Some technical problems with my new TD Waterhouse stock margin account

So far, no news for my public offering in Horizons Gold Yield Fund (HGY.UN). I call TD Waterhouse today as I had been promised a call back today but never got a call... It's always like that with TD Waterhouse, they always promised to call you on this or this and never return the call. If it wouldn't be for the super smooth-strong teddy bear voices of some of their male brokers, it would had been a long time ago that I would had left the Canadian online broker TD Waterhouse... lol... But hey, nothing to worry about. I won't leave TD Waterhouse anytime soon for many reasons. One of the reasons being that at 9.99$, TD Waterhouse trade commission is one of the lowest - this commodity trading broker offer one of the cheapest online trading. Overall, as a commodity trading broker, TD Waterhouse had been very good to me. I have all the credit products I needed and requested with TD financial. I basically never been refused anything. I am not looking to get the moon, just a few things of my own.

As with this public offering for Horizons Gold Yield Fund (HGY.UN), the units trade at 10$ each, minimum investment needed being of 1 000$, commission free! That's right, there will be no I want to invest 2 000$ using the margin of my online stock trading account. I should know for sure by tomorrow if I can move on with my direct public offering proposition or not. Ok, it could sound silly, but it's not. Why? Well, because of the minimum required of 1 000$. At 1 000$ any investor living next door can participate in the public offering of Horizons Gold Yield Fund (HGY.UN). And really, those TD Waterhouse brokers need to work so I am giving them some work to do. No work, no job right? I am the one giving TD Waterhouse discount commodity brokers business.

And talking business, the business is going well. My online earnings continue to go up. We are not talking about hundreds of dollars per day here, just a few bucks, but that's enough for now. I am still without any metro pass. I am a New Brunswick girl, use to cold weather... I am doing ok without my metro pass for now. I am just very happy to be able to keep that 70$ (price for a metro pass) in my pockets. also, Idecide not to purchase a new pair of winter boots to save more. I am still working on my HubPages. I have many articles subjects on the way. Finding time to write is not that hard, but what is hard is to write. Does that sound strange just like for all of the rest? Anyhow, I am just loooking forward to save more money and stop purchasing sushi and other foodssss. During the last couple of months, I didn't pay to much attention to my budget but now that I have that stock margin account, I want to save more because I want to pack my non registered portfolio of more units and stocks.

As for the online investing business, the overall of what I hold at the commodity trading broker TD Waterhouse is now at 97 462.04$. I am now very close to the 100 000$ in my broker account and having all that money at TD Waterhouse just show you have much I feel secure at TD. But no matter how much I like TD, seem that lately, I am experiencing some technical problems, following the apparition of my stock margin account in my non-registered Canadian account.

The problems started when I first received my latest Just Energy Income Fund (JE.UN) dividend. I had received the dividend in my cash account, which was not related to by now stock margin account. The dividend (7$) left over and the 5 units earn of the DRIP where lying in there all alone, in the cash account. So I call TD Waterhouse, and they proceed with the transfer from cash to the stock margin account, so the 5 new Just Energy Income Fund (JE.UN) units can join the rest of the units... I was able to get this done over the phone. One problem that occur also was that I was able to see, in my overall view, that I had received 80$ in my cash account, but when I click on the link, I wasn't able to access the account...

On date on today again, I have a 8$ in cash (in the cash account) that I want to transfer over my credit line, but I cannot proceed with the transfer. I had been trying in 2 different occasions now and its just not working. Also, remember that I plan to pay my 5 000$ TD Canada Trust credit line at 8.75% using my stock margin account? I was about to proceed with the transfer from my stock margin account to my TD credit line. But while selecting my stock margin account, I saw the amount of my investment (73 000$ and a bit more) instead of the amount available on the stock margin account (something around 40 000$). At the end of what, confuse, I did not proceed with the transfer. So I guess I will have to call TD Waterhouse again tomorrow see what's going on and ask them to proceed to the transfer for me.

Holding a stock margin account is even more dangerous that what I first taught!!!

Following the application of my stock margin account, TD Waterhouse send me a charming little kit containing all the information related to margin. I read all the information related to my newest stock margin account of course and well, find it discouraging to even use my stock margin account. Why?

Well, it seem like TD Waterhouse had the right to sell any of my investments without giving me a "margin call", without any notifications. Depending of the stock market conditions, TD Waterhouse reserved the right to sell investment in case of a drastic loss of assets value.

Previously before, I was told by a TD Waterhouse broker that there was a 3 days delay to put the account back in standard and that there was going to have a call before anything being done. But it appears that none of this is true! When it come to investment, I am not even sure if anyone of TD Waterhouse know what they are talking about. Really to that point. And yes, sometimes, I hate TD Waterhouse. I really do. I am frustrated.

Can you explain to me how am I suppose to use margin than? That's exactly here that come the 30% rule I guess, coming from another TD Waterhouse rep I spoke to. This mean that to play safe and not be stock on a non-authorized assets sell, better not to use more than 30% of the money available in a stock margin account. 30% or even less. It's all experimentation at this point but I won't use more than 30% of my margin money and also, I plan just to do a one time investment deal using my margin money (the 2 000$ in Horizons Gold Yield Fund (HGY.UN)) and pay off my 5 000$ credit line at 8.75% and I think that after that, it will be all. I won't use more of my margin money because I am now a... margin chicken (and not margin sexy, not anymore). Not all all. Margin is not sexy at all.

Despite the margin suffering, I had receive a surprise: Quebec province send me a 149.50$ cheque! That's nice, especially before Christmas. With the money left on my line of credit (160$), it make a nice little extra. I just received my paycheck, and even after paying my laptop, I have an extra 623$ available: for a Louis Vuitton monogram wallet (lol) or... a new investment. I am thinking about my next investment, but no specific idea yet. I could simply keep the money in my banking account for once. And it could be what will happen because I won't be working at my weekend job until middle or end of January so in the meantime, having a couple of extra hundreds of dollars available just in case of need won't hurt. But to say the true, I would like to invest again in silver through the Sprott Physical Silver Trust (PHS.U). One thing I don't like about the Sprott Physical Silver Trust (PHS.U) is that no matter how good the investment is, it won't bring any dividend in. I have to say, I am very tempt to invest again before the end of 2010, no matter how little the dividend.

The Tourist with Johnny Deep and Angelina Jolie

It was great! Very fun movie! Angelina Jolie is so perfectly sophisticated. And Johnny Deep stunning and funny. I don't understand the bad critics over the film: maybe it is some jealousy? Really, I don't know. I also went saw the last Harry Potter recently. I really like as well. 

My online earnings are going well. I think it's the Maryse Ouellet effect lol... Thanks to my generous readers, I am very close to the 200$! I would like to reach the 200$ by the end of the month and even better, I would like to reach 200$ every month. With my low budget, an extra 200$ per month will make me more than happy. I didn't stick to the minimum budget I advertise in the previous post lately, but I could really make a living under 1 200$ per month.

I reached the 97 000$ mark in my TD Waterhouse broker account. I am just missing 3 000$ before hitting the 100 000$! Would that be enough to have a President account with TD Waterhouse? With a President account, I could get the margin at 3.5%.... Interesting! Do I have what it take to have a President account with TD Waterhouse? I doubt, but it doesn't cost anything to ask, even anonymously...

Remember the investment I want to do in the Horizons Gold Yield Fund? Since TD wasn't list for the public, it make it a bit more complicated but I hope it turn well. I should know by tomorrow. I will keep you post as always ;0))

Enbridge Income Fund (ENF.UN) will soon be from the S&P/TSX Composite Index

Enbridge Income Fund (ENF.UN) had performed well lately and in result, our Enbridge Income Fund (ENF.UN) will soon be add to the Standard & Poor's Canadian index operations! Enbridge Income Fund (ENF.UN) will be add to the Standard & Poor's Canadian index on December 20.

Those are really great news for Enbridge Income Fund (ENF.UN). Enbridge Income Fund (ENF.UN) is a great alternative to Enbridge Inc. (ENB) stocks. Currently, Enbridge Income Fund (ENF.UN) units trades at 17$ and Enbridge Inc. (ENB) stocks trade at... 55.77$!

With Enbridge Income Fund (ENF.UN), you get more for your money: more shares and more dividend.

I had acquired some units of Enbridge Income Fund (ENF.UN) when their trading price was below 14$. This investment had bring a great deal of stability to my investment portfolio, a bit like Corby Distilleries Ltd. (CDL.A).

At the opposite of Enbridge Income Fund (ENF.UN), Bell Aliant Regional Communications Income Fund (BA.UN) will be delete from the index on December 20. In result of the quarterly S&P/TSX Composite Index review, Bell Aliant Regional will be deleted from the Standard & Poor's Canadian index operations on December 20.

How can a margin account at TD Waterhouse can help simplify your budget?

My non registered portfolio is currently at 73 049.09$, which represent a nice increase of somewhere close to 2 000$ compare to my latest update on date of December 2nd. My online broker account in Canadian dollars is now registered under margin. The transformation is now completed.

Dividend from Just Energy Income Fund (JE.UN)

I had received 80.21$ in dividend from Just Energy Income Fund (JE.UN). I had received this dividend payment in my cash account, so I had to call to place the transfer. Having a margin mess up my broker account, but once you get it, its pretty easy to find your way.

Budgeting made easy using margin money to pay off debt at a higher interest rate

I own several credit products that I use for leverage. This meaning that I use money available on credit lines and credit card balance transfer to invest. So far, I had been successful doing so. But one problem being the interest rate paid on the money borrowed.

Here are my debt:

9 671.43$ at 4.75% (RRSP credit line) = 459.39$ in annual interest.
Minimum monthly payment required: 108$

4 900$ at 4% (credit line) = 196$ in annual interest.
Minimum monthly payment required: 100$

7 957.05$ at 4.9% ending in April 2011 = 389.90$ in annual interest
Minimum monthly payment required: 44$

4 911$ at 8.75% (credit line) = 429.71$ in annual interest
Minimum monthly payment required: 150$

7 943.01$ at 5.50% (student loan) = 436.87$ in annual interest
Minimum monthly payment required: 98$

10 000$ at 7.27% (credit line) = 727$ in annual interest
Minimum monthly payment required: 60.58$

TOTAL in debt: 45 382.49$
TOTAL in annual interest: 2 638.87$
TOTAL in minimum payment required: 560.58$

Currently at TD Waterhouse, unless you own a President account, the interest rate on margin is of 4.5%. The latest product I had apply for is a credit line of 10 000$ at RBC Royal Bank. Luckily, I only have the interest to pay as a monthly payment. As you can see, the interest rate of my credit product is relatively reasonable. My 10 000$ credit line at RBC Royal Bank is a bit high (7.27%). But my 5 000$ credit line own at TD Canada Trust is quite at a high interest rate. We are talking here of an interest rate of more than 8%, for an amount of 429.71$ in annual interest! That's way too much! Currently, that credit line is at 4 833.88$, almost full. So here's what I am planning to do: withdraw the 166.12$ to pay on my BMO Bank of Montreal credit line (where I need to pay 100$, and keep the remaining 66.12$ for Boxing Day shopping. And what's going to happen next? Well, I am going to transfer 5 000$ from my margin to entirely pay my credit line!

So forget about the Louis Vuitton purse, because there won't be any Louis Vuitton purse anytime soon, despite that 43 653.66$ that I have available on my margin account. Having a 43 653.66$ available in my margin account mean that I currently have 43 653.66$ to do whatever I want - or almost. Currently, the plan is to use some of the margin money to pay off some of my debt that are at higher interest rate.

I spoke to many TD Waterhouse representatives about margin and once advice that I had been provided was not to use more than 30% of the money available on my margin in other to avoid any catastrophic margin call. I knew from the start that I shouldn't use all the margin money available, even if its to pay off debt. In case of a margin call, I just transfer the money from my credit line to the margin account. And voilà. That's pretty easy right? Yeah but still, I think I will stick to the 30% for now. Before, I didn't come with a straight % of the margin that I should used. But just to be in good standard, I decided to stick to the 30% usage of my margin account because it make good common sense. My 30% limit on a 43 653.66$ margin account money is giving me the amount of 13 097$. So I do I plan to use that 13 097$? Here are the projects:

Purchase of 200 units of Horizons Gold Yield Fund (HGY.UN)

Amount: 2 000$

Yeah, I know. I know that previously before, I wrote that I wasn't going to use margin money to invest, but this is the only exception because this is about gold and dividend. Horizons Gold Yield Fund (HGY.UN) plan to provide a 6.5% dividend yield (for a monthly dividend earning of 10.83$).

Pay off my 5 000$ credit line at TD Canada Trust at 8.75%

Amount: 5 000$

That's sit, bye bye high interest rate!!!

And I am not even done yet. I have left 6 097$...

Pay 6 097$ on my 10 000$ credit line at 7.27%

That's pretty good stuff isn't? Well, its not over yet. Those little changes will bring a great improvement on my budget. Let's check on the before and the after:

My budget BEFORE margin use:

Internet: 51$
Rent: 555$
RRSP credit line: 108$
Credit line: 100$
Credit card balance transfer: 44$
Credit line: 150$
Student loan: 98$
Credit line: 60.58$
Usual banking fees: 5.15$

TOTAL: 1 171.73$

My budget AFTER margin use:

Internet: 51$
Rent: 555$
RRSP credit line: 108$
Credit line: 100$
Credit card balance transfer: 44$
Student loan: 98$
Credit line: 23.65$
Usual banking fees: 5.15$
Payment of the 4.5% interest rate on the amount of 13 097$: 49.12$

TOTAL: 1 033.91$


And if we continue the calculation, 1 033.91$ + 250$ (groceries and other) = 1 283.91$

Every month, I transfer 100$ of my credit line at 4% over to pay my credit card...

1 283.91$ - 100$ = 1 183.91$

While using 30% of my margin account, I can easily make a comfortable living under 1 200$. All extra money can go straight on investment.

At the end of what, I am going to end this the same way Maryse Ouellet: BE SEXY. But to this, I will add my own personal touch: BE MARGIN SEXY. But do not more than 30% of your margin, and you'll be even sexier...

Margin broker account of TD Waterhouse and Louis Vuitton purses

My margin account is now open at TD Waterhouse!

Ok, this is what I had been talking over and over again. It created a real mess in my broker account but now it’s there: my margin account. My non registered Canadian account had a portfolio value of 72 232.12$. My margin value is at 43 653.66$, which represent a 60% value of my non registered portfolio. Which mean that I have 43 653.66$ available to do whatever I want: purchase designer clothes, I am finally going to get that Louis Vuitton purse I wanted for so long, I am going to fly my way to New York for the New Year Eve. All of the stuff I always wanted to do, I am going to do them all using my margin money.

Nanana. This is a joke of course. I never dream of wearing designer clothes, I don’t especially like Louis Vuitton bag and when it come to New Year Eve, Montreal is as good as New York. When it comes to living, I am happy the way I am. What I really want to do however is use that margin money to pay off my 8.75% credit line of 5 000$ that I hold with TD Canada Trust. Also, I really want to invest in the Horizons Gold Yield Fund (HGY.UN), which is currently under public offering. This will be a transaction value of 2 000$. I just hope it’s not too late to get involved in the public offering of Horizons Gold Yield Fund (HGY.UN). I was told I have until December 17. Anyhow, I couldn’t make it any faster so if it have to happen it will and if not, well, it will be a bye-bye Horizons Gold Yield Fund (HGY.UN).

I had been busy and my only regret is not having taken it off today. My place is in real need of an in deep clean and I have laundry that need to be made. Anyone want to volunteer? I wasn’t working at my weekend job today, so I had that bright idea to go do some extra hours at my daytime job since I had been cut a couple of hours on Wednesday. I wake up quite late, went there later on in the afternoon and did a close 8 hours shift. At the end of the shift, I realize I had lost my locker keys... I look for them everywhere, finally find them (thank you GOD)... Because gees, if I wouldn’t find my keys, my laptop would had stayed in my locker! But it didn’t happen.

I will be careful with my margin and at this time, I just plan to use 16% of the margin money available. This 7 000$ loan on my margin account is pretty reasonable and this will be how it will be until the end of December. Other than that Horizons Gold Yield Fund (HGY.UN) investment, I don’t plan to do any more investment for 2010.  

Overall, 2010 had been a good year for my investments. As for the rest, that’s another story.

Fortis (FTS) dividend payment for December 2010

I had received Fortis (FTS) dividend just.. now! I had received 29.96$ in dividend income. After being send home early today at home, its feel good to have a little extra coming from heaven. I knew I was going to received something from Fortis (FTS) this month, but I didn’t know exactly when. Fortis is one of those good Canadian dividend paying stocks. I don’t know exactly when I will be able to buy stocks online anytime soon, but while remaining uncertain, I will certainly enjoy my latest dividend payment.

While I have to leave work earlier because of a lack of work, I wrote articles for HubPages, which was very fun. Do you know Maryse Ouellet? She’s a professional wrestler, born in Montreal. When I was younger, my dad use to listen to wrestling show and I never understood too well what wrestling was all about. And to tell the true, I don’t know any better now. I always find wrestling very entertaining anyhow. But at the same time, I find it very act. So when I read that Maryse Ouellet suffers of many injuries (broken nose, knees problem etc) in her wrestling career, I ask myself: are wrestlers really fighting or those injuries happen by accidents? I think that’s part of the wrestling myth. Well it is for me. 

I hope to be able to make a few pennies with my online article. I would like to reach the 100 HubPages by the end of the year. If they continue to cut my hours at work, I certainly be able to reach the 100... Better laugh about it, right. If you like to support my work, please visit my HubPages section, right here.