I had a very good times in the past couple days in Montreal. After the Francopholies came the International Jazz Festival. Night after night after night... free amazing outdoor shows. So that's why you haven't heard too much of me. And I began a new position at work with a new schedule. I have to get up one hour earlier and I still have a bit of problem with that, going to work in taxi a few times. Its going well however. I am now back in front of my laptop, checking on my portfolio and a few other things.
I have to admit, I haven't check on my stock these past couple of days, but I have checked on the stock market. The market continue its strange behavior. The no direction thing is still going on.
My non-registered portfolio is at $117 619.78, -3.42%. I have left $8 982.15 on my margin. And I just begin to understand why the value of what is left as margin is so low. Its partly because Chorus Aviation Inc. (CHR.B), Data Group Inc. (DGI), Sprott Inc. (SII) have no longer any margin loan value. However, all combine together, these 3 stocks bring in $426.96 in annual dividend income.
Since those stocks have no loan value and that I still have contribution room left over in my TFSA, its now time to take advantage of the situation and have those stocks transfer in my TFSA so the dividend earn can be tax free. $426.96 is almost a week of salary after taxes.
Once I completed this transaction, my margin loan value will be exactly the same and on top of it, a good amount of income will become tax free. Let say I taking a profit of a situation on which I should only lose on.
I just hang up with a nice TD Waterhouse representative and I got all of my shares of CHR.B, DGI and SII transferred over my TFSA, a $4 313.17 contribution. I didn't want to sell those stocks so best thing to do is to transfer over the TFSA. There will be no capital gain to be pay on the transfer because all of those stocks are down... but at least, the dividend income will be tax free.
Now if you don't mind, I will now get ready to enjoy Montreal hot weather and became a fresh claim under the sun and between sunflowers.
I am leaving but we still have the celebrations over the 600 000 page views that is coming up soon over the weekend so keep reading.
the income is basic return of your own investment. the stock has no loan value because they are risky and worth not much...
ReplyDeletemargin level dangerously low. you should have sell those losers instead and increase your loan margin above 10,000. in fact you are living life dangerously with all that margin and debt. no tangible assets
ReplyDeletejust had to add to the BCE stocks, they are also owners , 37.5% of the Maple Leafs sports and entertainment. they own astral media , they own the business channel on tv , they own most of bell aliant and they pay over 5% interest . i think if verizon comes in,,that means Telus should be able to buy that mobile company...4 competitors , one thing too, they said that verizon has no experience in bundling pkg., no experiences with small towns , so i think BCE and Telus are good stocks.
ReplyDeleteBLAST FROM THE PAST
ReplyDeletehttp://www.myfirst50000.com/2011/12/why-you-shouldnt-be-investing-in-bce.html
YOU SAID IT YOURSELF YOU SHOULD NOT INVEST IN BCE LOL!!!
BCE
ReplyDeleteyou have short memory, you wrote why you should not invest on this very blog... now the stock is super high, now you recommend to buy what's up with that... also back two years ago, it was much lower than this...
http://www.myfirst50000.com/2011/12/why-you-shouldnt-be-investing-in-bce.html
Why you shouldn’t be investing in BCE Inc. (BCE)
ReplyDeleteAt this time, I am in a phase were I don’t know what to do with my money. I use to invest every months or so whenever I had money available. What happen these past couple days is that I have money available, but I no longer know in what to invest. Because of a margin account situation, I always invest in my non-registered account. Forget about TFSA. The ultimate goal had become to keep me out of a margin call. Also, because ambitious has no end, I also want to see the value of my margin account increased and of course, I also want to see the value of my portfolio increased.
Overall, the fun is to invest-invest-invest! Part of this certainly comes from the fact that I have a small net worth (close to 70k at this time). For someone of my age (31), a 70k is really not that much. However, that 70k satisfy me. At first, I only wanted to invest to have a bit of cash on the side. But years past – maybe too quickly – but I realize how easy it was to build a portfolio. So I just never stop. At least until recently. It has become more difficult than ever to find something to invest in. A reader has suggested Visa (V). Nice idea, but Visa trades in US dollars. I am exclusively looking for real Canuck stuff at this time. Don’t forget my margin situation in my broker account please.
Ok, so all this to say that despite not knowing in what to invest new anymore, well, today, I learned that BCE Inc. (BCE) had increased its dividend of 5%. However, BCE Inc. (BCE) is of noooooo interest for me. Why? I am going to explain, as always. You know that this is the blog to read when it comes to personal finance right?
First of all, BCE Inc. (BCE) headquarters are located in Montreal, Quebec province. What you need to know is that Quebeckers are extremely selfish individuals. There’s a lot of corruption going on in Quebec, we recently saw that in the construction sector and even more recently, in Quebec public kindergartens. In Quebec, citizens accept living in corruption. You’ll learn about their corrupt system in the news. That’s because they are proud of it. They are proud of their shit like I am proud of my 70k net worth. Quebeckers like to expose their corruption, but they are not willing to see it change.
Quebeckers are not good Canadian citizens. They are cheaters and liars and have to respect to Canadian roots. Bloc Québécois, Parti Québécois, Pauline Marois, Gilles Duceppe, just to name a few organizations and a few names, just a few examples of Quebec misery, cheaters to the Canadian country, not loyals, cheaters, liars, corruptive. In their willingness to succeed, Quebeckers messed out badly. In Quebec province, the Québec sovereignty movement is getting stronger.
As an investor, it’s extremely important to know exactly what’s going with Quebec province.
ReplyDeleteAre you going to invest in companies located in Quebec knowing exactly how badly that province is manage. The massive part of Quebec is not proud of being part from Canada. Our dollars are Canadian dollars. It’s more than important to keep investing exclusively in companies located outside Quebec province.
What’s going to happen once Quebec will become a country? If you invest in a company that has its headquarters in Quebec province, you increase your chances of losing all of your capital. You are investing in a province that doesn’t believe in the power of Canada. You are investing in a disrespectful province. In a province of cheaters. From my experience, all the companies based in Quebec province that I had invested in haven’t performed too well. Need an example? Yellow Media Inc. (YLO). Timminco (TIM). Those were 2 disastrous Quebec stock pick.
Don’t take your Canadian bucks to increase the capital value of Quebec province. That will be very wrong.
One day or the other, BCE Inc. (BCE) will decrease in value. And when it will happen, I will be protected because I do not hold any BCE stocks in my portfolio.
Invest safely and wisely. Canadian bucks need to remain FOR and IN Canada for Canadian companies.
Forget about BCE. It’s recent dividend increased is just a tactic to distract investors from the fact that the company is located in Quebec.
Didn't I warn you about the stocks you own were at risk of being having their margin values reduced, and look at how quickly it happens? :)
ReplyDeleteAlso, since you did a contribution in kind to your tfsa, and the stocks were down, you're not eligible for a capital loss! It would have made more sense to sell in your nonreg and get the capital loss and transfer the cash and rebuy!
One error after another..
I hope the CRA is watching this blog... I'm assuming you used borrowed money for those investments you transferred to your TFSA. All that money is no longer tax-deductible...
ReplyDeleteTransfer shares to your registered account, but not at a loss!
ReplyDeleteIf you hold shares of corporations in a non-registered investment account, you can use them as your registered retirement savings plan (RRSP) contribution by transferring them to your RRSP as an in kind contribution. You can also use them as a contribution (not tax deductible) to your tax-free savings account (TFSA), or some other registered accounts. Your contribution amount is the market value at the time of the transfer. If you are transferring a bond, the market value will include any accrued interest. For tax purposes, you have effectively disposed of the shares (deemed disposition), so any gain will be taxable to you. However, if you have a loss on shares transferred to any of the registered accounts noted below, the loss is not deductible. In most cases, unless the loss is very small, it would be best to sell the shares and contribute the cash to the registered account. If you wish to repurchase the same shares in the registered account, do not do this until after 30 days. Otherwise the loss will be considered a superficial loss and will be disallowed.
Losses are not deductible on dispositions of property to
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deferred profit sharing plan (DPSP)
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registered disability savings plan (RDSP)
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registered retirement income fund (RRIF) or
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tax-free savings account (TFSA)
under which the taxpayer is a beneficiary or immediately after the disposition becomes a beneficiary.
Losses are not deductible on dispositions of property to a registered retirement savings plan (RRSP) if the taxpayer or taxpayer's spouse or common-law partner is an annuitant, or becomes an annuitant within 60 days after the end of the taxation year.
You may decide for some reason to make a transfer of a loss investment to this type of account. If so, when completing your tax return, do not enter this disposal on your Schedule 3, as the loss cannot be claimed.
Tax tip: If you have a loss on shares, don't transfer them to your RRSP or TFSA.
http://www.taxtips.ca/personaltax/investing/transfersharestorrsp.htm
ReplyDeleteread this
Tax tip: If you have a loss on shares, don't transfer them to your RRSP or TFSA.
better suggestion, sell those stocks at a loss, transfer cash to your tfsa OR pay down the margin account. If you desperately want to invest, BUY something better. You have the mentality that you need to break even on those losers, this is why on impulse you transferred in kind in your TFSA... now you cannot recoup that lost, that was an airhead move. What an error. Now you want to recoup the losses in your tfsa. You have to realize, you can't win on every stock picks and also there's high chance that you will never break even, take the loss and move on.
ReplyDeleteInvestment is not gambling, it is also a business. You have to respect
ReplyDeleteYou loss big time by transferring these stocks to your TFSA because you can't claim the huge loss on your income taxes. Selling it and transferring the cash in TFSA wouldn't work also as you have to wait at least 30 days before you can re-buy if you want to claim the capital loss on your income taxes.
ReplyDeleteAs far as BCE, readers should know by now that Sunny just rambles on and talk nonsense to get the readers attention. She says one thing and does the opposite.
Sadly Sunny-I have to agree with what the anonymous author(s)are trying to tell you. Successful investing isn't just about one method of investing but rather using many different methods of investing..and if you want average returns invest by reading the papers, blogs, other stock tips that you get from TD Waterhouse. But hey, if that's your investing style, then go for it. Just don't be surprised at the average results you get. After all didn't it take Derek Foster 10+ years to become financially independent?(And that was when DRIP investing wasn't in style) And Mr. Foster didn't have debt to deal with in the first place. It's your debts that will keep you a financial slave-you said so yourself-why get a mortgage?
ReplyDeleteDebt always bites you in the behind-sooner or later you will get bitten..
Mark