What is my cold cash?

I received an email today from a reader asking, totally intrigue, what I mean by "cold cash" in my investment portfolio:

New to my blog? Maybe you didn't know, but cash has it own favor, taste, and its cold or hot depending of the situation. And inside my portfolio, cash is absolutely COLD because I am hot. Cold cash is simply what I have as saving, and I don't have much as you can see. I basically live paycheck per paycheck and I invest all that I can straight on my TSX, and my stocks are my babies.

Its the end of the year 2018 and its quite busy at work. And I feel more and more tired as days go by. Its now starting to get dark at 4 pm if not earlier and it seem to be effecting my level of energy. And I just cannot be that way, especially now when I have so much to think about. I sleep so well in the morning like a little angel, but I have to get up and go to work... And I also have to figure out what do I sell before 2019 hit me in the face, among others. But one thing for sure, the TSX took a good hit today, going all the way down UNDER the 15 000 points - one more time. Like this is the new reality for investors, the environment is all mess up and the stock market is shaking because we had been braved enough to arrest a rich Chinese woman and send her straight to her hell and pay for her crimes in... the USA. In China, there's no social justice, but justice exist in Canada. And this is all of what China government need to understand.

In reaction, my non-registered portfolio closed today session at a $125 811.01 my TFSA portfolio at $74 259.84. My margin usage is at $66 177.58. I am looking forward to sell for $20 000 worth of stocks inside my TFSA to pay by margin. In 2019, I will sell my PPL shares. Following what, I will only have left $19 000 in margin debt. And I plan to pay it off within the year 2019. That's the plan. A $19 000 can be paid withing a year.

Aphria Inc. (APHA) is still the best pot stock on the TSX

I didn't place any order for my new investment inside my RRSP portfolio, I was too busy at work. But I did saw the nice little jump that my belove TSX made at the opening this morning. Some where in the 15 300 points! Let's go bitch, you can do this! Go go go! This should be enough to motivate her soul to start the day on a higher note today.

Just like Exchange Income Corporation (EIF) had suffered from malicious manipulations coming from a dumb-dumb American of the name of Marc Cohodes, Aphria Inc. (APHA) is currently suffering from attacks coming from another American, this time, Marc Cohodes is not involved. Today events seem to be coming from Gabriel Grego, founder of Quintessential Capital Management. I would like to understand why investors care about what Americans have to say regarding our great economy and about the great companies that composed that great economy. Americans are not exactly smart, its a well-known fact. And I refused to accept the fact that the opinion of some idiots can have a huge impact on our economy. 

Too bad, but I don't have no lesson to learn when in comes to quality asset.

I recognize a good stock and if I decided to invest in Aphria Inc. (APHA), its because it was the best pot stock we had in Canada. Or one of the best. Just like Donald Trump did with us, people like Marc Cohodes and Gabriel Grego like to mess with us. We should declared war to those short-seller stars and brake them to the bones. When it comes to Americans, I am absolutely intolerant. I don't think the modern world should pay any attention to what's going on in the USA. The world is much more than only the US. The Americans actually block our perspective by desperately getting all the attention and today, Gabriel Grego did his move, and idiot investors had faith in his voice.

Men like Marc Cohodes, Gabriel Grego like to make some noise and receive attention, but they are both two perfect American idiots just willing to destroy what we have best: our economy. I am really proud to have Aphria Inc. (APHA) in my portfolio and I won't ever let an American with poor judgement to decide of the destiny of my assets.

At some points, someone need to pay of their actions and its not us, Canadians to pay. Fuck off Americans from the TSX.

APHA will recover. Like for any news, Aphria title is really volatile, but today wasn't a good day. But guess what, tomorrow is another day, even for Americans.

Getting ready for my next investment: MTY Food Inc. (MTY) for my RRSP portfolio

My non-registered portfolio closed today session at $128 415.28, my TFSA portfolio at $75 729.71, and my RRSP portfolio - stocks only - $38 676.06. My margin account usage is at $66 214.31 and amount of money left of it available, somewhere in the 18k. My numbers are not too bad. I didn't sell any other stocks yet in order to pay down my margin.

I worked really hard to save money lately. Today, it was raining all day long in Montreal, so I count my penny cash and I actually had $111 in a mix of 5 and 10 cents, and maybe another $100 as I have a bunch of 25 cents that I am not done counting. :-) And before that, I went out for a quick walk as it was heavily raining... and I started feeling something cold on my feet, and it was the rain of course. My winter boots are no longer waterproof. I didn't like those winter boots anyway, but I am a bit upset that I have to buy a new pair, especially now while I was pushing hard to cut down my spending. I really don't want to buy a new pair of winter boots, especially not now.

I am quite good at playing this game of saving money. And whenever I want to play it really hard on myself, I put on a cash diet. The idea is, other than the regular bills and rent payment, you go on cash to pay for everything else and of course, you imposed a limit of cash you have to live on. Not exactly easy. I withdraw $100 in cash per week and that's all I have to cover everything for grocery and everyday expenses for one week. And a $100 is not a lot of money, but it's doable. And the fun is to try to go under the $100 per week. I almost already spend $100 already for this week, but that's because I bought some laundry tickets. I actually have only $9 to $10 left for this week, which will go for coffees. I cut down a lot in my coffee expenses my bringing a thermos of coffee to work. And I bring my lunch, of course. I usually set my lunches for the week on Sunday evening, and I usually clean my apartment on Saturday. In order to save money, the best behavior is to be organized. If you do all the crap before starting a new week, it will help.

I also put a few items for sale on Kijiji, but no luck so far. But I did sale a few items on Kijiji earlier this year. It worth it to check out on the stuff you no longer use and put it to sale. The most annoying part is to handle the emails. I received a few of "is this item still available" kind of email, which is really annoying, but other than that, selling stuff on Kijiji is pretty straightforward.

I currently have over $600 in cash inside my RRSP portfolio. And that's because of the extreme generosity of Thomson Reuters Corporation (TRI) who decided to treat me like a princess - and all of the investors who are holding on to some TRI shares. With that money, I would like to make a little investment in MTY Food Inc. (MTY).

The plan to pay down my margin account in the next three months

The TSX is really difficult to follow right now, its just so volatile! The ride is wilder than ever before and this is not my favorite time. My best time was following the 2008 stock crash. I love my TSX when it's calm and steady. Are the good old days gone for goods? There are always opportunities on the TSX, but it's just that things are getting harder and harder, at least for me. Its costing more and more to invest at credit, and the volatile market makes it riskier than ever to be on a margin account, like the one I had until recently. I decided to sell my PBH shares to pay down my margin and I have no regrets. 

My non-registered portfolio closed this past Friday session a $126 443.97, my TFSA portfolio at $74 795.23, and my RRSP, stocks only, at $37 755.88. Its now official, the TFSA contribution limit for 2019 will be of $6 000. Better start saving now!  A 6k represent a good amount of money to save.

This past Friday session, my margin closed on $66 731.31. Its an increased of $358.02 compared to November 16, but that's only because the interests kick in. And that's exactly why I decided to sell off my PBH shares. With interest rates that are just going to keep rising, a 66k margin felt better on my shoulders rather than a 100k+ one. And no one has the right to doubt on my decisions on that matter. And no one certainly doesn't even have the right to even think that I am not taking the best decisions for myself, because I always do. With this last paycheck, I am going to be able to decrease my margin to $66 011.31. Its amsll step in the right direction, but in other to take bigger steps, I need to sell some investments. And its now all planned!

I am thinking about selling the following stocks inside my TFSA portfolio:

Hydro One Limited (H)
Toronto-Dominion Bank (TD)
Royal Bank of Canada (RY)
Parkland Fuel Corp (PKI)
National Bank of Canada (NA)
Enbridge Inc. (ENB)
BMO Bank of Montreal (BMO)
Canadian Utilities Limited (CU)

Canadian Imperial Bank Of Commerce (CM)

The sell of those stocks should bring on close to $30 000. If I sell those stocks before the end of 2018 and if I transfered the money earn to my non-registered portfolio to pay down my margin, I will be able to reinvest that 30k inside my TFSA portfolio in 2019. I already spotted a few investment I have inside the non-registered portfolio that I would like to proceed with a contribution in kind of to TFSA in 2019: Nutrien Ltd. (NTR), Jamieson Wellness Inc. (doesn't), Aecon Group Inc. (ARE), TFI International Inc. (TFII) - and maybe: ATCO Ltd. (ACO.Y). While selecting some stocks to proceed with a contribution in kind for my TFSA, I always try to target stocks that I really want to keep in my portfolio, but that registered small capital gains, no capital gain at all - or who are experiencing a capital loss.

As soon as 2019 kick in, I could sell my PPL and ENB shares. Following what, I will collect more than what I need in order to completely pay down my margin. After this exercise, I will have a 5k left in cash in order to invest inside my RRSP - that RRSP investment will be made in order to help a bit to reduce my taxes, since I will collect a great following the sale of PPL and ENB inside my non-registered portfolio.

I could pay everything I own for my margin as soon as January 2019. And just to make sure a new debt cycle don't happen again, I will close my margin account. It will be a release for me to be debt free, it will be start of a new beginning where the money I collect as the dividend earned can goes as saving or for new investment, but definitively not to pay the interest of a margin account.

All this only to pay my margin account, but I decided to pay it all for many reasons. A recap of the reasons why:

-I will be turning 40 (!!!) in two years and I need to accelerate my savings and decreased my debt - which is my margin.

-Its getting more and more expensive to invest on credit, as prime rate just keep increasing - and will probably be increase again in 2019.

-A margin is link to the value of stocks, which value is volatile - you always need to check on your stocks to make sure your margin is ok.

-I borrow money from my credit lines when I am away to pay down my margin - and that cost me money.

Paying debt is never a wrong move, no matter what you need to sacrifice.