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Saturday, November 27, 2010

The contribution in kind at its best: from the TFSA to a RRSP 2010 contribution

I now got it! I finally purchase the mini laptop that I wanted for so long now. I purchase a small 10’1 Acer laptop at The Source. I purchase the 250 GB model, 1 GB of memory. This is more than enough to cover my basic needs. The laptop came with a free anti-virus valid for one year. I just have to send a mail coupon and I should get my 70$ back. I should also get a 50$ credit the same way for the laptop. The price they had advertised is not exactly correct because they make you work through mail coupons, which is very annoying I find. Anyhow, I am happy to be back online! From now on, I will be able to basically work online from anywhere I want. The mini laptop is compact and very light. It can easily be carried everywhere without too much trouble. I would like to purchase a mouse and a case for it.

Investment news

My investment portfolio had done quite well lately. For a little while, my non registered portfolio was exceeding the 71 000$! It’s not below 71 000$, but I am still exceeding the 70 000$.

There’s still overtime available at my job. I could have done more hours today, but I really wanted to “get out of there”. Anyhow, I left after doing close to 2 hours overtime and left. I should take a maximum advantage of the fact that I have overtime available and do the maximum hours I can, but this can be dangerous. I wouldn’t like to reach the point to burn myself. I saw one of my good colleagues leaving without knowing too much what he will be doing next. Money didn’t seem a problem to him, but I told him anyway that I wouldn’t like to see him leaving without having a backup plan, like without having another job, etc... But he left, seem to be in peace and happy. I was happy for him, but seeing leaving was like seeing a part of me stuck in the steadiness of live.

What’s up?

At this point, I do not have really specific plan on what I will be doing but I have a couple of projects I want to work on. They are:

My online projects

My online work is going well. I reach the 150$ in online earning for this month. 150$ is not a lot of money, but knowing how difficult it is to earn money online (at least it is for me lol), I am just amaze by the amount. This means an extra 150$ I will earn for December. I see my online work as a hobby, but if I had been able to earn 150$, I am able to earn hundreds of dollars more. Don’t you think so?

I would like to create a great mix of income from my jobs, my investments and my online work. It could seem simple at first but in my situation, nothing come easily – expect money. Why am I saying so? Well, you could be surprise, but I could make a 600$ investment by the end of November, despite what I taught previously. And I have to say, I am very tempt to do so!

My investment projects

I know this is really not the RRSP season, but I had begun to think about my 2010 RSP contribution. For a change, why not to think in advance? I have this great investment portfolio which perform well. I have more than 70 000$ in my non registered portfolio. For 2010, I can contribute somewhere over to 7 000$ for my RRSP. It doesn’t look like it right now, but RRSP season is not far away. And yes, the thought of RRSP contribution is just stuck in my mind, just like margin – but that’s another story. No way I am going to be able to find 7 000$ in fresh new cash to invest, even if I have until March 2011 to make my move.

A contribution in kind to a RRSP broker account can be costly! (Because of the taxes!!!)

I hold all of my savings in investments of all kind. You can have a taste of it under “My investment portfolio” page. In 2010, all the newest investment I made had performed quite well. If I decide to take some of the investments I hold and transfer them into RRSP – this meaning a contribution in kind to a RRSP – I will have to pay taxes on capital gain (because most of the investments I hold have perform well).

When it comes to a contribution in kind to a RRSP, there’s a way to be free of taxes, free of capital gain: by using investments hold in the TFSA. Yep, that brilliant idea came to me just like in a dream. What about transferring investment hold in a TFSA to a RRSP account? Would I have to pay some capital gain taxes on such transfer? Well, I call my online broker, you know the guy, TD Waterhouse of course and I ask them the following question: Will I have taxes to pay on a contribution in kind made from a TFSA to a RRSP? The answer: No, that’s the purpose of a TFSA, its tax free!

That’s specifically for those kinds of answers I am getting from TD Waterhouse brokers that I am sticking to TD! I LOVE TD WATERHOUSE. I love their way of explaining things to me you know. I love the TD way.

Anyhow, no matter how good is TD Waterhouse, I was thinking about transferring the 7 000$ I hold in my TFSA under the Sprott Canadian Equity Fund into RRSP before the end of 2010. Why?

Well, remember that with the TFSA, when you withdraw money, you are authorized to contribute the same amount you withdraw to your TFSA contribution of the year AFTER...

Ok, I know, I know, none of this is very easy, but it’s not complicated either.

We will go with this easy example, my very own, by example:

I currently hold, let’s say roughly, a 7 000$ into a TFSA invested in the Sprott Canadian Equity Fund. Easy right? Ok, and I have, for 2010, 7 000$ I can invest into RRSP in order to benefit from a tax break. Perfect! No problem. In order to make that 7 000$ RRSP contribution, I simply need to do a contribution in kind and the money will come the transfer from a TFSA status to a RRSP status for my investment hold in the Sprott Canadian Equity Fund. Isn’t that fantastic? But wait, because I am not done yet!

For 2011, it’s not simply a 5 000$ that I will be able to invest into my TFSA, but 5 000$ + 7 000$, for a total of 12 000$! But in order to do so, I need to do my 2010 RRSP contribution before the ending of 2010. Simple and easy.

Of course, you understand that all the point mentions above result of my own dreaming and you SHOULD do your own homework in order to avoid any disturbing financial situation. Thank you. ;0)

Tuesday, November 23, 2010

Emera awesome dividend!

I am writing this post from my iPod... I am out of laptop. I do not have computer problems on a regular basis, but now, things are pretty bad. I had problems since Sunday night, when I got the good idea to delete some programs of my computer to free some space. I might had delete something I shouldn't because even with an Internet connexion, I cannot access the Internet.. Lol!!!! It's just so hilarious in some way. I spot a mini laptop that I wanted for a long time. I might get it tomorrow morning, depending of my mood. My dividend income are doing well. I received 66.30$ from Emera and 48.34$ from Bell Aliant! I like my iPod, but writing on it on a long term basis is giving me a headache. Seem like overtime is over at work, I should be able to concentrate a bit more on my portfolio and my online stuff.

Friday, November 19, 2010

Sprott Physical Silver Trust UTS (PHS.U) perform well on the stock market

Today was quite a busy day as I manage to pay my credit lines and other credit cards payments early in the morning. The only bank that was open was TD Canada Trust. So I went there to pay my credit line. After what, I went to RBC Royal Bank. I guess they open at 9:00AM or something like it. After what, I wanted to pay my BMO Bank of Montreal line of credit… but the bank was close. BMO Bank of Montreal only opens at 10:00AM! TD Canada Trust is so much better – they open at 8AM! I find TD Canada Trust so great! This is a bank who had understood what workers like you and me need: early morning banking services! With BMO Bank of Montreal, the banking services are weak and old fashion: their branches open in the middle of the morning and close in the middle of the day… TD Canada Trust is the number 1 bank in Canada. Period.

Anyhow, while waiting for the BMO Bank of Montreal St-Catherine branch to open, I decided to stop by the Second Cup to buy a coffee (my favorite by the way) and try the WiFi on my iPod. It works great! I was able to follow my stocks, read the news… That iPod is very great and I will soon be looking at downloading a few games and application. I was a complete Apple illiterate before but now that I have my iPod, I find Apple very amazing. I knew of course Apple and the iPod before but I never taught it was actually that great. So go get yours!

I had the chance to order mine for free using rewards points from work. I am looking forward to get the iPad and, if possible, it will be in a close future. I just wonder if the price of the iPad will drop on Boxing Day. But I doubt. Anyhow, it’s something I will look for. The deal with for 3G connection with Rogers Communication for the iPad is very good. If I am not mistaking, I saw advertise 35$ per month for 5 Go! WOW! As you can see, I got really deep interested in the Apple stuff now.

Many things had been going on lately and I would just like to have more time to do everything I want. Currently, I had received 14.77$ in dividend from Pengrowth Energy Trust (PGF.UN). My non registered portfolio had finished the day at a good 70 219$. Nothing to compare to the good results of November 8, but still. Whenever exceeding the 70k is good enough for me!

My investment in the Sprott Physical Silver Trust UTS (PHS.U) is performing VERY well!!! Remember that earlier this month, I invested in 200 units of Sprott Physical Silver Trust UTS (PHS.U) at 10.73$? Well, the same units now worth 11.17$ each now.

I calculated that I should have enough cash by the beginning of December to invest in 100 other units of Sprott Physical Silver Trust UTS (PHS.U). That’s a good news isn’t?

Wednesday, November 17, 2010

I am now a new iPod owner!

I got my iPod 8GB! (The same one as advertise right over there!) It wasn’t easy to set it up. But that’s only because of me – my computer hard drivers are over loaded. I get rid of some programs I didn’t use for quite some time. And than it finally started to work! I got this iPod for free at work. The only thing I will be looking to buy is a case for it. The iPod do not come with a charger – its charge itself within 10 minutes on a computer. But a charger can be purchase separately.

I took a picture of myself with it and than I realize how that my hair look… strange (and I am desperately in need of a hair cut too!!). I can see 2 different colors in my hair: the great red coloration and my roots (my natural color). For now, I got tired of dying my hair so I decide not to color my hair anymore but such decision had a direct effect on myself, in the sense that I don’t like my hair right now and I prefer not to look to closely at the picture… It won’t be post here. I delete it. Just to conclude on this word: getting rid of an hair coloration is not an easy thing.

I wasn’t able to use the Wifi of my new iPod but I am going to bring it with be tomorrow and try to use it downtown Montreal to see I it actually work. I will also take pictures… Just can’t wait!

Things are going to be a bit rough for another investment this month. I am still waiting for my paycheck – I should get it by midnight or so. Problem being that after this pay, I will be receiving another one but… the problem being that I need to have enough to pay my December rent. So I prefer to wait next month before placing another investment.

And talking about investment, the iPod touch has a functionality allowing user to check the stock market. You can enter first your tickets, and within the power of a touch, check how well – or how bad lol… – your investments are doing. But to do this, the Wifi need to be working… I wasn’t able to set my tickets yet but I will be looking forward to do that tomorrow. I guess the best is to go with an iPhone because there’s no Wifi everywhere but I have to say, being disconnected sometimes from the stock market cannot hurt. And especially now knowing I have so much to pay for…

Take a look for yourself. Here’re the ugly bills:
-6.36$ on a Visa (I guess this was a little left over when I proceed with my latest credit card balance transfer).
-100.12$ on one of my credit line
-59.49$ on another Visa
-63$ on another credit line
-107$ on another credit line
-103$ on another credit line


And not to forget my rent… 555$ (but all included)…

No, there will be no upcoming investment for the month of November! What was I thinking? :0)))))

Sunday, November 14, 2010

More of the Sprott Physical Silver Trust (PHS.U) in my investment portfolio

I am getting tired of working during the weekend. But the effort worth it, as I probably be able to invest 1 000$ later on this week in the Sprott Physical Silver Trust (PHS.U)! I am very happy about it because I find that the Sprott Physical Silver Trust (PHS.U) bring what was missing in my investment portfolio: something strong and powerful. A good silver investment like the one offer by the Sprott Physical Silver Trust (PHS.U) was missing in my non registered portfolio. I had gold in my RRSP portfolio, but no trace of silver or gold in my non registered portfolio until… recently… And now, I am getting ready to welcome some brand new units of the Sprott Physical Silver Trust (PHS.U) in the everything! YEAHHH!!

Quiet weekend, but I change my routine: I took care of the cleaning and the grocery shopping on Saturday evening instead of the regular Sunday evening. I find it better, because on Sunday, I finish work later and also, this allows me to take a rest on Sunday evening, before starting all over again on Monday… By doing this, I am also trying to wake up earlier on Monday morning. Starting Monday, I will try to my overtime in the morning instead of the evening. While doing overtime hours in the evening, I sometime finish work very late and it’s doesn’t give me too much time to do other things during the day. But I now want to change my routine to be able to leave work earlier and work on my HubPages articles and blog among other, as my online profits are slowly growing and I really need new winter boots, among other things.

This weekend, I received in my TD Waterhouse broker account some good dividend payment from Pembina Pipeline Corporation (PPL) and Yellow Media Inc. (YLO):

Pembina Pipeline Corporation (PPL): 55.51$
Yellow Media Inc. (YLO): 31.01$

Not bad at all. Don’t you think so? But get ready for even better stuff because with the new units of Sprott Physical Silver Trust (PHS.U) I am going to add to my portfolio this week, the profits are going to be great! So get ready!

I got pretty shocking comment made under my review of The Idiot Millionaire of Derek Foster. People can get absolutely nuts when it come to money. Don’t you ever be surprise to hear pretty heavy stupid dumb comments when it comes to Derek Foster. This being said, the guy is a genius. I am going to make it very clear: Derek Foster books are what help me to become wealthier financially. I am not at a point where I am going to leave the workplace anytime soon but….. I find my portfolio growing stronger and stronger. But this is nothing. The best is to come.

Great gains coming ahead for the Sprott Inc. (SII)

My first ever stock purchase was 500 stocks of Sprott Inc. (SII) that I purchase, back in 2008 just before the stock market crash, at around 10$ per unit. Since that time, I had experiment the volatility of the market with Sprott Inc… I saw the stock price decreasing from 10$ to less than 4$... For quite sometime, Sprott Inc. stock remain under 5$. I never taught it was going to hit the old 10$ until… just recently. Why? Well, according to Tim Kiladze from the Globe & Mail, we own those recent gains to the launch of the Sprott Physical Gold Trust and the Sprott Physical Silver Trust.

Not too long ago, I invested in 200 units of the Sprott Physical Silver Trust (PHS.U). Gold and silver investments are both great ways to protect an investment portfolio from the volatility of the stock market. And some other investors might think the same way because the Sprott Physical Gold Trust and the Sprott Physical Silver Trust are 2 investment products who are having a real huge success right now.

If you want, you can invest in gold and silver the old fashion way, by buying certificates. But investing in product such are the Sprott Physical Gold Trust and the Sprott Physical Silver Trust is the easiest way to go: you can buy and sell whenever you want, as long as the stock market is open.

So far, I have a very good experience with the Sprott Physical Silver Trust (PHS.U). In one day, if I would have sold my units, I would have made a profit of more than 100$. I don’t plan to sell anything soon, but the possibility of making money is there. The Sprott Physical Gold Trust had been out there since a couple of months, but the Sprott Physical Silver Trust (PHS.U) had been offered since end of October 2010 only. This mean that the price of the Sprott Physical Silver Trust units is still low for now… but it won’t be the case forever. I saw the Sprott Physical Silver gaining 5% on one day only! My first purchase of Sprott Physical Silver Trust was made at 10.73$ per unit. I wish to make another investment in the Sprott Physical Silver Trust by next month.

At now 9.99$ per trade with TD Waterhouse, I will probably make an investment once per month, despite the low amount investing. Remember: diversification is your best friend when it comes to investing. Go out there, invest in the Sprott Physical Silver Trust and the Sprott Physical Gold Trust and make my Sprott Inc. (SII) gain the old 10$ per stock… PLEASE!!! :o)

Saturday, November 13, 2010

My review of Derek Foster latest book: The Idiot Millionaire

It wasn’t at the Montreal Chapters yet, so I order Derek Foster latest book online through his Web site last weekend. I am in Montreal, and I received the book on the following Wednesday. It took me a short 3 business days before being able to read the one and only useful financial book! I keep talking about Derek Foster over and over again on my blog but it’s for a good reason: Derek Foster books are what had made my profit EXPLODE! If it wouldn’t be of Derek Foster, I would still be investing in mutual funds – but mutual funds only. Would be surprise by the amount of people who had send me emails saying that Derek Foster books also help them in their financial journey.

Anyhow, this time, I am mentioning “the” name, Derek Foster, because I finish the reading of Derek Foster The Idiot Millionaire.

What’s Derek Foster The Idiot Millionaire book is about?

Well, The Idiot Millionaire is a nice continuation of Derek Foster first book Stop Working: Here’s how you can! If you a fan of the Stop Working or even if you are not aware of Derek Foster work, you can easily begin by reading The Idiot Millionaire, you won’t get lost. And actually, The Idiot Millionaire is even better because for the first time ever, Derek Foster provides the symbol ticket of the companies is taking about (because before, Derek Foster was not provided the ticket and I had to do my own search to find the ticket symbol!).

Because yes, just like in his previous books, Derek Foster provide an update version of his very own investment portfolio (very precious and valuable information!!). Also, Derek Foster propose a series of individual US and Canadian stocks for perfect, not to say “idiot”, but for people like me – and maybe like yourself who’s reading this blog right now – who are complete stranger to the stock market.

2010 mark by second year investing in the stock market and yes, even after a short but intense 2 year trading period, I still consider myself a complete idiot of the stock market. Being not sure about everything keeps me in a secure position where I can, as an “idiot” wanna be millionaire, react to anything that I wasn’t expecting – a laid off from BMO Bank of Montreal, of a 2 000 points loses from the TSX. The idiot attitude is actually the best attitude to have while investing because in the past couple of years, many events (like the 2008 market crash) had proof that even experts can be idiots. And we can certainly name here Henri-Paul Rousseau. Another stupid Quebeckers, just like my late fellow of BMO Bank of Montreal (BMO). When it come to finance, Quebeckers had no skills. Why? Because they have that super arrogant attitude toward everything. Quebeckers don’t have the “idiot” attitude and that’s why they are falling in everything they do and that’s exactly why they will keep falling. But that’s something else, isn’t

Ok, so here I am coming – back in 2008, Henri-Paul Rousseau was the president and chief executive officer of the Caisse de dépôt et placement du Québec. Actually, Henri-Paul Rousseau had been the president and chief executive officer of the Caisse de dépôt et placement du Québec for the period of 2002-2008. In 2008, following the bad management of Henri-Paul Rousseau and the heavy stock crash, the Caisse de dépôt et placement du Québec had lost more than 40 billion of dollars! Despite heavy losses, no criminal accusations had been put against Henri-Paul Rousseau. At the time of the events, Jean Charest was prime minister of Quebec – yes, the same one who had used his political power to name a few of his friends in important governmental position. The one and only Jean Charest, the one who fail to buy New Brunswick Energy Power.

In his fabulous The Idiot Millionaire, Derek Foster had made what I will consider – only from my personal point of view of course – a huge mistake. At page 51 of The Idiot Millionaire, Derek Foster name Power Financial (PWF) as a potential investment. Investing in Power Financial (PWF) would be a huge mistake! Please be aware that after leaving the Caisse de dépôt et placement du Québec in a rush in 2008, Henri-Paul Rousseau had been hired at the Power Financial (PWF) as a Vice-Chairman! Can you believe? This is the same guy who makes Quebeckers loose millions of dollars!

Power Financial (PWF) had that very conservative way to manage their business. They have a profitable business, but that’s only because the company is a major stockholder of other companies like Manuvie who currently are not doing well at all on the stock market right now.

I really appreciate Derek Foster work, but you definitively need to do your part of the search before investing! But don’t you ever worry, I am here to help you. I am going to show you “how you can” like a real New Brunswicker (because I am a real one).

Tuesday, November 9, 2010

Me and my debt: how about a margin account with TD Waterhouse?

Here it is, the update you were all waiting for… lol… The “debt situation” update for November 2010! I finish work early today and I am glad I did because tomorrow, some construction is being done in the area and they will be cutting the water at 9am… I usually wake up at 9:30-9:45am to take a shower… Just very glad I actually saw the notice. I sometime skip the morning shower, but never more than 2 mornings in the row…But do you really need more details on my personal hygiene?

As I previously said, I am at 45$k in debt, more exactly 45382.49$. Fact is, I don’t update my debt situation on a regular basis. What I prefer to update is, of course, my investment portfolio.

I hold 45 382.49$ in debt, and my investment portfolio is at 116 389.70$:

116 389.70$ - 45 382.49$ = 71 007.21$

My net worth is at 71 007.21$, which I find good. Not to forget also my dividend income, that is now at more than 5 000$. Nothing to compare to the Dividend Lover, but still…

For me, this overall scheme work quite well, in the sense that I can feel a balance between the debt and the investment. The 10 000$ is my latest credit line at RBC Royal Bank at an interest of 7.27%. At this point of the journey, I am looking forward to find a way to decrease, not my debt level, but the interest gain on the debt.

This was a suggestion made by the Dividend Lover himself a little while ago: to use margin money with TD Waterhouse to pay off debt. I keep thinking about this one over and over again and the plan could work. Here’s the deal: set up a margin account, use the margin money to pay off debt. In this case, I would start small. I would like to begin with a 5 000$ (or less, depending the amount available on the margin) to pay off my 5 000$ TD credit line at 8.75%. 8.75% is quite a huge interest rate. In case of a margin call, I would just reverse the money from the TD Canada Trust credit line to the TD Waterhouse margin account… In order words, the margin account would be used to pay off debt, and not to invest. I find this trick quite interesting. So far, what had stop me from opening a margin account is the responsibility of having to access my online broker account every single night in order to verify if I am on margin call terrify me. But now that fear is less because I told myself: I look into my broker account every single night of the week anyway. So looking into my stocks and dividend or checking if I am on a margin call or not – there’s no difference!

Margin borrowing is definitively something I am looking into to decrease the interest rate of some of my debt. So stay tune!

My debt situation in date of November 9, 2010

9 671.43$ at 4.75% (RSP credit line) = 459.39$ in annual interest
4 900$ at 4% (credit line) = 196$ in annual interest
7 957.05$ at 4.9% ending in April 2011 = 389.90$ in annual interest
4 911$ at 8.75% (credit line) = 429.71$ in annual interest
7 943.01$ at 5.50% (student loan) = 436.87$ in annual interest
10 000$ at 7.27% (credit line) = 727$ in annual interest

TOTAL: 45 382.49$
TOTAL in annual interest: 2 638.87$
[In date of November 9, 2010]

I am now at 116 389.70$

Today, a couple of extraordinary things happen. First the TSX close at it’s highest ever for 2010. The TSX had exceed the 13 000 points! That was for the first thing.

As for the second, I am very proud to announce that I now totally recover from my lost with the Sprott Canadian Equity Fund. About 2 years ago, I had invested 7 000$ in the Sprott Canadian Equity Fund. Currently, my investment in the Sprott mutual fund worth 7 044.99$! FINALLY! HOURRAA!

Third, I had reached the payout of 100$ (even a bit more) for my online incoming without writing anything new on HubPages. I am in need of a good pair of winter boots for this winter. I spot a nice Columbia one for 99.99$. I should be able to make my purchase shortly…

Fourth, the Consumers’ Waterheater Income Fund (CWI.UN) had close at more than 6$ per unit today! How great is that?

Fifth, I have to go to bed now if not I won’t be able to wake up tomorrow. Chow chow! (And yes, I am going to update the debt section, but it will be tomorrow or another day).

Thank you

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