Non RRSP investments and taxes

I find MorningStar very good to find any kind of information regarding mutual funds. As I previously post, I would like to invest a little 500$ in a mutual fund that still have a good return after taxes. I was than thinking of the CIBC Monthly Income Fund.

To find information, I consult the MorningStar Quicktake Report. Each Canadian mutual fund has one. I really enjoy Morningstar because their Web site exists in both French (yes!) and English. When I don’t understand something in English, I just switch for French… and vice versa… lol, since I do most of my financial reading in English.

I try to consult their articles as much as I can but one time, I invest in the RBC O’Shaughnessy International Equity Fund without doing any search. I didn’t do any because I told myself if it’s an O’Shaughnessy, it’s a good fund. And it’s happen that the author of the review of this fund in Morningstar, David O'Leary, believe that the management fees of the fund are too high, and as highlight at the beginning of the review “We are disappointed by this fund's higher fees.” And just to let you know, the same analyst in saying the following about my super RBC O'Shaughnessy All-Canadian Equity: “Don't let the recent dip in this fund's performance concern you.” I plan to keep that fund forever. I am all proud of that fund, even if my initial investment of 3 000$ drop down to near 1 000$. This fund is now close to new investors……

In date of today, I regret that choice because since I acquire that fund, I lost my initial investment, which was of 1 000$. In date of today, my 1 000$ now only worth 762.78$. So why should I pay higher fee if the fund is not doing well? I believe O’Shaughnessy magic trick to invest might only work well in countries were the economy is in good shape. From what I notice, International funds don’t have a very good return since inspection, Canadian mutual funds are way better. I would like to invest in Canadian mutual funds only, but I understand it’s important to diversify a bit my portfolio. That’s also the reason why I also invest more than 2 000$ in the RBC U.S. Mid-Cap Equity Fund C$, a US funds. I don’t really like to invest outside Canada, because I believe the best funds are here.

What I dislike about RBC is that they ask too much for non RRSP investment. They ask for a minimum of 1 000$ for non RRSP investment. Compare to TD who just ask a cute little tiny 100$, the difference is huge. And CIBC only ask for minimum of 500$ for non RRSP investment. So why should I stick to RBC? The only reason why I begin buying funds at the RBC is because of the O’Shaughnessy mutual funds.

While I was doing some search in the Morningstar Web site, I was quite surprise to find out that a mutual fund I previously invest in, the RBC Global Resources fund, was quote five stars for after taxes value. I have a good return after taxes for that fund and I didn’t even know.

Still no part-time job yet

I am so disappointed, I didn't find a part-time job yet and I am in need of one now. I went to a Linkin Park concert at the Bell Centre on February 22. I gave 40$ to my friend for the ticket, but to that 40 bucks, add money for beer(s), a t-shirt at 35$, and 10$ for stickers… At the end, it do cost a lot, and I gave 1 000$ this month to pay on my credit card. It’s a good thing I don’t go out too much often, it do cost a lot. I am just thinking about my New Year Eve, when I finish the night in an hotel room with the same friend because we couldn’t find a taxi….. or were too … to find one…….. “Taxi, taxi, we need a taxi….”, that’s the way I call for a taxi when I am … But the taxi never come, so we had to find a hotel room, which was easier to find than a taxi…lol!

My 1 000$ check for my credit card, had been taked. I had to say bye bye to a 1 000$. I have been with that debt for a long time now so it was about time I get serious about getting out of credit card debt.

I should be ok to get another 1 000$ on my next pay check. I just hope things will remain the same for the next 2 months. I really want to pay off that credit card debt for goods. But what appear difficult for me now is to remain debt free. Once that credit card is pay off, my student loan will remain. That one doesn’t bother me that much. There was a period of time, was before I start blogging, were I pay 1 000$ per month on my student loan. I did so for about 6 months. Which shortly after I invest in my first fund, Fidelity Frontière Nord. I know I can stay debt free, I just have to stay focus.

My search for a part-time job continues. I had found some part-time job; it could have work out if not of my work schedule. I didn’t really try that hard to find a part time job. I am going to look more seriously this evening. And than, I hope it will work out. I was thinking maybe just work on Saturday and Sunday. During weekdays, my shift at work only begins at 3 pm.

I am off today from my job, but I sleep most of the day. I begin my day at 3 pm, and I have a funny taught, I would like to invest 500$ in the CIBC Monthly Income Fund, non RRSP of course, I don’t want the nightmare to continue… (see previous post “RRSP nightmare” )

My TD 2007 RRSP Portfolio: the best of the best

I was so proud of myself to get what I wanted from TD. I follow day by day the performance of my TD 2007 RRSP portfolio. What I call portfolio is a mix of the following mutual funds:

TD Entertainment & Communications
TD U.S. Mid-Cap Growth
TD Latin American Growth
TD Precious Metals
TD Dividend Growth
TD Monthly Income
TD Canadian Bond
TD Emerging Markets
TD Energy

I wasn’t able to get those right away, but at the end, I finally got what I wanted and I was quite lucky, knowing just the little money I had invest in each of those funds (100$ initial investment in each, except for the TD Dividend Growth in which I invest 200$).

Since January 2008, the month I made my initial investment, the overall portfolio didn’t do so badly, it went down to 996$ once, and now, in date of yesterday, it’s up to a super 1 012.13$!!!

For me who like mutual funds that much, I find it very hard to pay out my credit debt instead of investing in mutual funds. I would like to have a similar portfolio in non RRSP. If I was able to get it once, I should be able to get it twice. Even outside RRSP investment, the minimum investment is only of 100$ per mutual funds. Which I wonder why, because it’s the only bank I think who ask for an as low minimum. And knowing what kind of funds have TD, I just find it great that someone can invest as low as 100$ in any of their best funds.

Missing 18 000$ to reach my first 50 000$: can I make it this year?

If I want to reach my first 50 000$ this year, I will have to save an average of 1 500$ per month, which I find quite difficult to do, since for now I have to work 50 hours each week to receive bi-weekly a 1 000$ paycheck. Unfortunately for me, I cannot live on 500$ monthly. My average expenses for a month is about 1 200$. So I am currently able to save something like 800$ per month for now, with the one and only job I have. I now only have one job.

Starting from next week, I will have a regular schedule, which I ask for a long time ago. I am supposed to get a regular schedule, with weekend off. It will make it much easier to get another job, a part-time one. I was also thinking about trying to make money from Internet. I try it before, but it didn’t work out. But I can’t say that I really try.

To be able to save 1 500$ per month, I will need to have a monthly income of 2 700$ per month, which is not impossible and it’s quite realizable to make an extra 700$ by having a second job.

But the problem is that we are almost at the end of February, and I know I won’t be able to save this month, March and April that much. I ma trying to pay that 2 381.17$ debt I have in credit card. I paid 1 000$ this week, I will pay 1 000$ in March and in April, I will pay the rest, which should be around of 400$ or so…. It’s even more difficult to save because of this credit card debt, but fortunately, it’s not a major credit card debt.

It will be quite difficult to reach my first 50 000$ this year, but it’s not impossible. First step is to find a part-time job as quickly as possible.

About the CIBC Emerging Markets Index Fund

I had invested 500$ at the end of January and ever since them, I just keep making money on that fund. At the date of January 22, I had 501.75$; January 23: 502.38$; January 28: 518.22$; February 1st: 505.94$; and February 15: 523.54$. In less than 2 months, I made 23.54$ with the fund, which is very good, considering the market crisis we are currently on.

Things are not so bad, but I still didn’t recover from the money lost in January. I had lost the amount of the initial investment for many funds.

I just keep thinking of what would have happen if only I could have invest about 10 000$ or more in the CIBC Emerging Markets Index Fund, instead of 500$. I would have made 470.20$. And than I keep thinking of why didn’t I invest more…. One thing I would like to do is to invest 10 000$ a little bit around, keep the money in the fund for the minimal period without getting any penalties, which is I believe 60 or 90 days, but I will have to verify that, and than, as soon as I begin to make money in the fund, sale my parts, all of them, and continue like that to invest for short period only… If I want to invest that way, I know I will probably tell to buy stocks and sell them whenever I want, but I still prefer mutual funds at this time.

When it will get to point where I will notice I have a lot of money, which will probably be when I will reach my first 50 000$, I than probably buy my first stocks. I don’t know how to proceed to buy and sell stocks.

I hit the magic 1 000$ on my pay check....

I work 100 hours in 2 weeks, but it had worth it, I just receive a little bit more than 1 000$ as pay and I really appreciate it. I am going to be able to pay 1 000$ on my credit card. After what I will only have left 1 300$ to pay. I plan to pay another 1 000$ next month, and the other month, 300$. In another 2 months, I will be done with this credit card debt. Finally!

I could pay it all immediately, but for security reason, I prefer to pay a little by little. And a 2 months basis is a good schedule. After what the next money will be put for RRSP.

I just refresh a little bit my blog. I believe it look better this way rather than the all pink blog.