More Claymore Gold Bullion ETF (CGL) units please

I am very tired of my week spend at work. I usually only work 30 hours per week at that job. I had been working 40 hours and up per week for the past 3 weeks now and its way too much. I am getting tired, extremely moody and my temper is just about to explode! I feel like screaming my breath away AHRRRRRRHHHHHHGGGGGGGGGG! Customers are getting into my nerves, my supervisor as well and this just by simply posing his hand on my shoulder. GET OFF ME! It’s so terrible. So today, my sup wasn’t there, but no matter what, I only did half an hour extra and I say to an old colleague of mine that I couldn’t stay longer and I left. Anyway, I had completed my regular shift. I am always extra cautious at coming at time to work and stuff, doing my hours you know. Extra hours are just extra hours after all. I just cannot do extra hours anymore. I prefer a smaller paycheck and keep my mental health rather than burning myself, working extra long hours. Nothing matter anymore, I have reach my goal. I simply now to keep paying my stuff on time. No matter what happen, I have money to do basically whatever I want. That’s what the Stop Working of Derek Foster had brought to me. The liberty. Not that I am about to stop working anymore, but at least, I am in a good financial situation or should I say, I consider myself being in a good financial situation.

And talking about the good financial situation of mine, my non registered stocks and units is currently at a very good 58 741.86$ - this being even higher than on September 13, 2010!! So when I received this kind of emails coming from readers, I really don’t give a damn, no matter what happen in my job situation or personal life, nothing of that matter because my portfolio is performing so well:

“Sorry if this bursts your bubble, but I have never seen such a ridiculous, reckless and fragmented portfolio such as yours. It's like someone threw a hand grenade into a china shop. You holdings are scattered to the point of stupidity.

While you claim to have doubled your money in 12 months, what you don't say is how much you have reinvested during that time. Quite a lot, I suspect.

Oh, and I do know a little of what I speak, having invested in BMO at $24.10, RBC at $26.40, Crescent Point Energy at $17.46, Red Back Mining at $11.41, Caterpillar at $36.14 -- all at near lows last year -- and Kraft Foods, Johnson & Johnson, General Electric.

Take a look at LYG-N that I grabbed for $3.01 in February. Look at it today. There's more to stock picking than throwing darts at a wall.

But good luck, anyway. With what you have, you're going to need it.”

Yeah yeah, you have read correctly. That’s had been wrote by a reader. I won’t publish in here the email or the address because it’s not my type but hey, wow……. As for myself, I really like the “threw a hand grenade into a china shop” part! See that’s not my kind of English – it’s really the email of a reader!

The “such stupidity” of mine is performing quite well. Sure, my way of investing may appear to some other as not being well structure but my way is that I invest in whatever I “feel” and “sense” as being a good investment. For 2010, I did great investment pick one after the other. My way is personal, I can understand if it can be seem as weird or a bit estrange, but hey, I “got” it lol……… And when you got it you got it right…….lol. But my blog is mostly about sharing an investment experience. Nothing more or less. That you like it or not.

I won’t be updating my investment portfolio value because I am way too tired, but gees, my portfolio is just doing so well! I was quite surprised to see it that high, at 58 741.86$, because EnCana Corporation (ECA) close this Friday at a low 29.01$. So I lost a bit of money with EnCana Corporation (ECA), but I am still pretty sure it will go up, maybe not right away to 65$ per stock, but a 30$, and we can seriously of a 35$ and up. A slide from my original purchase price of 29.44$ to 29.01$ is nothing at all. EnCana Corporation will create great profit to its investor and when it will happen, I will be in.

Generally speaking, I don’t have too much patience, but when it comes to stocks and money, I can wait; I have all the time of the world. And time is paying off! My investment in the Sprott Canadian Equity Fund is now at a very great 5 836.94$! Getting closer to the 6 000$. 2009-2010 had been a difficult for the Sprott Canadian Equity Fund and by keeping my parts in the fund, not selling was a very good decision to take, I just hope you did the same.

The stock market belong to warriors, you shouldn’t ever sell if it’s to loose money and declare a capital loss. Those are the reasons I am still holding, in date of today, Timminco (TIM), Blue Note Mining (BNT) and Hanwei Energy Services (HE). You invest to make money yes, but you also have to stand by the companies you have decide to invest in. I never saw the losses coming when it come to TIM, BNS and HE, so once I notice the looses, it was too late. So I decide to keep those companies in my portfolio. I had been reading the annual report of Timminco (TIM), Blue Note Mining (BNT), Hanwei Energy Services (HE) and I find those companies very great and I wonder what happen, why those losses? I came to the conclusion that those companies, especially Timminco (TIM) had been badly hurt by the recession. It’s difficult for a small investor like myself to try to understand those kind of things. But I decide to stop the search of the “why” and stick and hold. I have hope, especially when it comes to Hanwei Energy Services (HE).

Hanwei Energy Services (HE) was my own very pick after reading about the company in the Canadian Business magazine. I was like wow, China + clean energy, that equal GOLD right? It didn’t turn that way, but gees, I truly believe that this Hanwei Energy Services (HE) of mine is a good bet. Hanwei Energy Services (HE) had been a company victim of the bad economy we are currently living in.

Only experts can really tell how bad it is and this might be a reason why Derek Foster had sell his stocks in March. Because things are really really bad out there. If not more jobs are being created in the US, I might loose all of my very wonderful profit. While investing in the stock market, you have to be ready to all possibilities. That’s why it’s important to diversify your portfolio. To equilibrate your investment portfolio, invest in gold products. In recession time, your best asset is gold. I only have good worlds for the Claymore Gold Bullion ETF (CGL). The units price is still affordable (less than 12$ per unit). Huge profits are going to be made on the Claymore Gold Bullion ETF (CGL) and when it happens, please, say that you have read it first on myfirst50000.com blog ok?

Right now in my life, there’s just 3 things that I need: a boyfriend, a good nice hair cut and some more Claymore Gold Bullion ETF (CGL) units in my portfolio.

Good results with the Sprott Canadian Equity Fund

I had received some interesting dividend lately: 28.59$ from Fortis (FTS), 30.34$ from Yellow Pages Income Fund (YLO.UN) and 54.99$ from Pembina Pipeline Income Fund (PIF.UN). The dividends are adding up quite well. I soon will be at a 3 000$ in yearly dividend income for 2010. I just received a little paycheck, my banking account is adding up quite nicely. Finally, I am having good result with the Sprott Canadian Equity Fund. From what I am currently seeing in my online broker account, my investment in the Sprott Canadian Equity Fund is now very close to the 6 000$. I originally invested 7 000$ in the Sprott Canadian Equity Fund. I am sticking on the Sprott Canadian Equity Fund for now, but as soon my profit made with the fund, I SELL lol. Anyhow, things are going quite well at the exception of my new supervisor at my daytime job who’s doing too much and is getting way too much annoying. But best of all: he doesn’t know how to do the job! He doesn’t have a clue of what we are going as agent. Very hilarious situation if you want my point of view. And now, the same poor guy want his staff to go talk to the people we are working for about stuff that do not work well in the company and so on. Like what the hell. Leave me alone F of Quebecker lol! I couldn’t say better, even in French lol.

And yo, readers, stop saying bad things about Derek Foster or if not I am going to cry and you don’t want that to happen don’t you (unless you are a F of Q (q in French meaning as**** or almost). lol…… Isn’t that funny? Leave Derek Foster alone please. He's my hero.

The situation I am living right now at work remind of the time when I was working at the Montreal call center of BMO Bank of Montreal in the Old Montreal. The Vice President of the call center (Montreal section) of BMO Bank of Montreal that occupy the position had worked for BMO Bank of Montreal before but before beginning his duty as Vice President of the BMO Bank of Montreal, he had never worked in the call center. This mean that the BMO Bank of Montreal Vice-President of the Montreal call center never work as a phone operator for BMO Bank of Montreal, but is currently the Vice President of it. Does this making any sense to you? It doesn’t to me.

And now investors wonder why BMO Bank of Montreal is not a good performer. Well, I guess that now investors had partly a response to that matter. The situation is due to poor managing, poorly skill managers. We once had a presentation where the Vice President of BMO Bank of Montreal – Montreal call center gave a presentation and said that he was “vendu à la BMO Banque de Montréal” (French), meaning being “sold to BMO Bank of Montreal”. Well, I hope he is, because the poor man doesn’t worth that much outside BMO Bank of Montreal network.

Quebeckers are well-known in this country for their poor judgment, poor team spirit, poor everything right and the situation at BMO Bank of Montreal is due to a mix of those factors. A lack of savoir-faire, very simply. You know how to do business or you don’t know how to do business. And trust me, I had been working there until I got laid off beginning of 2010 and trust me when I say that BMO Bank of Montreal do not know how to do business with people, it’s because they really don’t know how to do business with people. You can count on my judgment, I had exceed the 100k in investment now and when I say something, it’s right, it’s coming from the heart and my soul.

If I am saying all this, it’s become I want to protect yourself. I want to warn you about not to trust Quebeckers and if you are reading this, are a new immigrant in Canada or a Canadian citizen looking for new opportunities and looking forward to come to Quebec province to move in or even more specifically in Montreal well, my good world would be: stay away from Montreal. Stay away from Quebec province. Here in Quebec, taxes are extremely high. On a 1 300$ salary, I am only earning something like 946$, no even a 1 000$ in my pockets. Health services are extremely poor quality. Hospitals are not well equipped. Quebec leaders say it’s because of a lack in the budget, it’s not because money is missing, it’s because Quebec leaders are taking everything for themselves and they don’t know how to manage and how to correctly spend the tax money. Education system is very poor, no places in kindergarten for children, horrible workplace, salary wages are poor. At least, when living outside Quebec, you’re giving a chance to grow at your full potential and no worries of being lie to by the same ones who think that they are so bright that they want to destroy one of the best countries of the world – Canada – to create their own. Isn’t that enough stupid for you?

Look what’s going on right now with the stupid Jean Charest and Marc Bellemare (in the news lately and you’ll find there the spirit of Quebeckers. Because the vast majority of Quebeckers are cheaters and liers, another example of that would be in the person of Brian Mulroney.

Protect yourself: stay away from Quebec and don’t do business with Quebeckers.

As for myself, whenever I ask for credit, like my latest RBC credit line for example, I call the English line. Not that my English is perfect – of course not – but that protect me from having to deal with Quebeckers. It’s the best I can do. I try not to deal directly at a branch or office because I know how they are. The “they” is referring to Quebeckers – of course. And because of this I basically almost get everything that I want. I keep myself clean from any Quebec relations and you should do the same thing. And express you’re proud of being Canadians to those F.

You know, when my RSP credit line loan got refused at Scotia Bank back in March 2010, I remember screaming over the phone: “Maudit Québécois” (something like I hate you Quebecker in English) to the guy who refused to approve me for the RSP credit line. Several months after, I got approve for a 10 000$ RSP credit line at TD Canada Trust and a 10 000$ credit line at RBC Royal Bank. Credit, I eat it, I need it to live and breathe. My situation didn’t improve, it’s the same. So why did I got refused at Scotia Bank? It’s because of the lack of judgment of that Quebecker and I express myself in a way that the idiot could understand who I am. I am giving you the permission to yell as loud as you want to Quebeckers when you don’t get what you want from them. Let them all know who you are, so they can understand, once for good.

I am now at 100 800.40$

There you go! I am now at a very nice 100 800.40$! As you can imagine, I am very please with the results of today. Almost at 101 000$ without too much problem, isn’t that cool? My portfolio is not perfect but it’s been performing well and I think that the next upcoming months will also be good, but only if the economy get better in the US. It will be quite a challenge for Barack Obama. But hey, after all, Barack Obama is the first black person to become president of the United States. No challenge is too big for Barack Obama and believe it or not, everything or almost is under control. Republicans just need to stay at their places and let Barack Obama lead. Just like Quebeckers need to stay at their places. (I am very sorry, it's just something I really wnated to say :))

Recently, I had received one of those comments about Derek Foster lately that I didn’t really want to answer. But here will be my answer to the poor guy who had left an awful comment, calling Derek Foster “bum” (you have to go read that comment, click on here). Well, to that I will answer that Derek Foster is definitively not a bum. I am currently at 100 800.40$ because of the reading of the Derek Foster books. I started investing in stocks after reading his Stop Working. And even more important: I never loose any money by investing in Derek Foster stocks. And fact is, I lost a great deal of money by following Eric Sprott. I lost money in the Sprott Inc. (SII) stocks, I had lost money in Timminco (TIM), Eric Sprott ex-darling stocks and, even worst, I lost money by investing in the Sprott Canadian Equity Fund. I seriously lost thousands of dollars by following Eric Sprott. By investing in Derek Foster stocks, I never lost a penny. I made money like crazy and hit the 100k very quickly. Some people become good at investing after reading Warren Buffet and other. But for myself, I needed something fast, easy and practical because when it comes to learning among other, I don’t have any patience. I want everything right now. And with Derek Foster, I got everything I wanted, in a very short amount of time. I cannot say the same thing with Eric Sprott. I have nothing against him, but Eric Sprott makes me loose money. And not Derek Foster. So who’s best now at the investing game? Derek Foster, of course, and me in second place ok? lol

Jean-François Tardif left on top of his game and Eric Sprott well, Eric Sprott is leaving an empty basket to investors. I just hate the guy. But it was mean to be this way. Especially after what he did to Jean-François Tardif. As for BMO Bank of Montreal, they fired and look what happen to them, a HUGE mortgage fraud, their InvestorLine is just very awful and how many other thing. Life is a spinning wheel. Don't you ever think that you can go cheating and lying without any consequences. That's the hand of God, no matter if you believe or not.

Small investors like myself would be nothing at all without the Derek Foster, Jean-François Tardif and Steve Martin of this world. That's a fact. Because it's all about "picking". Picking the right stocks, and picking the right guru. ;0)

My investment portfolio in date of September 13, 2010

Savings:
1 500$

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 2 082.36$
Timminco (TIM): 86$
Blue Note Mining (BNT): 36$
Bank of Nova Scotia (BNS): 5 744.83$
Hanwei Energy Services (HE): 126$
Methanex Corporation (MX): 2 564.70$
Fortis (FTS): 3 282.82$
Pembina Pipeline Income Fund (PIF.UN):
8 113.14$
Just Energy Income Fund (JE.UN): 10 715.19$
Yellow Pages Income Fund (YLO.UN):
2 416.05$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 585$
Pengrowth Energy Trust (PGF.UN): 2 242.57$
Enbridge Income Fund (ENF.UN): 4 803.20$
Corby Distilleries Limited (CDL.A): 3 100$
Davis + Henderson Income Fund (DHF.UN):
1 830$
Premium Brands Holdings Corporation (PBH):
2 780$
EnCana Corporation (ECA): 6 010$
Cash: 11.87$

TOTAL: 58 529.73$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 726.70$
The Consumers’ Waterheater Income Fund
(CWI.UN): 1 989.96$
Sprott Canadian Equity Fund:
5 597.76$
Dumont Nickel Inc. (DNI): 402.50$
Cash: 63.81$

TOTAL: 10 780.73$

RSP investment portfolio:
Claymore Gold Bullion ETF (CGL): 3 788.98$
EnCana Corporation (ECA): 3 005$
Emera Incorporated (EMA): 5 712$
Cash: 38.08$

CIBC Dividend Growth Fund: 514.39$
CIBC Emerging Markets Index Fund: 429.11$
CIBC Monthly Income Fund: 1 004.11$

Energy and Base Metals Term Savings (Indexed term savings):
503.46$
Natural Resources Term Savings (Indexed term savings):
502.06$

GIC National Bank: 1 192.64$
GIC Plus: 500$

TD Canadian Bond: 117.12$
TD Monthly Income: 106.92$
TD Emerging Markets: 85.76$
TD Energy: 81.24$
TD Precious Metals: 122.62$
TD Latin American Growth: 98.36$
TD Entertainment and Communications: 109.61$
TD Dividend Growth: 200.38$
TD U.S. Mid-Cap Growth: 100.35$

Maritime Life International Equity Fund
(Templeton): 623.65$
Manulife Simplicity Growth Portfolio: 854.51$
Maritime Life CI Harbour Seg Fund: 991.04$
Maritime Life Fidelity True North Seg Fund: 967.58$
Maritime Life Trimark Europlus Seg Fund: 599.76$

Great-West – various: 1 753.62$

RBC Canadian Dividend Fund: 520.22$
RBC U.S. Mid-Cap Equity Fund C$: 1 747.44$
RBC Global Resources Fund: 895.20$
RBC O’Shaughnessy International Equity Fund:
602.35$
RBC O’Shaughnessy All-Canadian Equity
Fund: 1 058.38$

GIC Canadian Market: 1 000$

TOTAL: 29 825.94$

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

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(124$):
100 800.40$

I am now at 100 074.24$

I make it! My goal is reach, I now hold more than 100 000$ in assets. This being on date of September 9, 2010.

How does it feel? EXCITING! And it’s not going to stop here!

I have almost 5 000$ available on my TD credit line, I just cannot say how much it is tempting to transfer that money into my TD Waterhouse online broker account!

My next goal: 150 000$ in assets. It’s going to be FUN! So stay tune because hot stuff is on the way: more investment, more money and more dividend!

My stock investment portfolio in date of September 9, 2010

Savings:
1 500$

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 2 149.70$
Timminco (TIM): 80$
Blue Note Mining (BNT): 38$
Bank of Nova Scotia (BNS): 5 646.39$
Hanwei Energy Services (HE): 120$
Methanex Corporation (MX): 2 542.04$
Fortis (FTS): 3 180$
Pembina Pipeline Income Fund (PIF.UN):
8 130.06$
Just Energy Income Fund (JE.UN): 10 820.61$
Yellow Pages Income Fund (YLO.UN):
2 411.50$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 565$
Pengrowth Energy Trust (PGF.UN): 2 196.59$
Enbridge Income Fund (ENF.UN): 4 819$
Corby Distilleries Limited (CDL.A): 3 090$
Davis + Henderson Income Fund (DHF.UN):
1 844$
Premium Brands Holdings Corporation (PBH):
2 694$
EnCana Corporation (ECA): 5 986$
Cash: 11.87$

TOTAL: 58 324.76$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 690.91$
The Consumers’ Waterheater Income Fund
(CWI.UN): 1 961.12$
Sprott Canadian Equity Fund:
5 518.88$
Dumont Nickel Inc. (DNI): 402.50$
Cash: 63.81$

TOTAL: 10 637.22$

RSP investment portfolio:
Claymore Gold Bullion ETF (CGL): 3 785.60$
EnCana Corporation (ECA): 2 894$
Emera Incorporated (EMA): 5 595.72$
Cash: 38.08$

CIBC Dividend Growth Fund: 509.48$
CIBC Emerging Markets Index Fund: 422.84$
CIBC Monthly Income Fund: 997.24$

Energy and Base Metals Term Savings (Indexed term savings):
503.46$
Natural Resources Term Savings (Indexed term savings):
502.06$

GIC National Bank: 1 192.64$
GIC Plus: 500$

TD Canadian Bond: 116.95$
TD Monthly Income: 105.85$
TD Emerging Markets: 84.20$
TD Energy: 80.32$
TD Precious Metals: 122.07$
TD Latin American Growth: 96.43$
TD Entertainment and Communications: 107.73$
TD Dividend Growth: 197.47$
TD U.S. Mid-Cap Growth: 99.19$

Maritime Life International Equity Fund
(Templeton): 614.36$
Manulife Simplicity Growth Portfolio: 846.51$
Maritime Life CI Harbour Seg Fund: 979.23$
Maritime Life Fidelity True North Seg Fund: 961.03$
Maritime Life Trimark Europlus Seg Fund: 593.98$

Great-West – various: 1 753.62$

RBC Canadian Dividend Fund: 514.52$
RBC U.S. Mid-Cap Equity Fund C$: 1 722.77$
RBC Global Resources Fund: 872.23$
RBC O’Shaughnessy International Equity Fund:
592.12$
RBC O’Shaughnessy All-Canadian Equity
Fund: 1 046.56$

GIC Canadian Market: 1 000$

TOTAL: 29 448.26$

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

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(124$):
100 074.24$

I received Just Energy Income Fund (JE.UN) dividend for September 2010

This is what I had been waiting for! I finish work early today, around 7:30pm actually as I was exhausted I begin to suffer form back pain. So I walk around St-Catherine, saw an old colleague to who I say hello, I went by the groceries store as I feeling to eat some salmon, come back home, clean a little, log in my laptop and….. there I saw them, my dividend from Just Energy Income Fund (JE.UN)! WOW! I had received 77.29$ in dividend income from Just Energy Income Fund. This is adding 5 new units to my collection, which mean that I currently hold 753 units of Just Energy Income Fund!

My back begin to hurt today and when it does, its mean I am in need of walking, even if I walk everyday to go to work. I had been working a lot more than my usual 6 hours shift at work and it had its effect on my back. I don’t suffer from back pains on a regular basis, just from time to time but when it hurt, it hurt to hell. Anyway, I am much better. And surprise, I am only missing 224$ to pay on my TD credit line! Another surprise, for the first time ever, my non registered stocks and units portfolio had exceed the 58 000$! Time for one of my famous portfolio update? Yep for sure!

Just enough to pay off my TD credit line

I received my paycheck. Not as huge as wanted, but I will catch up next pay. Luckily, I have enough to pay off entirely my TD credit line!

My non registered stocks and units portfolio is at more than 57 800$ right now. Sprott Canadian Equity Fund had passed the 37$ per unit. So it’s all very great news overall right now financially speaking. Everything is under controlled or almost. I was just upset to learn that Bank of Canada had increased a something rate of 1%. That increased do not appear so far on my TD line of credit or either on my RBC credit line but I guess it could increased. Anything can happen knowing the Tories government we have right now. I will later on work at paying more debt as overtime is currently available at my job.

Being too much in deep in the red is not good but I really appreciate my latest RBC credit line – it allows me to reach my first 100k in investment. I might be very close to my goal at this time but I am very tired, just coming from a 12 hours shift and I don’t have any energy left to spend over some portfolio update, even if it’s something I really enjoy to do. I like counting and calculating every single penny coming out of my fortune.

I just cannot wait for tomorrow to finally paid off that TD credit line.

Go go go Claymore Gold Bullion (CGL)

I had been working like crazy. Yesterday I did a 9 hours shift and today a 10 and a half hours shift. This is kind of heavy stuff for me as I usually work only a 5.5 hours shift per day on weekdays at that job. I got to get home early today since I got stuff to be done. I just hate the laundry-lunch-to-be-done-cleaning routine but those types of things need to be done once in a while right lol...

It’s raining again in Montreal. I just cannot wait for tomorrow to see how much is going to be on my paycheck. All of the money earned will go as payment on my TD credit line. After what, my TD credit line would be all paid off. I just can’t wait to receive my online earning payment. I should received a 100$ payment by the end of the month if I understood correctly. I really need another pair of shoes. The ones I have hurt my feet constantly very badly! I think about wearing sandals until I got a new pair… next week or so? I don’t know. It’s just that with the overtime available, I don’t have too much time to shop around. Second after something else, my feet might be the most precious sensible part of my entire anatomy. It’s always been like that. And it didn’t change just because I am now thirty years old lol… Finally, my laundry and lunches for the next couple of weeks are now done. I also purchase some coffee. But as you know, nothing beat Second Cup coffees and I might be running there just like always. I didn’t dye my hair for quite sometime now and it doesn’t look as ugly as I expect. I would be in need of a good hair cut anyway, as I didn’t get a cut for several months now and I know wearing my hair in a twist ponytail that I attach on the back of my head. Doesn’t look ugly, but doesn’t look sexy either. Is there anything I wouldn’t do to invest? Frugal living is a choice of live but I won’t say I had been living frugally lately as I buying a Second Cup coffee almost everyday of the week and I eat out and stuff. But lately, money is just coming out of my ears….. So very close to the 100 000$ that I decide to invest 2 000$ in gold by if not tomorrow, sometime else. That’s the main reason why you have to read this blog every single day of the week because you never know when it will be it, when it will be the day I will be updating my portfolio and say, on my classic way: I am now at 100 000$. Things are happening you know on this blog. It’s just not a matter of exposing myself and my investment and my debt, it’s more a positive message send to small investors like myself, the misses and misters nobody that hey, might not be a nobody, but that Stop Working of Derek Foster is making me rich. And it’s really happening. I am getting rich and more in deep into debt but I cannot help it, I cannot live without investing anymore. Investing had been part of my live since 2005, but lately, even while feeling “complete” with my portfolio (yeah I know, but I really wrote that lol), I want more. And I know I can make a great deal of cash on EnCana Corporation (ECA). I know I want loose my money.

Gold had reached its highest point today and Claymore Gold Bullion (CGL) had performed extremely well and I am just curious to find out if one day the Claymore Gold Bullion will pay or not an annual distribution. I think I would deserve such thing from Claymore Gold Bullion, if not by Claymore itself or if not by you.

The importance of keeping a balance between Debt, Asset and Wage

This last Friday, I almost reached the 100k in investment assets. At this point, I am very close my goal and I think that to just add up a little in order to reach that famous 100k idea of mine, I will be investing – really soon I hope – around 2 000$ in the Claymore Gold Bullion ETF (CGL). This investment won’t bring any monthly or quarterly dividend, but maybe an annual distribution. In my life so far, I had been over-excited lol over 2 things: reaching 100k in assets and reaching the equivalent of 400$ per month in dividend earning. As for the 100k, I am almost there, and when it come to the dividend income, I am currently 369$ per month (this excluding RSP). Because with the dividend earn inside my RSP portfolio, I am at more than 400$. But since the dividend earned inside RSP cannot be touch before retirement without penalties, I am not counting them in the dividend earnings. That’s why I am currently stock at 369$ per month or, if you prefer, an annual 4 428$.

I already own some Claymore Gold Bullion ETF (CGL) inside my RSP investment portfolio but not outside. Adding more units of Claymore Gold Bullion ETF (CGL) will help stabilize the value of my portfolio. Gold is always a good investment. The TSX may have exceed the 12 000 points on Friday, but will still in it. The recession is not over. So better to keep it safe and diversify. I won’t feel comfortable going in stocks only, but investing indirectly in gold is my way to diversify the whole thing.

As you can see on the previous post, I update my debt situation. I am now at 41 712.83$ in debt. My CIBC Visa card at 3.9% interest rate over a credit card balance transfer had been paid off. I am currently working at paying off my TD credit line – the one at 8.50%. I only have a balance of 974.84$ to pay – might be just a bit more now because I use my credit line this weekend but no matter what, I will be able to pay it all with this upcoming paycheck of this week. This upcoming payment will bring my debt down to 40 738$. Still quite high, but nothing to worry about since my investment portfolio worth more than 99 000$. I can pay more than 2 times the amount of debt that I own (this including RSP money…).

Of course, having 40 738$ in debt is quite a lot no matter what and I won’t say the opposite. The interest paid over the debt is quite huge on an annual basis. We are talking here of 2 273.59$ in interest money. Yes, it’s a lot. But I have a plan! Just like I taught, I didn’t receive any new offer this month coming from CIBC Visa for a credit card balance transfer. It was a one time deal. In January, I have a 7 974.10$ at 4.9% that is ending in January (another credit card balance transfer), this one at TD. How do I plan to cut off the interest paid on my debt? By using margin.

I talk about using margin previously and said it was a no-no. But I have investment AND debt so why not taking advantage of margin? Especially knowing that the interest rate is only of 3.5% at TD Waterhouse. This is not a new idea and had been bring by another blogger. The idea is to use the margin money to pay off some debt and one pay, the credit line would stay debt-free in case of a margin call.

This is what could happen in January (or even before who knows) if my margin got approved:

1) Transfer of 5 000$ from my TD credit line to my TD Visa (leaving 2 974.10$ to pay)
2) Use the saving of October-December 2010 to pay off the amount left 2 974.10$. (This meaning no new investment because of the wage I am living on right now).

Depending of the money available on the margin, I could used the money left to pay off my RSP credit line. The payment would transform the RSP credit line into a regular credit line (at 11.5% interest rate – very bad for a credit line). I could use the money to pay off the margin in case of a margin call.

Also, always depending of the amount available, I could use the margin to pay off my newest credit line of 10 000$ at 7.27%. But this is something else.

If doing this, it would be important not to use the credit line anymore and remain debt free on them. In case of a margin call, money needs to be available immediately.

At this point, I am still thinking about the margin – it’s something I keep in the back on my head. I am not ready for margin and it’s not something I really wanted to get involved in, but the door stays open. As for my next investment, I am not in a rush. I prefer to keep everything simple so I won’t loose myself in debt. I got what I wanted with my latest credit line at 10 000$, I won’t go deeper into debt (kind of funny reading this back while writing, because I said kind of the same thing after receiving my 10 000$ RSP credit line just last March…) lol… But this time, I am serious about it, going too in deep in the red would = danger.

While dealing with debt, it’s important to keep a good balance between debt, assets and monthly salary. I am pretty good at balancing – I guess that’s why I got my newest credit line just last week. Without debt, no 100k. But debt needs balance. Which mean that you need to keep in a good balance in order to be able to live with debt. To understand all this, let’s take a look at my budget, including all minimum payment that need to be made each month (this budget being valid for the period of September 2010-January 2011):

Monthly rent: 545$ (all included)
Internet: 38$
Student loan: 98$
RSP credit line: 108$
Credit line: 100$
Other credit line: 61$
TD Visa: 50$
Banking fees: 6$

TOTAL of minimum: 1 006$

+ 250$ on groceries

= 1 256$

This bring the minimum of the minimum needed at 1 256$. I don’t have cable, cell phone or any fancy things. Having 1 256$ as expenses to deal with each month is not that much. I can handle this by working part-time at my day-time job only. This means that each month, I have more than needed to cover the minimum expenses. I know that each month I earn more than 1 256$. That’s why I can currently handle the level of debt I have – but I shouldn’t be looking for more.

At this point, I am actually looking forward to decrease the amount of debt I have. I am can in a in-between I need to pay off debt and what about my new CGL investment kind of deal but life is like that. I could make that investment next week if I want. In this case, it's just a matter of what I really want.