Part 2: Debts + dividend: The 100 000$ assets strategy for 2010 in review

In the previous post, we saw the “debts” part. Now come the assets part. Are you ready? :0)

On date of February 17, 2010 we had a total assets of

67 753.62$.

To this current amount, we can add the 10 500$ we had invested today for our RSP.

67 753.62$ + 10 500$ = 78 253.62$

+ our annual dividend income of 3 177.56$ = 81 431.18$

And how about a value increase of 9% of our assets for 2010, would you like that?

81 431.18$ x 9% = 7 328.81$

81 431.18$ + 7 328.81$
= 88 759.99$

Better, but we are not there yet…. Missing 11 240.01$.

For the period of March-December 2010, we need to invest around 1 000$ per month. Truly possible.

The 100 000$ in assets is coming soon!

Debts and dividend: The 100 000$ assets strategy for 2010 in review

I really like to move on with this. In the previous post, I talk about a:
100 000$ in assets + 30 000$ in debts formula.

I want to elaborate more on my strategy.

We’ll start with the debts:

8 517.94$ at 4.75% = 404.60$ in annual interest
4 817.03$ at 3.5% = 168.60$ in annual interest
4 436.21$ at 3.9% = 173.01$ in annual interest
3 587.13$ at 8% = 286.97$ in annual interest
10 000$ at 4.75% = 475$ in annual interest

Total of debts: 31 358.31$
Total in annual interest rate: 1 508.18$

As you can see, my latest loan, my RSP loan, is set at 4.75%. It’s a bit high, but it’s been set up for 5 years. I could got a lower interest rate at only 3.25%, but it was only available with a one year loan and with a 10 000$ loan, it would had made too much for me in monthly payments. So I prefer this set-up, especially knowing that I will not face any penalties if I decide to reimburse earlier than 5 years or if I make any extra payments among the way. Great!

So this mean that overall, I am exceeding the 30 000$ in debts. I now have exactly 31 358.31$ in debts. Am I playing safe? Well, at this point, I have reached what I consider as being the maximum that I can hold in debts. After this RSP loan, I am not looking to increase more my level of debts. This is being safe. I know my limits. Ok.

As for the interest rate, annually it make an amount of 1 508.18$. That’s quite some money. But…. Remember our annual dividend earning? We are going to update it become some new stocks and units had recently join the gang. Here it is, our annual dividend income:

Sprott Inc. (SII): 505 stocks x 0.10$ + (let’s suppose Sprott Inc. will provide a special dividend like last year) = 126.25$
Bank of Nova Scotia (BNS): 105 stocks x 1.96$ = 205.80$
Methanex Corporation (MX): 103 stocks x 0.62$ = 63.86$
Fortis (FTS): 104 stocks x 1.12$ = 116.48$
Pembina Pipeline Income Fund (PIF.UN): 413 units x 1.56$ = 644.28$
Just Energy Income Fund (JE.UN): 423 stocks x 1.24$ + the 2010 special dividend =
606.72$
Yellow Pages Income Fund (YLO.UN): 429 units x 0.804$ = 344.92$
Bell Aliant Regional Communications Income Fund (BA.UN): 100 units x 2.904$ = 290.40$
Pengrowth Energy Trust (PGF.UN): 106 units x 0.84$ = 89.04$
Enbridge Income Fund (ENF.UN): 304 units x 1.152$ = 350.21$
Corby Distilleries (CDL.A): 100 stocks x 0.56$ = 56$
Davis + Henderson Income Fund (DHF.UN): 100 units x 1.836$ = 183.60$
= 3 077.56$
+ let’s add 100$, supposing the DRIP system will provide an extra income of 100$
= 3 177.56$

And 3 167.35$ - 1 508.18$ = 1 669.38$

Ok, I have more than 30 000$ in debts, in the deep red… but even at this time, my current annual dividend income provide me enough to cover up the cost of interest. So I am a winner all the way when it comes to outside of RSP dividend and debts. I am saying outside of RSP dividend become we will soon have a RSP dividend income, check it out, it’s coming soon! The only thing that disturb me is the 100$ fee that will make me TD Waterhouse pay for investing inside RSP. There’s no management fee at 25 000$. But less than 25 000$, the management fee is of 100$, which I find very extraordinary annoying. That’s why I haven’t been set-up for the RSP at TD Waterhouse yet. But at the same time, I just cannot wait to place more trades!!!

Anyhow, you now have an overall picture of my debts vs dividend kind of deal and you now know the reason why I am not in a major rush to pay off my debts.

10 500$ RSP contribution for 2009: now done!

Ok, so this is it, I got the RSP loan! I told you, I am invincible, and you better get use to it! lol!!!! I might have one of those super awesome credit score. Your credit score = your best friend when you want to enjoy the joy of leverage… Let’s clarify all this.

I had been approved for the 10 000$ RSP loan. Now, you want to know who’s been good enough with me Sunny alias The Dividend Girl to provide me a little something for my RSP contribution. Tadammmmmmm… And it is… TD Canada Trust! The happy winner of my RSP loan lol. Thank you TD Canada Trust thank you! lol…… And my payments only begin in May by the way. And I contribute 500$ from my own pockets. So my RSP contribution for my 2009 taxes is of 10 500$. I shouldn’t have taxes to pay after this contribution. That’s for sure.

I was really going completely nuts. I will never understand why I got refused by Bank of Nova Scotia for this loan. It was really wrong coming from them. Anyhow, who care about Bank of Nova Scotia when TD Canada Trust is willing to give me whatever I ever wanted: money, money, money! So for now, my portfolio is not moving from TD. Everything remains just where it is.

I got the RSP loan. Wow. I just cannot believe it. The payments are just a bit more than 100$ per month, so I am going to be just fine. And it’s only beginning starting in May. This loan is bringing us closer to our 100 000$ assets goal. I really believe I can make it happen for 2010. I will be 30 years old, we’ll be in 2010 and I will own 100 000$. Just amazingly wow! I am going to be able to relax and calm down a bit now that everything is all set for good. And its look like I am set for good with TD Canada Trust.

And if you find that this whole 100 000$ in assets + 30 000$ in debts formula doesn’t worth a damn, well, guess what, I am going to show that you’re wrong and, as always, that I am right lol. And it was really wrong, coming from Bank of Nova Scotia to refuse my RSP loan.

RSP 2009 contribution: the nightmare continue

I am just sooooooo tired right now. It didn’t work out at the Scotia Bank for my RSP loan. I was pretty disappointed because I had been waiting more than 1 week for it. I never been a customer at Bank of Scotia and I guess I will just never become one. I hold to many debts for the salary I own and my 44 000$ in stock couldn’t be taking as loan guarantee because they are stocks. If they would be GIC or other boring stuff like that or simply cash would had worked out. Bank of Nova Scotia doesn’t want my business? Who care! lol… I haven’t impress Bank of Scotia with my assets and my plan to transfer my assets to iTrade. But it doesn’t mean that the RSP loan project is ending here. Because as you know, here at My First 50 000$, we like to beat the steel when its hot. Doesn’t we? lol….

And guess what, as soon as I got the no as answer, I turn to another bank, explaining the situation. I was pretty lucky because a financial representative was available to take me between 2 appointments… I was very happy. I won’t reveal the name of the bank that impresses me that much until the deal is close and running. 10 500$ in RSP in quite some money. In case it doesn’t work out, I have a plan B, but I have to do quick… time is running so pass and dealing with those financial things that I am not that use too is quite exhausting. On top of that, I work today until 8:30pm… I just can’t wait for tomorrow. I need something to be done about all this.

Today, I learn something interesting by dealing with different banks: if a loan request had been refused at one specific bank, it doesn’t mean that another bank won’t approve you. Why? Because each banks seem to have their own rule. If you plan to proceed with a loan request at a bank where you do not hold already any credit, you need to have if not a great deal of cash, not too many debts around.

I am going to bed for now, I am completely burned out.

Moving on with my fantastic projects and why you should say no to BMO Bank of Montreal MasterCard

Ok, I go laid off from BMO Bank of Montreal, but it doesn’t mean it will stop me in my projects. I am actually better this way when it come to BMO Bank of Montreal. Want to know why? BMO Bank of Montreal recently had another bad idea, after my laid off. BMO Bank of Montreal came recently with this: they had reduced the payment on its very disgusting BMO Bank of Montreal MasterCard to 2%. This new measure is being valid for BMO Gold Air Miles MasterCard, BMO Air Miles MasterCard, BMO Premium CashBack MasterCard, BMO CashBack MasterCard, BMO SPC Air Miles MasterCard, BMO SPC CashBack MasterCard, BMO Preferred Rate MasterCard, BMO Prepaid Travel MasterCard, BMO U.S. Dollar MasterCard and BMO MasterCard for Business.

Usually, on credit card, customers had to pay the minimum of 3% of the balance they own on the credit card. Now, thinking being smart, BMO Bank of Montreal is reducing the payment to 2%. What’s supposed to be a good gesture is really not. And I am going to explain why. Credit card debts are not good debts. By reducing the minimum payment of their credit cards to 2%, BMO Bank of Montreal is helping Canadians to increase their level of debts. And nothing more than that.

Ok, you might told yourself, the poor girl had been laid off from BMO Bank of Montreal and she has more than 20 000$ in debts. Yes, I have more than 20 000$ in debts. But those debts are good debts. The interest rate for those debts is not 19.5% like on regular BMO Bank of Montreal MasterCard. Ok, BMO Bank of Montreal offers a 11.9% interest rate on credit card, but they charge for it. The fee is 35$ per year. Is that being brilliant? No that’s being dumb.

And what BMO Bank of Montreal customers do not know, unfortunately, is that BMO Bank of Montreal is not welling to help reducing their level of debts. BMO Bank of Montreal is actually going on the exact opposite direction. BMO Bank of Montreal hidding message is: « please fully use your credit card, reach your limit and enjoy. You don’t have to worry about one thing; you’ll only have to pay 2% of the full amount due. » This is how BMO Bank of Montreal is helping Canadians: by creating more debts. Which is really really bad. The exposure to heavy debt can rise easily with this new payment rule.

Credit card debts are the worst kind of debts an individual can hold. When it comes to credit products, you need to play smart. Instead of having a credit card with BMO MasterCard that you are paying 35$ per month to have the too high interest rate of 11.5%, why customer do not turn to TD Canada Trust an open a credit line at 8% interest rate, free of charge by the way. Why customers are willing to pay 35$ for a higher interest rate while its possible to get a lower interest rate, at no extra fee, with another bank? You have one life, one credit life. Do not let it ruin by BMO Bank of Montreal MasterCard. Be smart. And don’t forget to beat the steel when it’s hot… ok?

Bank of Nova Scotia services are poor

I am still waiting for my RSP loan. At this point, I am just willing to move forward and continue with TD because Bank of Nova Scotia are not good to deal with. The branch of Bank of Nova Scotia opening hours are horrible. It’s really difficult to take an appointment with somebody. Basicly, people at the branch are never available. And they seem extremely lazy. So try to have something done in those conditions! I first set up an apointment on Monday, I bring my papers and so on. A few days past. Than Wednesday, I had been told by a customer service representative over the phone that the lon request was ok… But since that time, nothing move. And when I called to have news of my loan today, I was told that I had to deal with the branch…. I also speak to a manager of the branch. We set up an apointment, but it will only be good for next week… Do you really think, dumb people of Bank of Nova Scotia that I am going to wait? Again! No way. iTrade can say good-bye to my awesome investment portfolio. I don’t want of iTrade anymore because I don’t like Bank of Nova Scotia way of doing business. Like for the manager, she's off today. This is the RSP season and you are taking off? Such a big bunch of idiots out there. Try to avoid the Bank of Nova Scotia of McGill College in Montreal. Their service is really poor.

Bell Aliant declared February dividend

Oh yeah! And this one is a good one. How about 24.17 cents per unit? How do you feel about getting a free 24.17 cents per unit hold of Bell Aliant Regional Communications Income Fund (BA.UN)? Personally, I do not feel any inconvenient at receiving free money, especially a major 24.17 cents dividend passive income per unit hold.

On March 15, 2010, I will receive 24.17$ from Bell Aliant Regional Communications Income Fund (BA.UN). Rock on.

It does actually make me laugh when I learn of their Small Unitholder Selling Program. Who in the world would be dumb enough to sell any of those precious Bell Aliant Regional Communications Fund units? They are as precious as gold…

Sprott Inc. (SII) 2009 fourth quarter dividend

Hellooooo dividend money! I really like that stuff. Sprott Inc. (SII) declared a dividend 2.5 cents per stocks. The dividend should be paid on March 16, 2010. Which mean we will received 12.63$ - which mean we will welcome 4 to 5 free stocks in our investment portfolio.

$$$

Great news regarding Yellow Pages Income Fund (YLO.UN)

Yellow Pages Income Fund (YLO.UN) is doing better on the TSX. I first invested 2 224.47$ in Yellow Pages Income Fund (YLO.UN) a couple of months ago. I always believe in this company as I find the dividend really good for the stock price value. Also, it’s a Montreal-based company, and I live in Montreal. So let’s say that from there, me and Yellow Pages Income Fund were set for a long-term relationship. Ever since, it’s been love, love, love.

Want to know why? As I explain, I first invested 2 224.47$ in Yellow Pages Income Fund (YLO.UN). Not that much, would you say, but all those « not that much » form my investment portfolio are part of my investment portfolio. In date of today, my investment worth 2 505.36$. This represent a nice increase of 280.89$ right there. Kind of nice. Yellow Pages Income Fund (YLO.UN) units value is currently at 5.84$, and I am confident that the company will soon reach the 6$ per unit.

Ok, so for now, Yellow Pages Income Fund (YLO.UN) is a .UN investment like I like to call them. But you don’t have to worry about the Yellow Pages Income Fund situation according to Gordon Pape. I regularly read Gordon Pape articles through my TD Waterhouse online broker account. So according to Gordon Pape, Yellow Pages Income Fund (YLO.UN) distribution will remain the same. Isn’t fantastic? What small investors worry about are distributions and with Yellow Pages Income Fund (YLO.UN), there’s really nothing to worry about. There’s again, it’s according to Gordon Pape. And The Dividend Girl lol.

The 100 000$ investment portfolio goal: the dream is slowly taking form

Teeth, sorry man, but I got approve for the RSP loan (read previous comments in one of recent post to have an idea of who’s Teeth).

Since Monday, I cannot think, I only have one thing on mind: will I get approve for my RSP loan? Well, I gave a call to the representative this morning since today Wednesday was supposed to be the day. But of course, it didn’t happen this way. The representative told me I had to wait until Friday. So I said ok… and went to work. I was upset because I hold number of assets, like I am f****** rich lol, I am working and so on. So what’s taking so long? Why couldn’t I get approve for a RSP loan right away? Is it because I am not rich enough? Geesssssss those Quebeckers are definitely going to kill me!

So I did the following: I gave a call to the bank customer service. And there, what a surprise: I learn that I got approve for a 7 600$ RSP loan! But the representative at the branch never told me about this approval. At the branch, I had been told that I had been refused, and that they had to send my request I don’t know where so I can get approve. Never it was questioned of a 7 600$ RSP loan at anytime. Taught I was going to get ripped off by Quebeckers? Helloooo not me.

Anyhow, I was quitted happy to learn the great news. When I spoke to the person of the bank customer service over the phone, it’s only there that I had been told that I had been approved, but not for the full amount that I requested, 10 500$. The representative told me that the approval waiting delay was taking longer because they were looking forward to approve me for 11 000$ RSP loan. Ok… But I haven’t been giving this information by the representative at the bank…

Lesson learns: There’s basically jerks a bit everywhere and I strongly recommend to anyone to deal over the phone for loans or whatever else because face-to-face, some bankers really do not have it. One way or the other, at the end, I am getting approved. So why in the world those bankers are willing to make me loose my time? JERKS. I already hate my new bank as you can see.

Later on during the afternoon, I received a message on my famous pager from the branch representative. He sound pretty pissed off that I call the customer service. He re-confirms again that I was going to get approve on Friday and so on and that he had made it clear… I am so terribly upset that I am going to visit the branch tomorrow and make hear the message of that representative to the director of the branch. JERK. JERK. JERK. JERK.

I have enough of stupid Quebeckers. But one day, I will have my revenge.

Just to talk about something else than stupid Quebeckers, this is never been seen before on My First 50 000$ blog: my stocks and units investment portfolio is almost at 40 000$. Today was an extraordinary day on the stock market. I got approved for the RSP loan. I am now at 67 753.62$ in assets. I am invincible. I am the best. I am a genius.

Now, tell me who’s the best between those guys of BMO Bank of Montreal (my late employer who unfairly lay off me) or me Sunny alias The Dividend Girl? Can someone tell me? Who’s the best?