Segregated funds of Manuvie

Last year, for my RRSP, I invest in segregated funds. It's seemed to be a good solution at first my RRSP. It's still is, at least for me. I have been reading, previously before about segregated funds, but they don't seem to be that much popular. One of the reasons for this is the high MER fees for the segregated funds. Some can reach 3.75%.

The reason why I invest with them is because I choose, for some funds, the "capitalisateur" option. I know in a year they will give an extra few bucks on the fund in a couple of years and the initial placement is 100% protect. I am a little bit confused about the "capitalisateur" option because I did that placement almost a year ago and I didn't really get through the documentation. Anyway, at the time, what was important for me is that the initial deposit was 100% protect for 2 segregated funds I pick. For the 3 other one, the initial investment is protect at 75%.

I read in Canadian Business that it wasn't a smart thing to invest in segregated funds because of their high fees. I post a new thread in Canadian Business. My posts can be see under "myfirst50000". I had post a thread were I call segregated funds "distinct funds" because in French, segregated funds are call "fonds distincts". It's just hilarious. I am practicing my English online in a very funny way. Or maybe should I write in French, but it will be very less challenging...

The question that still remains for me tonight is: which placement to choose from for my RRSP?

I am asking the question quite early, but I would like to place the money in RRSP at the beginning of January 2007. There's still time, but last year, I was busy like I am right now and I have wait at the last minute to place my money in the RRSP and it was quite frustrating after that to wait for the paper for the tax and everything.

My search for RRSP solution continue

I just don't want to be stuck like last year, being at the last minute to invest in my RRSP. I might try to invest in December. My day contract will end on December 4, so I will have time after that to do the little things I need to do.

Last year, for my RRSP, I went to Manuvie and I buy distinct funds. I sign for a period of 20 years. I will a future post on distinct funds and I will explain further why I pick distinct funds last year for my RRSP.

On of the reason is that I am searching for risk free investments for my RRSP. Since I don't have right now a stable situation, I have been going on like that on contract since I graduate, I am looking for risk free, capital guarantee investment. And exception for that might be Canadian dividends. The BMO Dividends appears to me to be a good one. I might invest half of the amount in Canadian Dividends (in a mutual fund) and the other half in a save money pocket product.

I continue my search for capital guaranteed product and it's exhausting me, since I don't want to rely only on advisor advice for this. It's my money and I want to make sure I am making the right decision. I have something like more than 5 000$ to play with for my RRSP. The question that still remains to me is: where should invest my RRSP money?

I know distinct funds fees are pretty high, but since a contract is sign, that include a specific period of time (for mines, I sign for about 20 years if I remember), I felt more safe about the investment.

Money in mutual funds still remains mysterious for me. I know the money is put at my name, put where's really the money? Is there a risk it can be stole? That's what I am really concern about. But at the same time, after noticing that some mutual funds have millions and millions put in them, I told myself that if their some many people who invest money in mutual funds, that's mean that they are safe products. But am I right? By safe product, I mean no one can touch the money except me, and that the money I gain from the funds remains mine, even if it's not money that I have in my bank account.

I am having the same scaring thoughts about stocks. What if the system crack down and loose everyone name and amount of money the people had made so far. Can this is something that could happen at any time? I just think too deeply and stocks and mutual funds still remain mysterious for me, even if I had bought my first mutual fund in 2005. I am just a beginner trying to make my way out, but comforting me by saying that millions of other person are doing the same thing as me and are making money not only from mutual funds, but also stocks, there should be no fear. The only thing is the fear remains and I believe it will still remains until I truly understand what stocks and mutual funds are really about.

About my RBC Global Resources Fund

On August 31, 2007, I invest 1 000$ in the RBC Global Resources Fund. Back then, we were still in the credit crisis and I wasn't sure if it was a good time to invest. I listen to my little voice and I invest a little 1 000$. It does appear to be one of the best decisions I have ever made.

On August 31, I buy a total of 28.39 units of the RBC Global Resources Fund at 35.2159$. That was in August 31, 2007. Now, in date of September 24, 2007, I made a total of 65.39$ with the RBC Global Resources Fund.

I just like mutual funds and I just don't understand why people try to avoid so many fees when buying mutual fund and I don't understand the "couch potato" thing, when people buy e funds or try to buy funds having the lowest fees. Focus should be put on how much the manager is able to get from is fund and not the fees.

I have a good example I can take from my Fonds Desjardins Fidelity Frontière Nord. this is the first fund I buy, back in 2006 I believe. I buy each part at 13$ and something, and now each unit worth 17,966$. I have made 1291.95$. I made 291.95$ with the fund, in date of today. The fees might be more than 2% for the fund, but I have here a really good Fidelity fund, and my money is well protecting in here. Does my money would be doing as well in a lower cost fund? I don't think so.

I will aloud any manager to take as much as 3% of my money if they can give me a fund that will be able to take it if I can say whenever the "bourse" crash down. Because of my lack of knowledge in stocks, I prefer to buy mutual funds, feel secured about my money and pay high fees. The fees for the RBC Global Resources are 2.40% or 2.18%. And I really don't care.

Thank you Mr. Chris Beer.

[Chris Beer is the main manager of the RBC Global Resources Fund]

A 4% savings account with RBC

It's seemed like RBC have it all! Good mutual funds, 10 000$ credit card and... high interest savings account!

If I will not use the 10 000 credit card I had with them, I will, instead, open a savings account. The interest is of 4%. On 9 459.13$, it's make a return of at least 378.37$. I can definitely add 378.37$ to my actual 28 704.03$ (in date of September 24, 2007). It' quite amazing that I have so much money. Having 28 000$ is like having a little fortune for myself.

But surprise, with that 378.37$, I can happily say that I have 29 082.40$... I don't have it yet, but hey, I have to motivate myself in a way in another, so I hope no one will mind if I change the actual 28 704.03$, for 29 082.40$... I am changing it right away... And I am forgiving the tax once again...

I learn that with PC, I could have a free bank account, but they don't offer it to Quebec residents, which is really too bad.

Same thing with ING Direct. ING have start offering mutual funds, but they only expose this offer in the English version of their Web site. It's because they do not sell mutual funds to Quebec residents. Being in Quebec is very frustrated for me because I pay more tax in my non RRSP investing and their are some good offers that I am missing.

I have 9 459.13$ sleeping in my bank account

I now, it's awful, I have thousands and thousands of dollars who are currently inactive. It's very bad, knowing that the money, put at 4.75% could give me 463.06$. But the real question that I have been asking myself is: how I was able to save so much! I am quite impress I have to say. And I am quite tired too. I have problems to stay awake starting at 11h in the morning. And the coffee at the coffee machine is not great and there's no place to buy coffee around. Its bushes all over the place. I have free transportation to get to the job.

I am quite busy and I will be until December. Until there, I will have to continue to work at 2 jobs at the same time, doing 33 hours at one and 37.5 hours at he other one. It's not as bad as it look since I can sleep in Sunday morning. It's just that I do not have too much time to deal with other things, like, for example, looking for an account that will keep my money save and will provide a high interest. I want to be able to have access to the money at any time, whenever I need it. And doing my laundry and my grocery can be quite challenging, especially when I decide to sleep in on Sunday. I begin to work at 12 on Sunday. Anyway, the work schedule is crazy and I am quite excited about my mutual funds. I made over 900$ by doing nothing except investing. I just knew that my mutual funds would get better. I just hate the summer that we had.

I have a ING account, but I don't want to use it. So I keep waiting, and I keep loosing money. I am waiting to see what RBC will have to offer when I will open an account with them and after that, I will see.

It's still easier to give a call to Caisse Desjardins and ask for the rate they have for one of those placement that you can have access to your money at anytime. Last time, I had a 2.5% with Desjardins and I could have access to my money at anytime. I just needed to give another call so the interest and the money go back in my regular account to access to the money.

As you can see, I am still a beginner and I have too much to do with my little money.

My Money News

Regular savings:

Bank account: 9 459.13$
ING Direct: 289.44$
TOTAL: 9 748.57$

Value of my non RRSP Mutual Funds:

RBC Global Resources fund: 1 050.61$
RBC U.S. Mid-Cap Equity Fund C$: 2 302.03$
RBC O'Shaughnessy Canadian Equity Fund: 3 418.03$
RBC O'Shaughnessy International Equity Fund: 971.87$
RBC O'Shaughnessy All-Canadian Equity Fund: 1 153.34$
Fonds Desjardins Fidelity Frontière Nord: 1 306.06$

TOTAL : 10 201.94$
Initial value: 9 300$
Total of money made in mutul funds: 901.94$

Money put in RRSP: 9 042.96$

TOTAL: 28 704.03$

PS: The money made in RRSP Placement is missing. I only provide the initial amount of money that has been invest.

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.

My savings until November 2007

I plan to be able to save around 4 000$ here by November 2007. By November, by savings should reach the 31 543.58$. I can't wait to be there. Unfortunately, after November, I won't work at my second job any longer, since my second job is a contract. I just can't wait to find myself another job. I hope it's going to be fine.

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.

Update regarding my credit

I have been working very hard those past couple of weeks. I did a few thing that could have make things bad for my credit, but I do not care that much. I don't plan to buy a house or condo anytime soon. I believe my credit record will be fix one of those days. I never get my credit check. It's the neck thing I have to do on my list.

Credit update:

Consolidation with AE at 7.99%: 2 200$
TD Visa: 0$
TD line of credit: 0$
CIBC Visa: 1 600$

I have 3 800$ in credit debt.

I just make the minimum payment on my CIBC Visa last month because I wanted to keep my money to buy new mutual funds at the Royal Bank. I have put 4 300$ in investment in August. I plan to make a payment of 1 000$ on my CIBC credit card. I am also planning to close my TD Visa because of the financial fees. The credit card debt should be soon be lower, at 2 800$.