Some good news

I had a couple of things done I wanted to do during those last days. I had opened a banking account with RBC. That account is free for me since I had opened a credit card (that I never used and don’t plan ever to use by the way lol) + mutual funds with them. I just went to the RBC site earlier, and I can see my investments. I can also sell my investments at any time. Which is great, because I can wait to get ride of the RBC O'Shaughnessy International Equity Fund. Other than that, I plan to keep the other mutual funds I had with them.

I understand I should probably get ride of them and sale them all, but I prefer to keep them as I feel I don’t have that much money to invest in stocks and if something would had to happen to my stocks whatever the reason could be, I wouldn’t like to be out of money. But I might no more invest in mutual funds.

Regarding my account at TD Waterhouse, I decide to keep the account and use it, even for the reason exposed in the previous post, I really wanted to close it. The thing is that I investigated. If I decide to close the account TD Waterhouse staff will have access to my information for a period of 1 or 2 years. After what, my account will go into their archives for 7 years. After 7 years, but only after 7 years, everything disappears. This is the difficult part for me. That’s the only reason why I will keep the account. And another reason is that since I subscribed to eService, I won’t get any fees for being inactive. So I decide to keep the account. I won’t do what that poor Lisa O’Toole tell me to do (I suggest to read the previous post to understand). I know I shouldn’t complain, but investments are the only thing in my life I have totally the control on, and I want to keep it that way. I don’t want idiot to tell to send my SIN and another ID via the mail. Which I find totally stupid, knowing I had presented those items once I open the account. Anyway, I understand. And no one else seem to understand, especially TD Waterhouse agent, I have to tell. And I have a lot to tell. I won’t put my trust in them to get some advices on how to invest my money. Because I worth more than that.

I had good news this last Friday; I got a call from the place where I used to work on Saturday and Sunday. It’s seemed like they now have work for me… And I now will have 3 jobs. It’s really too bad it’s coming back now, especially during summer time. But I don’t care that much, the only thing I care about, as usual, is the money. I expect to earn 761$ after taxes weekly. This is very good. So this weekend was my last off weekend. I went to the movie and I did a bit of shopping and it was all, after doing the usual.

I also put an extra 4 000$ in the TD Waterhouse account. So now I have 9 000$ to purchase stocks. And I am kind of lost at this point. So iShares or stocks, I am kind of desperate. The best option should be stocks I believe, and maybe I should stick on the ones of Derek Foster book, even if after what happen at TD Waterhouse, I really begin to hate the man. The thing is he explain that he start with a TD Waterhouse account and the eServices, without suggesting his readers to do the same. At some point, the guy has responsibilities toward his readers, even if his books start with a disclaimer. And especially knowing his books are bestsellers. I just hope he is saying right.

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.

My first 10 000$ credit card

I just received last week my first credit card of 10 000$. I received it from RBC. RBC is like my favorite bank right now. I don't plan to use that credit card. The interests are very high, 18.9%, just like my CIBC Visa that I currently used for my regular purchasing. I will leave that credit card in my drawer. I use it to buy everything, from groceries to the latest biography of Brian Mulroney that I just met today at the library Renaud-Bray in Montreal... lol

The Visa Caisse Desjardins offer a credit card at 9 and something percent interest. I ask for a credit card with RBC because since I have more than 5 000$ with them in mutual fund, with a credit card, I can have a free bank account and a special account where I can buy my mutual funds by myself. I will no longer need to get through a representative, which is great, because every time I went to buy a fund that I really want and that I am excited about, I am having problems. Representatives have to respect different % in the mutual funds you buy, so you cannot always have the funds you want. It's the rule, but let's breaks them and makes things on my own little way.

For example, the first fund I buy was RBC O'Shaughnessy Canadian Equity Fund. I gave 2 000$ on that first time. Later on, I put another 1 000$ in the fund, just before it's close to new investments. After that, I wanted to buy the RBC Global Resources fund, but I was told I couldn't. Anyway, it gets very annoying and last time I went to RBC, I had to buy a US mutual fund so I could buy my Global Resources. I had too much put in Canadian funds I was told. But yeah, Canadian funds aren't the best of the word? I believe they are.

I hate my RBC O'Shaughnessy International Equity Fund and my RBC U.S. Mid-Cap Equity Fund C$. I will get rid of those as soon as I can. For one, the International Equity Fund, the 90 days period is over so I can sell it whenever I want. But in date of today, the initial 1 000$ I invest in it only worth something like 971.14$. So I won't sold it now, I don't want to loose any money. I just hate the situation. I dislike International Fund. I also have distinct fund that buy at Manuvie and unfortunately, I have buy also there International distinct funds and I have to say I regret. I know I have to buy something else than Canadian fund, but International and US funds are just not that great. I also plan to get rid of my US fund in Canadian $ as soon as possible. But for that fund, I have to wait for 90 days or something like that before selling it. It's really killing me.

I am interest in China, Latina and Precious Metals Fund. RBC should offer China and Latina Fund. I have an eye on the China Fund of HSBC. The one of BMO seem to be great to. For Latina, CIBC seems to have a great one. Also TD.

Now that I have a RBC credit card, I just need to fix an appointment to open a bank account and the other special account, all for free. But that can wait, I don't need it now. I still have money to invest, but I am too busy with other thing for now. I just can’t wait for my first 50 000$. When I will reach my first 50 000$, everything will be a lot easier because the amount of money made on the 50 000$ will be a great return.

New best buy

My new August 2007 mutual funds:

RBC Global Resources Fund: 1 000$
RBC U.S. Mid-Cap Equity Fund C$: 2 300$

Those are ad to my previous investments:

RBC O'Shaughnessy Canadian Equity Fund: 3 000$
RBC O'Shaughnessy International Equity Fund: 1 000$
RBC O'Shaughnessy All-Canadian Equity Fund: 1 100$
Fonds Desjardins Fidelity Frontière Nord: 1 000$

Total of non RRSP investment: 9 400$

I am just putting here the amount of the initial investment in here. I prefer not to calculate what they worth now, because are of those funds above are in red right now. I am closing my eyes for now and I will check the value of my funds when they will be back in green.