Trading Dumont Nickel (DNI) online

Remember that I own Dumont Nickel (DNI) in my portfolio and that had been trying for month now to make a profit out of this investment by selling my 23 000 stocks at 4 cents? Well, this haven’t happen yet and its been almost a year… lol.

On today May 11, Dumont Nickel stocks had rollback 8 to 1. This mean that I no longer own 23 000 stocks of Dumont Nickel. I now own I believe 2 875 stocks of Dumont Nickel. I say I believe because nothing had been changed in my broker account when it come to Dumont Nickel, if note just a « * » following the investment with still 23 000 stocks. I completely forgot about this and of course, during the day, when I saw DNI going from 0.015 cents to 15 cents, I got a taught, oh yeah, the rollback. No problem, but…

I had a sell order open to sell Dumont Nickel at 4 cents per stock. Since I forgot about the rollback, my sell offer at 4 cents for Dumont Nickel was still on… And during the day at work I wonder what was going to happen of my Dumont Nickel investment, if it was going to be sell or what. But it didn’t get sell, the order had simply been cancel… OUF! What a release. So now I just have to renew my sell order for Dumont Nickel once everything will be fix in my broker account. I hope it will be for tomorrow.

I originally purchased 23 000 stocks of Dumont Nickel at 3 cents per stock, for an investment value of 690$ + 29$ in commission fee for T D Waterhouse. For a total of 719$. If I want to make a profit out my now 2 875 stocks, I now have to sell at a higher price than 25 cents. I am not in a hurry to make money out of Dumont Nickel. Well not now, bt back in the summer of last year, I had made my investment in Dumont Nickel in order to make a quick sell and bring a 200$ in for the summer… But of course, it never happen… lol….. such memories.

Currently, Dumont Nickel no longer Dumont Nickel. The company new name is DNI Metals Inc. From my understanding, the company will continue to trade under DNI.

My stock investment portfolio gain 1 478.58$ today

Today had been a Sunny Monday, I just couldn’t wait for my day at work to be over so I can update my portfolio and see now things went on the stock market.

I close the day at a good 87 189.73$, which represent a gain of 1 478.58$ compare to May 7.

Back on May 1, my stock investment portfolio was at 88 632.34$. So compare to May 1, I am still experiencing a loss of 1 442.61$. But the gain of today were quite positive so hopefully, I will be once again near the 89 000$ in assets very soon.

My stock investment portfolio in date of May 7, 2010

Savings:
844.64$

Non registered Investments:
Stocks & Units investment portfolio
Sprott Inc. (SII): 2 022.40$
Timminco (TIM): 132$
Blue Note Mining (BNT): 42$
Bank of Nova Scotia (BNS): 5 336.04$
Hanwei Energy Services (HE): 123$
Methanex Corporation (MX): 2 228.92$
Fortis (FTS): 2 706.90$
Pembina Pipeline Income Fund (PIF.UN):
7 463.04$
Just Energy Income Fund (JE.UN): 9 393.35$
Yellow Pages Income Fund (YLO.UN):
2 739.99$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 549$
Pengrowth Energy Trust (PGF.UN): 1 107.70$
Enbridge Income Fund (ENF.UN): 4 235$
Corby Distilleries Limited (CDL.A): 1 557$
Davis + Henderson Income Fund (DHF.UN):
1 676$
Premium Brands Holdings Corporation (PBH):
2 494$
Cash: 9.88$

TOTAL: 45 816.22$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 646.17$
The Consumers’ Waterheater Income Fund
(CWI.UN): 2 012$
Sprott Canadian Equity Fund:
5 215.55$
Dumont Nickel Inc. (DNI): 345$
Cash: 32.49$

TOTAL: 10 251.21$

RSP investment portfolio:
Claymore Gold Bullion ETF (CGL): 2 180$
EnCana Corporation (ECA): 3 160$
Emera Incorporated (EMA): 4 710$
Cash: 259.21$

CIBC Dividend Growth Fund: 492.70$
CIBC Emerging Markets Index Fund: 438.58$
CIBC Monthly Income Fund: 996.62$

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: 113.79$
TD Monthly Income: 103.78$
TD Emerging Markets: 76.33$
TD Energy: 78.36$
TD Precious Metals: 109.50$
TD Latin American Growth: 86.59$
TD Entertainment & Communications: 101.63$
TD Dividend Growth: 195.41$
TD U.S. Mid-Cap Growth: 98.90$

Maritime Life International Equity Fund
(Templeton): 580.76$
Manulife Simplicity Growth Portfolio: 831.57$
Maritime Life CI Harbour Seg Fund: 974.85$
Maritime Life Fidelity True North Seg Fund: 945.24$
Maritime Life Trimark Europlus Seg Fund: 554.43$

Great-West – various: 1 753.62$

RBC Canadian Dividend Fund: 500.84$
RBC U.S. Mid-Cap Equity Fund C$: 1 760.05$
RBC Global Resources Fund: 860.96$
RBC O’Shaughnessy International Equity Fund:
545.24$
RBC O’Shaughnessy All-Canadian Equity
Fund: 992.97$

GIC Canadian Market: 1 000$

TOTAL: 28 734.21$

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

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(24.87$):
85 711.15$
[In date of May 7, 2010]

TFSA and RSP: the contribution in kind of Gordon Pape

I had read many times Gordon Pape books. They contain many great information and its sometimes difficult to keep all the pieces in head. As I use to read and re-read Derek Foster books from time to time, I guess I will have to do the same thing with Gordon Pape books. Why? Because Gordon Pape answers my questions regarding transfer of non registered assets into TFSA assets. I had read his book about TFSA, but I can of forgive about the contribution in kind. Or I might have it in mind and it wasn’t perfectly clear in my head.

Anyhow, I also add here the RSP because the exact same scheme applies. In 2010, I engage myself in a RSP credit line at TD Canada Trust. For my tax declaration of 2010, I have a bit more than 7 000$ I can invest for my RSP. For that next RSP investment, I will do what Gordon Pape explains as being a « contribution in kind ».

In January 2010, I transferred my 4 980.98$ Sprott Canadian Equity Fund non registered investment into my TFSA. When I blog about what I had did, I was told I had done a mistake by one of my reader. But from my point of view, what I did wasn’t a mistake. Here’s the why. Back in 2008, I had invested 7 033.50$ in the Sprott Canadian Equity Fund. In early 2010, the same investment in the Sprott Canadian Equity Fund worth 4 980.98$. In January 2010, I transferred the exact same investment into the TFSA. So why this should be considered a mistake?

When doing a contribution in kind to a TFSA or a RSP, no capital loss can be declared. In this case, my initial investment in Sprott Canadian Equity Fund worthed 7 033.50$. In 2010, the same investment only worth 4 980.98$. This represent a capital loss of 2052.52$ that cannot be declared for taxes purposes. This is my mistake.

According to Gordon Pape, in order to be eligible for capital loss, an individual have to sell outside the RSP or TFSA than get the money transferred into the RSP and TFSA and than re-invested the money in the same investment if wanted. Actually, once the money is being re-invested into the RSP or TFSA, it doesn’t matter if you reinvested the money in the same product. Remember: it’s your money and you can do whatever you want with it!

As for my part, reclaiming a capital loss never cross my mind because for me, it was cleared that the Sprott Canadian Equity Fund was going to increase in value over time. On date of May 7, 2010, my investment in the Sprott Canadian Equity Fund worth 5215.55$, which represent a gain of 234.57$ compare to January 2010.

The reason why I wanted to transferred my Sprott Canadian Equity Fund into the TFSA its because first, I wanted to invest something into my 2010 TFSA contribution and secondly, I wanted my gain that will be made with the sell of Sprott Canadian Equity Fund to be free of taxes. Of course, we are talking here about a long term investment. I have a lot of time in my hand, I don’t mind waiting 2 years if needed before selling the Sprott Canadian Equity Fund in order to make a profit out of it. But when time will come, the profit will be free of taxes. That was the idea behind my transferred of Sprott Canadian Equity Fund into my TFSA.

With contribution in kind, if capital loss cannot be declared for taxes benefit, you absolutely have to declare capital gain, even if you don’t sell the investment, even if its only the question of a transferred from non registered to a registered account (TFSA or RSP). That’s kind of tricky and government just playing a very foolish game with investors. But I guess the reason why taxes had to be declared on capital gain on the money being transferred is because the money being transferred grow free of taxes. So if money had been made before the transferred being made, you can imagine, the government wants to get a bite of what you had made in profit.

We could make the following summary:
Capital loss: CANNOT be declared. Must sell the investment outside the TFSA before transferring the money (it cannot be the investment itself if you want to declared capital loss) into the TFSA.
Capital gain: MUST be declared.

Very easy to understand isn’t? I am glade I went thought this now because later on I will have to invest for my RSP and its going to be a contribution in kind. And a contribution in kind of course mean when you take non registered investment and transfer that investment into RSP or TFSA. Pretty easy once you understand.

And of course, you understand that what I had written in this post is my very own interpretation of Gordon Pape explanation of contribution in kind for TFSA that also applied for RSP. For the accurate information, you can read pages 20 and 21 of the Ultimate Tax Free Savings Account Guide of Gordon Pape latest edition and, if not, read the whole book, plenty, several, multiple times as required by your brain. :)

How I lost near 3 000$ in one day of trading or my investment portfolio after the Dark Friday

Many things had changed between May 1 and May 7, 2010. Back on May 1, 2010, my investment portfolio was at 88 632.24$. On date of May 7, 2010, the same portfolio was at 85 711.15$. This represent a lost of 2 921.19$. I was very curious to find out how much I had lost. In my mind, it was clear I was loosing around 2 000$ to 3 000$. It happen that I am very close to the 3 000$ in money lost. But its not really money lost because I didn’t sell anything. It’s more about taking a taste of the market volatibility. And I hate that taste lol.

Should I stay away from the stock market? My answer is no. Greece debt and other European problems had resulted on a Dark Friday this late May 7, 2010. I don’t know exactly what caused the crash, if it’s the result of investors selling their stocks and units but from my part, I can handle those looses, in the sense it won’t make me sell my stocks and units. Not to forget that earlier in April, my portfolio had reached over 89 000$. The market will eventually recover. I am just very curious on how it will turn out this upcoming Monday. In those recession times, the stock market can be a very scary place to me. But for myself, its too late, I just want to be there and whatever happens, I will just follow the flow. Even if the worst could be ahead, I cannot imagine myself selling my investment portfolio. What would I be doing with all of the cash anyway? My life would lost all of its excitement, no more money lost, no more gains, no more dividend. Stock market is a nice way to spice up your life. And at this time, the market is kind of hot.

My best advice will be: Invest if you don’t mind about the risk. If you are scare about loosing money in the stock market, simply do not invest in stocks and units. Because yes, the stock market is volatile and guesses what, it’s not even over yet.

I still plan to make another investment in June. I was thinking about Corby Distilleries Limited (CDL.A), but I have to say, I am quite tempted by 200 units of Just Energy Income Fund (JE.UN). But in those recession time, its better to diversify so I just plan to follow what I had already plan and purchase 100 stocks of CDL.A. June seem to be so far away! I have 844.64$ save in cash for my next investment. Just very excited. I learn more lately about contribution in kind to a RSP and TFSA and my discovery will be the topic of my next post.

My investment portfolio in date of May 1, 2010

Savings:
600$

Non registered Investments:
Stocks & Units investment portfolio
Sprott Inc. (SII): 2 109.44$
Timminco (TIM): 162$
Blue Note Mining (BNT): 46$
Bank of Nova Scotia (BNS): 5 436.90$
Hanwei Energy Services (HE): 147$
Methanex Corporation (MX): 2 433.89$
Fortis (FTS): 2 945.25$
Pembina Pipeline Income Fund (PIF.UN):
7 596.16$
Just Energy Income Fund (JE.UN): 9 670.32$
Yellow Pages Income Fund (YLO.UN):
2 975.97$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 536$
Pengrowth Energy Trust (PGF.UN): 1 234.90$
Enbridge Income Fund (ENF.UN): 3 997.84$
Corby Distilleries Limited (CDL.A): 1 575$
Davis + Henderson Income Fund (DHF.UN):
1 813$
Premium Brands Holdings Corporation (PBH):
2 740$
Cash: 142.81$

TOTAL: 47 562.48$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 799.85$
The Consumers’ Waterheater Income Fund
(CWI.UN): 2 160$
Sprott Canadian Equity Fund: 5 411.11$
Dumont Nickel Inc. (DNI): 460$
Cash: 32.49$

TOTAL: 10 863.45$

RSP investment portfolio:
Claymore Gold Bullion ETF (CGL): 2 126$
EnCana Corporation (ECA): 3 360$
Emera Incorporated (EMA): 4 732$
Cash: 259.21$

CIBC Dividend Growth Fund: 511.97$
CIBC Emerging Markets Index Fund: 464.61$
CIBC Monthly Income Fund: 1 023.32$

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: 113.19$
TD Monthly Income: 106.52$
TD Emerging Markets: 81.48$
TD Energy: 85.13$
TD Precious Metals: 113.45$
TD Latin American Growth: 94.31$
TD Entertainment & Communications: 108.59$
TD Dividend Growth: 202.82$
TD U.S. Mid-Cap Growth: 104.39$

Maritime Life International Equity Fund
(Templeton): 631.56$
Manulife Simplicity Growth Portfolio: 864.74$
Maritime Life CI Harbour Seg Fund: 1 022.47$
Maritime Life Fidelity True North Seg Fund: 985.39$
Maritime Life Trimark Europlus Seg Fund: 588.51$

Great-West – various: 1 753.62$

RBC Canadian Dividend Fund: 519.58$
RBC U.S. Mid-Cap Equity Fund C$: 1 880.13$
RBC Global Resources Fund: 938.50$
RBC O’Shaughnessy International Equity Fund:
596.53$
RBC O’Shaughnessy All-Canadian Equity
Fund: 1 047.92$

GIC Canadian Market: 1 000$

TOTAL: 29 548.22$

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

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(18.19$):
88 632.34$
[In date of May 1, 2010]

OUTCH! The European recession is hurting my porfolio

I lost near to 2 000$ in my non registered portfolio. Overall, I may had lost 2 000-2 500$ or close to 3 000$, but I didn’t calculate the current value of my everything because my everything is everything but not short. I am not a minimalist investor, let’s say. I love to accumulate, accumulate, both investments and debts.

Ok, so in result of the European crisis, I might had lost around 3 000$. But it’s not like my portfolio had lost a third or a half of its value. I can easily support loses like this one. I had experiment the market volatibility before and each time, I recover. From my point of view, my portfolio can go through another economic break down without too much trouble. It’s just kind of sad because with my mutual fund investments, I had just begin to recover from the 2008 loses. And now, I guess the gain had been lost. I am confident the market will go up again. What we had live with the US-Canada recession was as worst as what’s happening now in Greece and other European countries. I am still looking forward to invest in 100 extra stocks of CDL.A in June. I just cannot wait!

Also, in late May, I will receive the money for a GIC that I hold in my RSP portfolio. I will get the money transferred into my RSP broker account and I may purchase an ETF. I am quite tempt to invest more in the Claymore Gold Bullion ETF (CGL). I had been very satisfied with my Claymore Gold Bullion. And what better place to hold gold anyway other place than in a RSP?

CIBC Visa is the best!

Yesterday, I was very upset at CIBC Visa and you know, those frustrations had to come out one way or the other. The rep I talked to last time told me that my 3.9% special interest rate on my remaining balance of 1 283.63$ was ending today, May 6, while it should had end on September 6. I didn’t have time to argue with the rep at that time and I also wanted to make sure I wasn’t making a mistake on my side. I wanted to review my transfers and see exactly what had been done. Lately, I had been quite busy so passing time on such things really annoyed me. You could ask me, what are you doing, what are you so busy at? I am busy at living first, at working everyday, not to mention that each day involve 1.5-2 hours of walking every single day now that I do not own a metro pass. It’s been almost a week now without a metro pass and I kind of enjoy walking around, especially with the wind, I just like Montreal wind, a nice flair one. And I am also busy at trying to make money online and following the stock market and my sensational investments. That’s what I am busy at.

Anyhow, I call back CIBC Visa today and it appears that I was right! I went gently with the rep without screaming – lol – I was put on hold while verification was made. And after I was told that everything was fine, that I was going to have the 3.9% on the 1 283.63$ balance left until September 6. I was so happy that I told the girl I would wrote a note on her behalf. And of course I will. So I am pretty thankful for CIBC Visa to have fixed my problem.

I never had any issues with CIBC. I am grateful to have some investments with CIBC and a credit card. So this problem had been fixed. I am very happy now because my projects are taking form. I do not really want to begin paying off debts until I reach 100 000$ in assets. That’s really all. It could be seen as a non-sense for some people but for me, it all make sense. The TSX might be under the 12 000 points now, but it doesn’t change anything in my projects. The lost of today at the market is actually a good sign and the opposite – gains – would had been an abnormal reaction to an abnormal situation that we are currently living with the Greece and other European countries. The market had a normal reaction to an abnormal situation and it’s a good sign. The TSX is just following the market. And it’s more important than ever to have a diversified portfolio. It’s also a very good time to make some new investments if, of course, money is available. Which is currently not my case lol.

While most of my investments had lost in value today, one had gain: Claymore Gold Bullion ETF (CGL). Until today, Claymore Gold Bullion ETF (CGL) highest value was 10.79$. Today, Claymore Gold Bullion had been its own scored by reaching a fantastic 10.93$. This is exactly what happens in recession time: the price of gold increase. And Claymore Gold Bullion ETF (CGL) had just followed the market. Adding Claymore Gold Bullion to your portfolio can help to provide stability to your assets. The only problem being that this investment won’t bring any dividend in the house. That’s the price of stability, I guess.

And talking about dividend, I had received 51.45$ from Bank of Nova Scotia (BNS) and a very awesome 75.02$ from Just Energy Income Fund (JE.UN). I am now at 106 stocks of Bank of Nova Scotia (BNS) and 731 units of Just Energy. Regarding JE.UN, I would very much like to reach the 1 000 in units of Just Energy Income Fund (JE.UN). But as for now, my goal is to invest in 100 stocks of Corby Distilleries Limited (CDL.A). Corby Distilleries Limited (CDL.A) close the day at 15.60$. Since I own CDL.A, I never saw the stock price going under the 15$ per stock. Corby Distilleries alcohol is as pure as gold: Corby Distilleries will continue to bring great stability to my portfolio just like, Claymore Gold Bullion ETF (CGL).

In those tough times, I greatly need stability, especially after seeing Just Energy Income Fund (JE.UN) falling to 13$ per stock. Currently, my non registered portfolio is under the 47 000$. This is of course very sad, but the market will go up again. Just Energy (JE.UN) had made a great acquisition in the US and its unit value will go up again. Energy stocks can be quite volatile and sensible to the market condition. The market condition may affect JE.UN value at the TSX, but it won’t affect JE.UN dividend. My dream would be to own 1 000 units of JE.UN. This is quite realizable knowing I already own 731 units. The DRIP system is really fantastic. Earning one more stock of Bank of Scotia (BNS) through the DRIP system could be seem as being nothing at all, but it is not, especially knowing that 1 new stock bring 1.99$ extra in dividend income. When a company close or suspend its DRIP, like Premium Brands Holdings Corporation (PBH) and Pembina Pipeline Income Fund (PIF.UN), its all the hope for a better portfolio that disappear, even if its mean earning 1 or 5 stocks or units less per distribution period. But not having the DRIP is not the end of the world. It’s actually quite pleasant to have some extra cash available to do whatever you want with it. You can do whatever you want with the dividend earn because it is YOUR money. Is there any better thing in the world than earning dividend?

With my newest dividend earning, I just exceed the 1 000$ in dividend for 2010. I am currently at 1 123.49$ in dividend passive income for 2010. After 2 years investing in stocks and units, I become a better investor. So far for 2010, nothing major but I can say proudly that I didn’t make any investment mistakes. I do things the way I want and so far, I am satisfied with the results. I always told myself that if the losses would became too significant, that I would stopped investing but so far, I recover from losses and I am confident that my portfolio situation will just get better over time. Guess I am still too much confident in myself even after being laid off of BMO Bank of Montreal.

I am that of a monster :)

The story behind my 1 283.63$ credit card debt: example of a credit card balance transfer that turned wrong... because of CIBC Visa

I am credit card balance fanatic. I like this system because its allow me to borrow money at a smaller interest rate. I am receiving credit card balance transfer on a regular basis and so far, once one is close to the term date, I am receiving another offer from another credit card that I hold. So I had been « playing ping-pong » as I like to call it, quite often in 2009&2010. Everything went perfectly well until recently.

Once of my credit card balance transfer offer is ending on May 6… which is tomorrow. But it shouldn’t be the case. Here’s the story behind my 1 283.63$ debt at a promotional rate of 3.9% that is ending tomorrow.

A couple of months ago, I had received this incredible offer coming from CIBC Visa: 3.9% interest rate on a credit card balance transfer! WOW! Of course, I wanted to benefit from this offer to invest more. And I did. That’s how today I own 726 units of Just Energy Income Fund (JE.UN).

I proceed with 2 different transfers:
-First one of 2 854.31$. The 3.9% interest rate offer ending on May 6, 2010.
-Second one of 1 404.19$. The 3.9% interest rate ending on September 6, 2010.

At that point, nothing wrong.

Recently, I had received an offer from TD Visa, a 4.9% interest rate valid for 6 months! Great! So I wouldn’t have to sell my investment to pay off the amount due! Yeah! I am sometimes very lucky like that.

Of course, I ask for a credit card balance limit increase for my TD Visa. My limit had been increased as I wanted (or I was going to cancel everything, that’s exactly what I told the guy lol). PERFECTO. So I proceed to a credit card balance transfer from CIBC Visa to TD Visa for an amount of 3 000$ at a 4.9% interest rate valid until September or something like it 2010.

Here again, nothing wrong.

But…….

Earlier this week, I gave CIBC Visa a call, asking how much I had in balance left and my interest rate. I just wanted to confirm the interest rate, right. That’s when I was told that my interest rate at 3.5% was ending on May 6, 2010. But previously before, I had made a call, speaking to a representative and she confirmed me I was going to be good for a 3.9% interest rate until September 6, 2010… Like I explain to her what I wanted to do, and she confirmed it was going to be ok. But the guy to who I spoke to earlier this week told me that the 3.9% interest rate was ending on May 6. WRONG! Scandalously wrong!

So what’s going to happen?

I am going to call CIBC Visa asking them to correct their mistake. If not, I am never going to deal with them again. DONE. GAME OVER. And if they don’t want to, I am going to ask to speak to a supervisor because I had received the confirmation from a representative that I was going to have the 3.9% interest rate on the amount left… They just have to listen to the call.

No way I am going to begin to pay off debt. It’s so not me. I am waiting for a good paycheck this evening at midnight because I might have received some commissions. That money is going to be use on the purchase of 100 stocks of CDL.A. It will certainly not be use to pay off debt. It’s not CIBC Visa who’s going to ruin my everything. Those banks really need to learn how to respect people! I am just hoping that CIBC is not following BMO Bank of Montreal footsteps. Like you know, a bank turning into a ghetto scheme or something like that.

My debt situation on date of May 3, 2010

Credit line 1: 10 000$ at 4.75%
Student loan debt: 8 309.46$ at 4.75%
Credit card 1: 8 001.66 at 4.9% for 6 months (until October 2010)
Credit line 2: 5 000$ at 3.5%
Credit line 3: 4 880.89$ at 8%
Credit card 2: 1 283.63$ at 3.9% ending… on May 6, 2010!
TOTAL: 37 475.64$

Dealing with credit card balance transfer can be kind of… confusing. One of my credit card balance transfer offer is ending… on May 6, 2010. I taught I would have until the end of the month to figure out something…. But not, after verification with CIBC Visa… Oups!

It’s my mistake but no problem. I currently hold more than 37 000$ in debts. Time have come to pay off some debts, don’t you think so. I party hard with my money, made investment crazy and so. It was fun. But now I am looking to clear off the 1 283.63$ balance I hold on the credit card number 2. On May 6, I should be able to make a payment of 700$ on that debt. After what, I will only have left 583.63$ to pay. So it shouldn’t be too bad. I won’t be able to invest again in June just like I wanted. But in a way, paying off some debts is not a bad thing. In the upcoming months, a paying debt-investing-paying debt-investing scheme might turn out to be a better sequence than just investing-investing-investing and only paying the minimum on debt.

I had been paying the minimum on debt because the dividends I earn largely cover the interest gain on the money I borrowed. But I guess I am at the point where some debts need to be paid off.

First step is to pay off the 1 283.63$. After what, I will have to look after the 8 001.66$ at 4.9% that is ending on October 2010. What am I going to do?

Ok, I know, I previously say I was going to use margin to pay off debt at a cheaper interest rate. The interest rate for T D Waterhouse margin is 3.5%. 3.5% is a very low interest rate and seem very appealing at first. But margin is kind of complicated and I just don’t like margin at all. It would stress me too much to have to deal with margin. NOW I understand why Derek Foster suggested not to use margin. It’s too complicated stuff for small people like myself. Margin is mostly made for super-rich, those who can afford risk. I can’t. And margin is too complicated. Anyhow, at this time, I am not ready for margin. Not at all. Margin = frightening and scary! For now, I prefer to keep things simple.

So here’s the plan, I am going to pay off the 1 283.63$ credit card debt. Until September 2010, I will make the minimum payment on my debts. And by September, I am going to ask for a credit line. Where? I don’t know yet. But thing is, I cannot place my request now because my RSP credit line is recent from March 2010 and also, I just applied for the 3 000$ credit card limit increase at TD Visa. I cannot ask for too much credit at the same time either so I guess that waiting for 5 months before asking for any other credit is a good option, from my point of view. And if my credit line request is being decline than, I may turn to margin as only left alternative.

The 1.99% credit card balance transfer I received for one year is tempting, but its involve opening new credit card which, after the first year, will turn into the regular 19% or so interest rate… I don’t think it really worth it.

Today was my first day ever without my metro pass… and I survive to it! It was raining this morning but not that much. I guess I am about 40 minutes walking distance from work, not more. I don’t know for sure because I want pay my credit card and stuff among the way. And when I came back home the weather was just amazing. Walking on a daily basis will just make a lot of good to me. As much as paying off some debt.