, Latina and Precious Metals Fund. RBC should offer China and Latina Fund. I have an eye on the China Fund of HSBC. The one of BMO seem to be great to. For Latina, CIBC seems to have a great one. Also TD.

Now that I have a RBC credit card, I just need to fix an appointment to open a bank account and the other special account, all for free. But that can wait, I don't need it now. I still have money to invest, but I am too busy with other thing for now. I just can’t wait for my first 50 000$. When I will reach my first 50 000$, everything will be a lot easier because the amount of money made on the 50 000$ will be a great return.

New best buy

My new August 2007 mutual funds:

RBC Global Resources Fund: 1 000$
RBC U.S. Mid-Cap Equity Fund C$: 2 300$

Those are ad to my previous investments:

RBC O'Shaughnessy Canadian Equity Fund: 3 000$
RBC O'Shaughnessy International Equity Fund: 1 000$
RBC O'Shaughnessy All-Canadian Equity Fund: 1 100$
Fonds Desjardins Fidelity Frontière Nord: 1 000$

Total of non RRSP investment: 9 400$

I am just putting here the amount of the initial investment in here. I prefer not to calculate what they worth now, because are of those funds above are in red right now. I am closing my eyes for now and I will check the value of my funds when they will be back in green.

My favorite mutual fund: RBC O'Shaughnessy Canadian Equity Fund

I like my RBC O'Shaughnessy Canadian Equity Fund!

Unfortunately, the fund is now close to new investor. I am very proud to have it in my portfolio! I begin with a first 2 000$ in November 2006 and later on, just before the fund close, I put an extra 1 000$ into it, in January 2007.

My only regret is that I haven't been able to put more money into it. I could put an extra 1 000$ or 2 000$ at the time, but what is done is done. There might be other great mutual funds out there where I can put my money, I just need to find them. Right now, I have an eye on the BMO Greater China Class and the RBC Global Resources Fund. I have been checking the RBC Global Resources Fund since a couple of days now, knowing the stocks are getting down, and the price of each unit is now 34.3236$, which is less then 35$ or the 40 and something each part worth last July.

Anyway, in date of July 16, 2007, my 3 0000$ investment in RBC O'Shaughnessy Canadian Equity Fund gave me a return of 555.87$! I just cannot say how much I was proud of the return! But now, in date of today, August 15, my 3 000$ now worth 3 185.46$. Even if the markets are going down, I didn't loose any money of my initial investment.

What's important for me, for a long term basis, is to be able to say to myself: I didn't loose any money with the product and I have a good return on my money for a long term basis. It's the reason why I prefer for now mutual funds.