Money, dividend and budgeting for the month of May

The month of April is not over yet but I am already thinking my budget for May. Why? In May, I will start paying on my 10 000$ RSP loan. The monthly payment is about 107$. Also, one of my credit card balance transfer offer at 3.9% is getting to expire on May. For the first time ever, I am not quite happy with CIBC Visa because I had been told 2 different things by 2 reps… I should get organize better, but I got busy with all kind of different thing, not to forget about my laid off of BMO Bank of Montreal. Please do not forget about that one for me ok? Since I got laid off from BMO Bank of Montreal, I didn’t purchase a single piece of clothes. No new jeans, no new t-shirts, no new bra… NOTHING lol.. Not even a hair cut…. Talking about living miserably….

Financial success reside in a budget, and sometime on a really tight one

I write it on HubPages before, I am a natural saver. This allows me to manage everything without budgeting. The budget is kind of in my head and I never needed to write down expenses, etc… But my newest loan payment coming by, I needed to review my situation just to make sure everything fit at the right place, that I got laid off from BMO Bank of Montreal or not. Ok?

So what’s going to happen, several months after my laid off of BMO Bank of Montreal? Well, just the usual. Let’s check it out:

RSP credit line loan: 107$
Credit line 1: 150$
Credit line 2: 100$
Student loan: 100$
Visa 1: 150$
Visa 2: 100$
TOTAL: 707$

The minimum payment required on my debts is of 707$. To this amount we need to add my rent, 545$, and my Internet, 35$. All combine together, it will make 1 287$. To this amount, I add 400$ more groceries, coffees and everything else. It bring the total to 1 687$. Did you notice something? I remove the metro pass!

Talking about living frugally: I find an easy way to save 65$ per month

This is kind of a drastic choice for me who always enjoy traveling in the Montreal metro but as my budget is getting tighter and that I need to exercise more, anything I can do to save money and getting a bit more in shape is more than welcome. I just cannot deprive myself on coffees and other little eating out because it would just make me feel more miserable that what I am experimenting right now lol. So starting May 2010, no more metro pass! I am about 45 minutes walking distance from my day-time work. My weekend job is actually a walking distance away from my apartment. I can easily live without a metro pass. Just going to be rough for the first couple of days I guess. But it worth the try, 65$ is kind of good money. I am happy that I cross over this solution. Just for the period of May-November itself, I could save 455$.

Pembina Pipeline Income Fund (PIF.UN) dividends are in the house!

I just received 53.69$ in dividend from Pembina Pipeline Income Fund (PIF.UN). Strangely, the DRIP is on. I am earning actually 3 extra units of PIF.UN. I will have to call T D Waterhouse because last month, my PIF.UN dividend didn’t DRIP. I previously call T D Waterhouse about it, and nothing had been done. On a certain way, some brokers of T D Waterhouse are not willing do no anything for you except selling or buying stocks for you as they can earned commission. That’s how it work at T D Waterhouse. If you have T D Waterhouse as broker, check your statement very carefully because after 60 days, if there’s a mistake of what so ever, T D Waterhouse won’t do anything. They are like that. In a way, T D Waterhouse and BMO Bank of Montreal share a lot of things. Both institution kind of suck on their own little way.

Anyhow, I had been thinking, calculating…

I have actually other projects on the way!

Yeahhhh!

Maximize my TFSA for 2010: Last year, I did some mistake with my TFSA. I taught withdraw made from the TFSA could be invested on the same year, but its not the case. Withdraw can be reinvested yes, but only 1 year after… I just waiting for my tax papers and I am going to look I what I did last year.. I am still confused about what I did, one year later… Isn’t a problem to be rich?

100 new stocks of Corby Distilleries Limited (CDL.A): So far, Corby Distilleries Limited (CDL.A) had brought great stability to my portfolio. I won’t be able to invest in 100 stocks of Corby Distilleries Limited (CDL.A) for next month, but it might be good for the month of June! This will allow me to benefit from the DRIP being offer so far from Corby Distilleries Limited (CDL.A). I should be able to earn at least 1 extra stock per distribution period.

Applying to a credit card increase at TD Visa: I have more than 70 000$ invested at T D Waterhouse, if it’s not even to get a 3 000$ limit increase at TD Visa… But we never know right? This is something I didn’t do yet but its something I will do online before the end of the weekend. And what if my credit line limit increase got refused? Solution: turning my current CIBC Dividend Visa card into one of CIBC credit card at an interest rate of 11%. My 3.9% interest on an amount of 2 735.78$ is ending on May. Close to 3 000$, the amount is kind of huge, but no way I am going to sell one of my investment without hitting first my first 100 000$. It’s all in the head; it’s stupid and hot at the same time. But I have a NO SELL rule…. I could ask for a credit line at RBC or something else, but I do not want to hurt my credit score too much. Not that I care that much about my credit score, but if I ma being refused a credit card limit increase, what are my change to get credit someplace else? Isn’t a difficult situation to deal with?

But we experience this when we applied for a RSP loan: I got refused at Bank of Scotia (they apparently didn’t give a damn about my 100 000$ assets project) but got approved at TD Canada Trust. This meaning that if you are getting refuse at some place, doesn’t mean you will automatically get refused at another place. My best advice: go for it and let it go! That’s the advice I am following myself.

At this point, the situation is pathetic, but I don’t want to sell, it’s my own fault. Just because of a revenge plan I have in the back of my head, spinning lol. Being rich is not as easy as it look like.

I could make a happy living on 1 000$ per month living on dividend

Living on dividend is possible. 1 000$ is not that much of money needed. Only 12 000$ in dividend earning is needed. But before getting into it, I will need to clear off all debts, have extra cash available as an emergency funds (I was thinking of 20 000$) and, of course, reach 12 000$ in annual dividend income. I won’t be able to achieve this in the upcoming year, but what about 3 or 4 years from now? It could work out, but still a lot of work ahead.

Building financial wealth one investment at a time

Early this morning before going to wok, I had placed my order to purchase 200 units of Consumers’ Waterheater Income Fund (CWI.UN). I place the price limit at 5.30$. My order went through at the opening, which was 5.27$. Consumers’ Waterheater Income Fund (CWI.UN) close the day at 5.22$. I had Consumers’ Waterheater Income Fund (CWI.UN) in my investment portfolio before, but in the TFSA. Now, I also hold Consumers’ Waterheater Income Fund (CWI.UN) in the non registered part of my portfolio.

Investing in the stock market is really addictive. I could have leaved the money on my credit line, it would had made more sense, but I just couldn’t. I invested in 200 units of Consumers’ Waterheater Income Fund (CWI.UN) because I wanted to do something out of this 1 000$. At the end, I currently have 265$ in emergency fund lol. I can say that right now, I am living paycheck to paycheck. It’s a personal choice. I really want to hit the 100 000.00$ in assets by 2010. It’s just something I had in mind for a couple of months now, even before my BMO Bank of Montreal adventure. Being laid off of BMO Bank of Montreal didn’t change anything. I still can invest and build a future financial wealth even after being laid off of BMO Bank of Montreal. And the future is here… or close by.

Ok, so currently, my non registered portfolio is at 48 675.30$. This being after, of course, my newest investment of 1 048$ in the Consumers’ Waterheater Income Fund (CWI.UN). Yeah!

48 675.30$ - 1 048$ = 47 627.30$

47 627.30$ is the value of my non registered portfolio where it was before adding on 200 units of CWI.UN. 47 627.30$ represent a lost of 537.47$ compare to April 5. Back than, I was at an outstanding, almost perfect 48 164.77$. Loosing 537.46$ is not a drastic lost. The value of my investments will go up again, its just a matter of time. I like it very much when everything goes up. But when it goes down, it goes down.

Oh, and I almost forgot: Welcome again, Consumers’ Waterheater Income Fund (CWI.UN) in my investment portfolio!

Another investment, another step forward to My First 100 000.00$.

I had received Premium Brands Holdings Corporation (PBH) and Yellow Pages Income Fund (YLO.UN) dividend

Today, I had received 58.80$ from Premium Brands Holdings Corporation (PBH) and 28.88$ from Yellow Pages Income Fund (YLO.UN) in dividend income. I have received the money in cash in my broker account. Really soon, the cash will transform itself in stocks and units. I should receive 4 new Yellow Pages Income Fund and 4 new stocks of Premium Brands Holdings Corporation (PBH). I just love the DRIP system. We are talking here about just a few stocks and units, but that’s enough to make me happy.

And what about a new investment?

I didn’t apply online to a credit card increase at TD yet. I had been quite busy with my late blog domain address and other thing. I supposed to receive a return from the federal government. I should received around 130$ if I remember. I am in real need of a new pair of running shoes. Just when I promise myself that I will exercise more, my present shoes begin to hurt my feet… Always an excuse for sitting in front of my computer and just blog and write on HubPages!

The paycheck I received today bring my checking account to 1 265$. I make a deposit of 1 000$ on my TD credit line. With the money I have available on my credit line (1 092$), I am tempted to do another investment… I know, I should keep some money aside, but I just cannot help it, I really want to do something out of that money. 1 092$ is not that much of money. But there are still possibilities:

100 units of Claymore Gold Bullion ETF (CGL) at 10.49$ for a total of 1 049 $ + T D Waterhouse too high commission fee of 29$ = 1 078$

or

200 units of The Consumers’ Waterheater Income Fund (CWI.UN) at 5.27$ for a total of 1 054$ + once again, T D Waterhouse too high commission fee of 29$ = 1 083$

And not too forget, 200 new units of The Consumers’ Waterheater Income Fund (CWI.UN) in our investment portfolio will bring an extra: something call dividend!

0.65 cents per unit for 200 units of Consumers’ Waterheater Income Fund = 130$.

So guess what, we go for The Consumers’ Waterheater Income Fund (CWI.UN). Yeah!

And what about our dividend income? Wonder what it would look like now?

From our non registered investment portfolio:
Sprott Inc. (SII): 512 stocks x 0.16$ = 81.92$
Bank of Nova Scotia (BNS): 105 stocks x 1.96$ = 205.80$
Methanex Corporation (MX): 103 stocks x 0.62$ = 63.86$
Fortis (FTS): 105 stocks x 1.12$ = 117.60$
Pembina Pipeline Income Fund (PIF.UN): 413 units x 1.56$ = 644.28$
Just Energy Income Fund (JE.UN): 726 stocks x 1.44$ =
1 045.44 $
Yellow Pages Income Fund (YLO.UN): 433 units x 0.804$ = 348.13$
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): 306 units x 1.152$ = 352.51$
Corby Distilleries (CDL.A): 100 stocks x 0.56$ = 56$
Davis + Henderson Income Fund (DHF.UN): 100 units x 1.836$ = 183.60$
Premium Brands Holdings Corporation (PBH): 200 stocks x
1.176$ = 235.20$
+ our new comer in our non registered investment portfolio:
The Consumers’ Waterheater Income Fund (CWI.UN): 200 units x 0.65$ = 130$
TOTAL: 3 843.78$

From our Tax-free savings account (TFSA) portfolio:
Consumers’ Waterheater Income Fund (CWI.UN): 200 units x 0.65$ = 130$
TOTAL: 130$

From our RSP portfolio:
EnCana Corporation (ECA): 100 stocks x 0.80$ = 80$
Emera Incorporated (EMA): 200 stocks x 1.132$ = 226.40$
TOTAL: 306.40$

3 843.78$ + 130$ + 306.40$ = 4 280.18$ + 100$ from DRIP = 4 380.18$

4 380.18$ / 12 months = 365.02$

365.02$ x 10 months (April-December 2010) = 3 650.20$

87 796.12$ + 3 650.20$ = 91 446.32$ + 9 000$ (1 000$ in savings per month for the next 9 months, May-December 2010 period, as we already contributed our 1 000$ for April)
= 100 446.32$

$$$

The plan is going to work! Maybe, maybe not, but the possibility is there. Right there.

Domain address problem among other

In the past 2 days, I had a problem with my blog. I taught I was having one major problem when I saw a cover under my Web page. My blog was no longer showing up. Instead of the content of my blog was showing the picture of a girl, smiling, and in title: Welcome to myfirst50000.com… Nice, but that wasn’t my blog! What happen is that I just forget to renew my domain address purchase. Once I make the payment for my address domain, my blog was back and running. I stay up all night Monday to resolve the issue. I didn’t understand what was going on. I change my template; delete about 3 recent posts…. But the issue happens to be a domain address renewal problem. I delete some posts that I had some comments on… Thinking it could be the issue. I had one comment left by someone living in Singapore and working at achieving financial freedom just like me… That one had been deleted too. And I no longer have my browser history because I deleted it on a daily basis… Too bad because I wanted to comment on his blog and now I lost track of it…

Now that back on track and that my domain address is now fully paid off lol, I can say, the past couple days haven’t been too good for my portfolio. My non registered stocks and units investment portfolio is at 47 700.52$, down of 464.25$ compare to April 5. It goes up and down… Of course, I just hate it when it goes down. But what went wrong? Why that par of my investment portfolio decreased of 464.25$? A few things actually happen. First, Sprott Inc. (SII) is at less than 4$ per stock. Sprott Inc. (SII) close the day at 3.90$, a lost of 56.55$ compare to April 5. Also, Just Energy Income Fund (JE.UN), our super Energy close the day at 13.61$, a lost of 385.74$ (!!!) compare to what my same investment in Energy worth on April 5… Those were the 2 major problems in my portfolio. Loosing money is never fun but I am confident those investments will go up again. For Sprott Inc. (SII) in the last couple of days, I saw Sprott going at less than 4$, going up… and down… And now its still down. But it will go up again, just a matter of time. As for Just Energy Income Fund (JE.UN), with the spring season, not too much gas is needed. I think its the Spring effect. Just Energy Income Fund (JE.UN) will probably keep its dividend the same. While loosing money in the investment, I can still rely on the dividend income.

But we experiment good gain today in some investment, but it wasn’t enough to keep the non registered portfolio at its outstanding 48 164.77$. I say outstanding because it was quite something to see more than 48 000$ worth in my non registered portfolio. Anyhow, we will again – some day lol – have 48 164.77$ in our portfolio…

Good gain with Davis + Henderson Income Fund (DHF.UN) today who close at 18.23$, a gain of 54$ compare to April 5. Also great stuff going on with Bank of Nova Scotia (BNS) who close at 51.51$, which represent a gain of 117.60$ compare to April 5. The amazing Yellow Pages Income Fund (YLO.UN) close today at 6.41$, a gain of 64.95$ compare to April 5 always. The Enbridge Income Fund (ENF.UN) of Derek Foster close today at 13.35$. The gain? 97.92$! Another one from Derek Foster, Corby Distilleries Limited (CDL.A) close at 15.55$, a gain… of 10$ lol. Little gain being better than loosing money of course. At the end, everything kind of balance. That’s why its important to diversify a portfolio! Yes, money had been lost, but it will eventually recover, especially with Just Energy Income Fund (JE.UN).

I had been investing in stocks for 2 years now, but dealing with the ups and downs of the TSX still frightening. So what am I doing there? I am too use to it now, I couldn’t live without this kind of excitement, making money, loosing money, you know, that kind of thing. My latest investments were good one. I do not stress, I just want everything to be UP. And all the time whenever it’s possible. It’s not the case right now, we’ll see how it goes.

I am a Neo-Brunswicker in power

Another weekend is over. My work weekdays schedule had been mixed up again this week but I am able to do the hours, just very inconvenient for me not to have my regular schedule. I was going to update my investment portfolio, but felt kind of tired and I am leaving things the way they are right now. The gains are good, but not significant enough to make a drastic change. And I do not hold 1 000$ in cash for now anyway, so all the one hour and a half work doesn’t worth it. But I notice really good gain. I still continue to believe that we are on the road to recovery.

I had been really right about the Sprott Canadian Equity Fund! My investment in the Sprott Canadian Equity Fund now worth 5 414.39$, an increase of 254.39$ compare to what we had on date of April 5. YEAH! And way to go Claymore! My fabulous Claymore Gold Bullion ETF (CGL) closed this last Friday at 10.44$. Remember that I had purchased 200 units at 10.16$? Hello wealthy profit! Since I hold Claymore Gold Bullion ETF (CGL), I saw the value of my gold bullions going up and down like a roller coster… But I am ready for the ride, that’s being part of the game. Also, I have to mention Yellow Pages Income Fund (YLO.UN), now at a fantastic 6.51$ per unit! Very awesome. I can easily imagine YLO.UN at 7$ per unit and it happen, my initial investment would than worth 3 031$, for a profit of 782.73! The fantastic CDL.A is now at 15.40$ when I had purchased 100 stocks at 15.30$ and so on…

The portfolio is relatively stable but just 2 deceptions: Just Energy Income Fund (JE.UN) who is at 14.10$ and Sprott Inc. (SII) at less than 4$, at 3.91$. I dislike seeing Sprott Inc. (SII) at less than 4$. But if the Sprott Canadian Equity Fund continues to well perform, this fund plus other Sprott mutual funds, Sprott Inc. (SII) value will rise. I think the stock market crash really affected Sprott. It had a bad effect on the Sprott Canadian Equity Fund as I explain previously and also on Sprott Inc. (SII) itself. If investors can remain confident as I am lol and invest their money in Sprott well, the situation will definitely get better. Investors had to invest. That’s very all. And I think that when it comes to investing, I did more than I could do. I did my part to save this economy, now its time for other to do their parts. Because its really like this, we all our parts, we all have a role to play in making things better, even if it’s a small role. But small roles can be rewarding and I like being a small players standing behind or between lol bigger players. It’s giving a sense of humanity to investment. And its really all what it is about. At least for me. And that’s basically what I mean when I say that I am a Neo-Brunswicker in power. In need of electricity lol...

Recent dividends: Sprott Inc. (SII) and Just Energy Income Fund (JE.UN)

Anyhow, I had receive 20.28$ in dividend from Sprott Inc. (SII) and 43.71$ from Just Energy Income Fund (JE.UN). All of those marvelous dividends had DRIP of course and had provided me extra stocks and units. Might seem like ridiculous sums of money, ridiculous investments all so extra diversify. But one day, those little sums of money and little roll over and so on will make me a very rich girl. Actually, when I went to TD Canada Trust for my 10 000$ RRSP credit line request this last March I think it was, after showing my assets (what you see in the right column) to the representative, I told him proudly: I am rich.

I never said it loudly before but the first time I ever said “I am rich” was at a TD Canada Trust branch in Montreal and funnily, the rep agree with me. So I had deal with someone really intelligent at TD Canada Trust and I got the loan I wanted. That’s how I do business, by letting other know that I am rich. I may hold around 36 000$ and something in debts. However, I am still rich and the rep at TD Canada Trust agreed with me so I am going to say it again: I AM RICH. Dealing with money is that just easy. Just need to come from New Brunswick to have a taste of it. That’s all.

More about my laid off from BMO Bank of Montreal

A lot of things had been going on lately… our lay off from our late job, our loan refusal from Bank of Scotia (BNS)… among other lol. But no matter what’s happening and how bad things are, I still find a way to manage. And I have to say, I am quite impress with myself.

I had my taxes declaration completed. My 10 500$ RRSP contribution had been quite helpful. I got a return of 134$ from the federal government. I own Quebec province 466$. It could have been worse since our total income for 2009 had been of more than 40 000$. And next week, it’s going to be worst for Quebec taxes. I don’t mind paying taxes, but the quality of health cares in Quebec is so low, I am basically paying for nothing at all. In more than 3 years living in Quebec, I never had the chance to benefit from Quebec health system. I never had been able to get my annual check-up done. I may have high blood pressure or cholesterol, or anything else. Who knows? I am in a good health condition, but it would be important to see a doctor at least once a year. I am in my late twenties now. Anyhow, I had experiment the Quebec system long enough to say that paying taxes in Quebec doesn’t worth it. Paying a high fee for rent, utilities don’t worth it either. Life in Quebec doesn’t worth it.

The job market is kind of close to new comers in Quebec and as a New Brunswicker, I never had the chance to have a real good job. Government jobs and Radio-Canada jobs are being offering to friends of people who already work for those organizations. While being at Second Cup coffee shop on Mont-Royal, I heard a girl saying that she just got a good administration job at Radio-Canada after being refer by a friend of hers who was working at Radio-Canada. In Quebec society, to have a job, you need to be referred by someone. I do not work in that system and I don’t want to get involve in it. This is what Quebec society is all about: hypocrisies.

I had been really bad treated by my ex-employer BMO Bank of Montreal. I had been laid off after only 3 months of try out, juts before the RSP season and after being giving a 5 000$ credit line and a 4 000$ credit card. I had a 6 months tried out period, but on that 6 months try out period I had been only giving 3 months. After providing several references, background check, involving a criminal check, after getting involve in a 6 weeks training, reading materials, after accepting a crazy schedule of 6 pm to 2 am in the morning at the call center of Montreal, I got laid off of BMO Bank of Montreal after only 3 months. Is that fair? I would have deserved my chance and they could have wait until the ending of the RSP season. But no. This is how it went to me and from now on, BMO Bank of Montreal will have to live with its regret. One of my late colleague had been laid off from BMO Bank of Montreal at the really end of the integration process. We were so not well train that we had questions every call or so that we were taking. It is not normal to have so many questions at the end of a 6 weeks training, training which at the end you are suppose to be ready to take calls. That why I find my laid off from BMO Bank of Montreal.

One day, if not by the end of 2010, I will reach the 100 000.00$ in assets and when it will happen, I will dedicate this achievement to those ***, BMO Bank of Montreal. Thank you for reading.

My stock investment portfolio in date of April 1, 2010

Savings:
1 002.69$

Non registered Investments:
Stocks & Units investment portfolio
Sprott Inc. (SII): 1 967.16$
Timminco (TIM): 160$
Blue Note Mining (BNT): 46$
Bank of Nova Scotia (BNS): 5 339.25$
Hanwei Energy Services (HE): 117$
Methanex Corporation (MX): 2 632.68$
Fortis (FTS): 3 043.95$
Pembina Pipeline Income Fund (PIF.UN): 7 244.02$
Just Energy Income Fund (JE.UN): 10 295.52$
Dumont Nickel Inc. (DNI): 460$
Yellow Pages Income Fund (YLO.UN): 2 688.93$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 544$
Pengrowth Energy Trust (PGF.UN): 1 266.70$
Enbridge Income Fund (ENF.UN): 3 987.18$
Corby Distilleries Limited (CDL.A): 1 525$
Davis + Henderson Income Fund (DHF.UN): 1 796$
Premium Brands Holdings Corporation (PBH): 2 878$

TOTAL: 47 991.39$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 759$
The Consumers’ Waterheater Income Fund (CWI.UN):
1 032$
Sprott Canadian Equity Fund: 5 089.92$
Cash: 21.69$

TOTAL: 8 902.61$

RSP investment portfolio:
Claymore Gold Bullion ETF (CGL): 2 034$
EnCana Corporation (ECA): 3 199$
Emera Incorporated (EMA): 4 912$
Cash: 259.15$

CIBC Dividend Growth Fund: 505.21$
CIBC Emerging Markets Index Fund: 446.54$
CIBC Monthly Income Fund: 973.09$

Energy and Base Metals Term Savings (Indexed term savings): 546.25$
Natural Resources Term Savings (Indexed term
savings): 502.06$

GIC National Bank: 1 170$
GIC Finance Plus: 1 513.97$
GIC Plus: 500$

TD Canadian Bond: 110.37$
TD Monthly Income: 102.13$
TD Emerging Markets: 81.37$
TD Energy: 83.04$
TD Precious Metals: 102.87$
TD Latin American Growth: 96.16$
TD Entertainment & Communications: 104.93$
TD Dividend Growth: 202.65$
TD U.S. Mid-Cap Growth: 100.25$

Maritime Life International Equity Fund
(Templeton): 643.10$
Manulife Simplicity Growth Portfolio: 864.39$
Maritime Life CI Harbour Seg Fund: 1 016.72$
Maritime Life Fidelity True North Seg Fund: 972.40$
Maritime Life Trimark Europlus Seg Fund: 607.28$

Great West - Various: 1 704.96$

RBC Canadian Dividend Fund: 513.48$
RBC U.S. Mid-Cap Equity Fund C$: 1 819.97$
RBC Global Resources Fund: 940.15$
RBC O’Shaughnessy International Equity Fund:
599.59$
RBC O’Shaughnessy All-Canadian Equity
Fund: 1 027.27$

GIC Canadian Market: 1 000$

TOTAL: 29 254.35$

Social Capital at Desjardins Membership share for
3 accounts: 40$

Savings + Stocks, units, mutual funds + Tax-free
savings account + RRSP + Online Income (100.68$):
87 291.72$
[In date of April 1, 2010]

Little gain by little gain: on the road to financial recovery

I finish work at 6pm and went for a walk after. The weather was so nice in Montreal this evening; a nice spring wind was in the air. Just last week, I was freezing to death, and tonight, well, tonight was really enjoying spring night. I couldn’t stop walking, feeling the nice wind in my hair. I went to Park Lafontaine, than continue walking downtown, went down to Radio-Canada tower. I continue my walk to the Old Montreal, went back downtown, all the way from St-Catherine Musique Plus to the Chapter, where I finish the evening and than I took the metro to come back home. Nice evening today I hope for another beautiful day for tomorrow. While walking, I had plenty of time to think. And I decide it could worth it to search for another job. Want to know why?

Well, I want to recover from my bad investments made in Timminco (TIM), Sprott Inc. (SII), and the other like HE, DNI, BNT and Sprott Canadian Equity Fund. I lost around 7 000$ in bad investment. I went through the calculation of those loses previously. I had learned from my investment mistakes. But now that I learn, I would very much to gain an extra 7 000$ in income in order to catch up. I would invest the money in a solid company like Enbridge (ENB) (hold by Derek Foster by the way lol). I always had great regrets when it comes to the bad investment choices I made in the early beginning when I decide to invest. If only I would have stick to Derek Foster portfolio, I wouldn’t be here today, thinking about how to recover. Yes I have more than 50 000$ worth in net value (after 2010 dividend earnings) but I know that I can achieve much more than that.

If I can have 2 000$ per month to invest, I would be able to reach the 100 000$ in assets in 6 months from now. By the end of 2010, I could exceed the 100 000$ in assets.

Another reason for my motivation is that some of my mutual funds investments are now at the same level that they were before the stock crash of 2008. So this mean that we’ll soon get back to the point where our mutual funds investments – mostly concentrated in our RSP portfolio will provide us a positive return. In the last couple of months, we lost some money in our mutual funds. At a point, I asked myself if it wouldn’t be better to just have the money sleeping in a saving account. But that taught never last for long. It’s just the recovery period had been extremely long for me, like I couldn’t see the end of it.

Heres some examples of what I am trying to explain:

The investment: CIBC Dividend Growth Fund
Initial investment value: 500$
When the investment was made? January 2007
My lowest point that I recorded was in August 2009. In August 2009, my investment in the CIBC Dividend Growth Fund only worth 465.98$.
What does it worth now? 505.21$ in date of April 1, 2010. Since January 2007, in 3 years of investment, I earn 5.21$ in profit from the CIBC Dividend Growth Fund. This is showing how tough the road had been. But as you can see, since we mark a gain with this investment, we can say that the stock market is on the road for a recovery. Personally speaking, this also mean for me that the CIBC Dividend Growth Fund is a pretty good fund, because we didn’t lost our initial capital, which was 500$.

We don’t have many examples like this one in our portfolio. But here is another one:

The investment: RBC Canadian Dividend Fund
Initial investment value: 500$
When the investment was made? January 2008
My lowest point that I recorded was in August 2009 also, when the investment in RBC Canadian Dividend Fund only worth 466.22$.
What does it worth it now? 513.48$. That being again on date of April 1, 2010. Since January 2008, I made 13.48$ from the RBC Canadian Dividend Fund… 13.48$ in 2 years of investment. I am being quite sarcastic, but once again, the RBC Canadian Dividend Fund had been strong enough to recover from the loses experiment in August 2009. The RBC Canadian Dividend Fund, just like the CIBC Dividend Growth Fund, is a very powerful, extraordinary investment if you want my point of view. Reason being that the investment save the value of our initial capital invested which was, in both cases, 500$.

This is one of the reasons why it is extremely important to diversify your investment portfolio. A portfolio will never be too much diversified.

And I like my portfolio! Forgive my craziness to have this very messy portfolio. The money is all over the place, in different investment products. You can name them all, I have them all (or almost): GIC, mutual funds, stocks, units, segregated funds, cash… I have all that :) Not now but on the long run, we should be able to generate good gain by this diversification. That’s one of the reasons why we have to get a third job. Is that understandable?

lol….

As you can see, the spring wind wasn’t only beneficial to my hair, but it was also beneficial to my little brain.

So I am hoping to see this kind of recovery for all of my mutual funds. I had worked hard at trying to pick the best funds and I am looking forward to recover from my mutual funds loses and also make money from those same investments. If we calculated the gain made by the recovery + our dividend earning + the current value of our assets; that really begin to make some serious awesome cash. This is getting way too hot.

So guess I will be job searching really really soon.

I am now at 87 291.72$

Interesting gain earns by the TSX today, but the gains aren’t showing up in my non registered stocks and units portfolio! I think its one of the first time this is ever happening to me, that my portfolio is not following the gain of the TSX. Our non registered stocks and units investment portfolio is now at 47 991.39$, a lost of a 311.47$ compare to March 29! A couple of things are going really wrong! Sprott Inc. (SII) is falling… under 4$! Timminco (TIM) is falling… under 1$! Hanwei Energy Services (HE) is falling… under 40 cents! Those are the major issues in our investment portfolio. If only the Sprott Canadian Equity Fund could performed better, it could bring Sprott Inc. (SII) to up to 5$ per stock. Sprott Canadian Equity Fund is doing better, but the fund is not doing better than following the gains of the TSX. At a management fee of 2.5% per year, I am expecting much more coming from the Sprott Canadian Equity Fund. High management fee but poor return. That’s what I had experiment with the Sprott Canadian Equity Fund so far.

Other than some loses and poor results with some so call investment, we experiment some positive gains today, but the gains were not enough to cover the loses, so we finish the day at -311.47$. PGF.UN continue its journey and will probably reach the 12$ per unit very soon. DHF.UN seem to be pretty close to the 18$ per unit. BNS will probably reach 51$ per stock very soon… Some great things are going on in our portfolio. Growing like a pretty little garden.

Our registered investment portfolio (RSP) had done very well, an increase of 110$ compare to March 29. Our mutual funds also earned interesting gain. Since I received a paycheck from my second job today, I add an extra 300$ to my savings section, for a total of 1 002.69$. Without that extra 300$ in savings, I would have been at 86 991.72$... But we have some savings so we now have 87 291.72$ in assets. Not bad isn’t?

My stock investment portfolio in date of March 29, 2010

Savings:
2.69$ (ING Direct)
700$ (regular savings)

TOTAL: 702.69$

Non registered Investments:
Stocks & Units investment portfolio
Sprott Inc. (SII): 2 073.63$
Timminco (TIM): 172$
Blue Note Mining (BNT): 42$
Bank of Nova Scotia (BNS): 5 364.45$
Hanwei Energy Services (HE): 126$
Methanex Corporation (MX): 2 666.67$
Fortis (FTS): 3 047.10$
Pembina Pipeline Income Fund (PIF.UN): 7 165.55$
Just Energy Income Fund (JE.UN): 10 338.90$
Dumont Nickel Inc. (DNI): 460$
Yellow Pages Income Fund (YLO.UN): 2 693.26$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 573$
Pengrowth Energy Trust (PGF.UN): 1 230.66$
Enbridge Income Fund (ENF.UN): 4 112.64$
Corby Distilleries Limited (CDL.A): 1 543$
Davis + Henderson Income Fund (DHF.UN): 1 760$
Premium Brands Holdings Corporation (PBH): 2 934$

TOTAL: 48 302.86$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 748.03$
The Consumers’ Waterheater Income Fund (CWI.UN):
1 044$
Sprott Canadian Equity Fund: 5 025.03$
Cash: 21.69$

TOTAL: 8 838.75$

RSP investment portfolio:
Claymore Gold Bullion ETF (CGL): 2 008$
EnCana Corporation (ECA): 3 099$
Emera Incorporated (EMA): 4 928$
Cash: 259.15$

CIBC Dividend Growth Fund: 504.59$
CIBC Emerging Markets Index Fund: 445.78$
CIBC Monthly Income Fund: 975.09$

Energy and Base Metals Term Savings (Indexed term savings): 546.25$
Natural Resources Term Savings (Indexed term
savings): 502.06$

GIC National Bank: 1 170$
GIC Finance Plus: 1 513.97$
GIC Plus: 500$

TD Canadian Bond: 111.29$
TD Monthly Income: 101.62$
TD Emerging Markets: 80.61$
TD Energy: 80.47$
TD Precious Metals: 101.53$
TD Latin American Growth: 94.54$
TD Entertainment & Communications: 105.29$
TD Dividend Growth: 200.72$
TD U.S. Mid-Cap Growth: 100.72$

Maritime Life International Equity Fund
(Templeton): 644.76$
Manulife Simplicity Growth Portfolio: 865.48$
Maritime Life CI Harbour Seg Fund: 1 016.87$
Maritime Life Fidelity True North Seg Fund: 965.41$
Maritime Life Trimark Europlus Seg Fund: 608.03$

Great West - Various: 1 704.96$

RBC Canadian Dividend Fund: 511.73$
RBC U.S. Mid-Cap Equity Fund C$: 1 826$
RBC Global Resources Fund: 912.68$
RBC O’Shaughnessy International Equity Fund:
597.59$
RBC O’Shaughnessy All-Canadian Equity
Fund: 1 020.96$

GIC Canadian Market: 1 000$

TOTAL: 29 103.15$

Social Capital at Desjardins Membership share for
3 accounts: 40$

Savings + Stocks, units, mutual funds + Tax-free
savings account + RRSP + Online Income (99.68$):
87 087.13$
[In date of March 29, 2010]