I am now at 122 468.76$

2010 had been an AWESOME YEAR. I won't post my year in review for now, but just to add quickly that my investment goals had been reached. The major one was to reach 100 000$ in assets before the end of 2010 and I did. In result, I accumulate debt, but I consider those debts as being healthy because those debts are being hold for investment purposes. It's not money that been throw away on a Louis Vuitton purse.

On date of December 18, I hold 122 468.76$ in assets and 47 221.68$ in debt, for a net value of 75 247.08$. Not too bad! Currently, I have use my margin money at 4.52% to pay off a 5 000$ credit line at 8.75%. I also use 2 000$ on my margin money to invest in Horizons Gold Yield Fund (HGY.UN). To evaluate the situation better, let's review my dividend income. Here's an update of my dividend earnings:

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 57.20$
Bank of Nova Scotia (BNS): 209.72$
Methanex Corporation (MX): 63.86$
Fortis (FTS): 120.91$
Pembina Pipeline Corporation (PPL): 669.24$
Just Energy Income Fund (JE.UN): 952.32$
Yellow Media Inc. (YLO): 376$
Bell Aliant Regional Communications Income Fund
(BA.UN): 381.90$ (I am counting the dividend for 1.90$ per unit).
Pengrowth Energy Trust (PGF.UN): 178.08$
Enbridge Income Fund (ENF.UN): 366.85$
Corby Distilleries Limited (CDL.A): 112.56$
Davis + Henderson Income Fund (DHF.UN): 241.20$
(I am counting the dividend for 1.20$ per unit)
Premium Brands Holdings Corporation (PBH):
240.72$
EnCana Corporation (ECA): 160.80$
iShares S&P/TSX Capped REIT Index (XRE): 43.74$
Horizons Gold Yield Fund (HGY.UN): 130$

TOTAL: 4 305.10$

Tax-free savings account (TFSA):
The Consumers’ Waterheater Income Fund
(CWI.UN): 274.30$

TOTAL: 274.30$

RSP investment portfolio:
EnCana Corporation (ECA): 80$
Emera Incorporated (EMA): 238.96$

TOTAL: 318.96$

OVERALL TOTAL: 4 898.36$

Good, but this calculation do not include the special dividend that usually pay Just Energy Income Fund (JE.UN) on an annual basis (yeah yeah, on top of the regular dividend!). The special dividend of Just Energy Income Fund (JE.UN) is usually of 20 cents per unit. I am adding a 153.60$ to this current 4 898.36$ because I had been paid a special dividend of Just Energy Income Fund for 2 years in a row now. That's the usual stuff now, special dividend from Just Energy.

Sprott Inc. (SII) also pay a special dividend, but the amount is not steady. But let's remember that Sprott Inc. is still a young stock (of 2008).

OVERALL OF THE OVERALL dividend earning: 5 051.96$

Ok, so here we are:

122 468.76$ in assets (WOW!);
5 051.96$ in yearly dividend payments (yeah!);
47 221.68$ in debt (!!!);
2 516.16$ on annual interest for the debt (outchh).

I have way too much debt, but adding those debts were the only I had to reach the 100 000$ I wanted so much! I currently hold more than 100k. Should I sell the 22 468.76$ left to pay off debt? Well, my answer is NO. I won't use the extra 22 468.76$ that I have in assets to pay my debt because I am not very interesting at paying debt at this time. It's a risk, but it's a risk I am willing to take. But the risk is calculated.

The amount of dividend I earn on an annual basis can pay in 2 times my annual interest paid on my debt. so this is all pretty manageable. But I should not go deeper into debt even for investment purposes because passing the 47k in debt could be passively dangerous.

Also, another reason why I don't want to pay off debt is that I want to reach 150 000$ in assets for 2011. Possible or not? We'll see, so stay tune ok? STAY TUNE :0) Because the best (or the worst?) is to come.

The benefits of adding iShares S&P/TSX Capped REIT Index Fund (XRE) to your portfolio

Our very last investment was little (less than 800$), but its a 4 stars Morningstar Canada investment: iShares S&P/TSX Capped REIT Index Fund (XRE). I currently own 54 units of iShares S&P/TSX Capped REIT Index Fund (XRE).

With a net asset value of more than 1 billion of dollars (that's right, 1 billion!), the iShares S&P/TSX Capped REIT Index Fund (XRE) offer a great exposure to the Canadian real estate investment trust, commonly known as REITs. The iShares S&P/TSX Capped REIT Index Fund (XRE) offer exposure to the financial sector (99.95%), a sector that is still strong in Canada despite the worldwide recession. Personally, my overall portfolio didn't have a high exposure to the financial sector. As financial stocks, I hold Bank of Nova Scotia (BNS), Davis + Henderson Income Fund (DHF.UN) and Sprott Inc. (SII). Before iShares S&P/TSX Capped REIT Index Fund (XRE), I wasn't involve in the real estate sector - but now I am!

If just like me, you worry about diversification (like enough is never enough right) and you want to make sure to invest in a financial product that is already ultra-diversify by itself? Well, the iShares S&P/TSX Capped REIT Index Fund (XRE) may be a good option for you!

When investing in the iShares S&P/TSX Capped REIT Index Fund (XRE), you directly investing in major players of the Canadian real estate sectors:

RioCan REIT (REI.UN): 24.68%
H&R REIT (HR.UN): 12.64%
Canadian REIT (REF.UN): 9.37%
Calloway REIT (CWT.DB.B): 8.31%
Boardwalk REIT (BEI.UN): 7.13%
Primaris Retail REIT (PMZ.UN): 5.95%
Dundee REIT (D.UN): 5.66%
Canadian Apartment Properties REIT ("CAPREIT") (CAR.UN): 5.40%
Cominar REIT (CUF.UN): 5.05%
Chartwell Seniors Housing REIT (CSH.UN): 4.70%

Sound interesting? Well, the iShares S&P/TSX Capped REIT Index Fund (XRE) trades on the Toronto Stock Exchange. Looking for an investment for your 2010 RSP? Good news: the iShares S&P/TSX Capped REIT Index Fund (XRE) can be hold inside a RSP register account.

In reason of its high exposure Real Estate Investment Trust (REIT), I probably won't increase the number of units that I hold in the iShares S&P/TSX Capped REIT Index Fund (XRE). REITs are new for you to? According to Investopedia, REIT is "A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages". Companies such as RioCan REIT (REI.UN) and H&R REIT (HR.UN) are involve in the real estate through different activities. And because of their direct participation in the real estate sector, the REITs, receive a special tax considerations.

iShares S&P/TSX Capped REIT Index Fund (XRE) can be a good investment to hold in a non-registered account. The iShares S&P/TSX Capped REIT pays a monthly dividend known as a monthly cash distribution. As example, for the month of November 2010, the monthly cash distribution for the iShares S&P/TSX Capped REIT Index Fund (XRE) was of 0.06175$ per unit.

It won't represent that much of a dividend for us - only 3.3345$ per month - but still that more than enough to purchase a medium coffee at Second Cup. Merry Christmas!

My stock investment portfolio on date of December 18, 2010

Savings:
1 327.75$

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 3 874$
Timminco (TIM): 68$
Blue Note Mining (BNT): 52$
Bank of Nova Scotia (BNS): 6 056.20$
Hanwei Energy Services (HE): 117$
Methanex Corporation (MX): 3 139.44$
Fortis (FTS): 3 648.70$
Pembina Pipeline Corporation (PPL):
9 330.75$
Just Energy Income Fund (JE.UN): 11 397.12$
Yellow Media Inc. (YLO): 2 961$
Bell Aliant Regional Communications Income Fund
(BA.UN): 5 276.25$
Pengrowth Energy Trust (PGF.UN): 2 728.44$
Enbridge Income Fund (ENF.UN): 5 423$
Corby Distilleries Limited (CDL.A): 3 316.50$
Davis + Henderson Income Fund (DHF.UN):
4 044.12$
Premium Brands Holdings Corporation (PBH):
2 860.08$
EnCana Corporation (ECA): 5 706.39$
Sprott Physical Silver Trust UTS (PHS.U): 2 590$
iShares S&P/TSX Capped REIT Index (XRE): 713.88$
Horizons Gold Yield Fund (HGY.UN): 2 000$
Cash: 97.72$

TOTAL: 75 400.59$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 935.95$
The Consumers’ Waterheater Income Fund
(CWI.UN): 2 823.18$
Dumont Nickel Inc. (DNI): 316.25$
Cash: 3.27$

TOTAL: 6 078.65$

RSP investment portfolio:
Sprott Canadian Equity Fund: 7 443.34$
Claymore Gold Bullion ETF (CGL): 4 187.82$
EnCana Corporation (ECA): 2 839$
Emera Incorporated (EMA): 6 466.34$
Cash: 66.99$

CIBC Dividend Growth Fund: 544.76$
CIBC Emerging Markets Index Fund: 420.84$
CIBC Monthly Income Fund: 1 033.89$

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

GIC National Bank: 1 147.42$
GIC Plus: 500$

TD Canadian Bond: 115.25$
TD Monthly Income: 107.99$
TD Emerging Markets: 90.28$
TD Energy: 94.13$
TD Precious Metals: 146.76$
TD Latin American Growth: 104.30$
TD Entertainment and Communications: 122.58$
TD Dividend Growth: 204.80$
TD U.S. Mid-Cap Growth: 116.62$

Maritime Life International Equity Fund
(Templeton): 652.99$
Manulife Simplicity Growth Portfolio: 916.73$
Maritime Life CI Harbour Seg Fund: 1 079.34$
Maritime Life Fidelity True North Seg Fund:
1 041.04$
Maritime Life Trimark Europlus Seg Fund: 644.05$

Great-West – various: 1 751.69$

RBC Canadian Dividend Fund: 540.44$
RBC U.S. Mid-Cap Equity Fund C$: 2 019.26$
RBC Global Resources Fund: 1 171.86$
RBC O’Shaughnessy International Equity Fund: 656.56$
RBC O’Shaughnessy All-Canadian Equity
Fund: 1 207.56$

GIC Canadian Market: 1 000$

TOTAL: 39 440.15$

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

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(181.62$):

122 468.76$

My debt situation on date of December 18, 2010

Line of credit: 9 498.17$ at a low interest rate of 4.75% (RRSP credit line rates) = 451.16$ in annual interest
Line of credit: 4 900$ at a low interest rate of 4% (credit line rates) = 196$ in annual interest
7 946.31$ on a TD Canada Trust credit card at a low interest rate of 4.9% ending in April 2011 (result of a credit card balance transfer)
= 389.37$ in annual interest
Line of credit: 4 911$ at 8.75% (credit line) = 429.71$ in annual interest PAID OFF
Student loan: 7 891.46$ a low interest rate loan at 5.50% (student loan rate) = 436.87$ in annual interest
Line of credit: 10 000$ at 7.27% (credit line rates) = 727$ in annual interest
6 985.74$ at a low interest rates of 4.52% (margin money coming from TD Water house): = 315.76$ in annual interest

TOTAL: 47 221.68$
TOTAL in annual interest: 2 516.16$
[In date of December 18, 2010]

Public offering of Horizons Gold Yield Fund (HGY.UN): I am in!

I didn't hear about it for about 2 days, but today was the day, I had been able to invest in 200 units of Horizons Gold and I just cannot wait to actually have them in my investment portfolio. I am not working this weekend, so I will be able to publish an update of my online stock trading accounts.

This is my second day under margin. I am getting use to it pretty quickly. It's just that the whole thing had bring a lot of changes in my online stock trading accounts. I gave a quick call to TD Waterhouse investor services just to find if everything was in order, and it was. Margin can appears as being complicated at first, but it's truly not.

Buying stocks on margin? I won't recommend to massively use margin accounts money to invest. In my case, only 2 000$ had been borrowed from my margin to invest. Just to keep my peace of mind, I don't plan to use 30% of the margin money available. So all this combine together, not use more than 30%, use margin to mostly pay existing debt is for me playing on the safe side. Also, I almost only hold line of credit loans (but none of them is actually a refinance home equity line of credit. Since I am not a home owner, I won't qualify to get a low interest home equity loan). This mean that I hold renewable credit. In case of need, I can reapply the money back to the margin accounts.

So thanks to the Dividend Lover (he's the debt busters who provide me the idea of using margin money to pay off some debt at a higher interest rate), my 5 000$ line of credit at 8.75% is paid off. At 8.75%, I wasn't holding one of the best line of credit rates there is out there. I currently has used 7 000$ of my margin money available.

I am now a debt busters: my 5 000$ line of credit at 8.75% with TD Canada Trust is now paid off!

The weekend is almost there and I cannot wait! It's going to be my first weekend off since quite some time and I am quite happy about it. Even if this is going to cut on the cash available for investing.

Remember that I am having problem to transfer money from my online broker day trading account of my TD Waterhouse online section to my line of credit? Well, that's because my non-registered Canadian cash broker account is technically dead, but I continue to receive dividend payment in it. This could last a little while, but I wasn't provided an exact delay. It's just annoying since during that delay, I have no clue of who's paying me those dividend because I can no longer access my cash account... I have no choose other than to call TD Waterhouse investor services to find out. Also, I cannot proceed myself to any transfers from my cash discount broker account to line of credit account or what so ever else other account. Nothing can be transfer from my cash account anymore.

Basically, this mean that my online commodity broker Canadian cash account no longer exist. From now on, if I want to trade commodities online using cash coming from my very own pockets, I have to deposit the money in what is now my margin account. Example: let's say I have 2 000$ from my personal cash that I want to use to invest in my non-registered account, I will have to deposit the 2 000$ in my margin account. My 2 000$ in personal cash will be add to the 43 653.66$ that I currently hold in my margin account, to make a total of 45 653.66$. After what, I can trade using 2 000$ from the margin account. Technically, there's no more Canadian cash account, just a margin one, but I can still purchase stocks using my own money through TD Waterhouse securities.

I had that 8$ and something cents in the Canadian cash account that I was desperately looking to get transferred into my line of credit, the one at 8.75% in interest rate. The TD Waterhouse rep proceed to the money transfer since it's now impossible for me to proceed myself. After what, I also ask her to take the margin money to pay off completely that same line of credit. This mean that my 5 000$ line of credit at 8.75% is now completely paid off. But now that I am looking into my broker account, under cash, I have minus (-) and the amount that I requested to be transfer on my line of credit.... Nice, but the minus is under cash and not the margin...

This is confusing to start with because I am not use to margin and the information appear all in a different way that what its use to be. And now, I am wondering if the transferred had been done properly or not... lol... I am pretty sure yes, but still, that minus under cash is intriguing.

The interest rate on the margin account is currently of 4.52%. This is very good compare to the 8.75% of my 5 000$ line of credit. I am very happy to now have that line of credit completely paid off - and it will remain paid off. Borrowing cash on my margin was for me one of the best creditsolutions that I could choose.

In case of a deadly situation on the stock market (stock market loosing a lot of points on the same day), the money need to be available and need to be ready to get transferred back on the margin in case of need. But can such situation could happen? Well, it happen in 2008, and it could happen again. Also using only 30% of the money available of the margin account like I was suggested to do by a TD Waterhouse rep is a very good advise that will help me to minimize the risk I take by borrowing money online on my margin account. I will definitively be sticking to the 30% rule. Because TD Waterhouse can sell the assets even without giving first a margin call. REMEMBER: TD WATERHOUSE HAS NOW THE AUTHORITY ON MY STOCK DISCOUNT BROKER ACCOUNT. (lol...) But seriously talking, that's what you need to know about margin and that's exactly the reason why you need to be careful when buying stocks on margin.

The use of 5 000$ on my margin do not requested a minimum payment every month, but I will be paying the equivalent of the interest amount on a monthly basis. In my personal financial situation, margin is a great tool to use to pay off debt hold on line of credit at a higher interest rate (8.75% in this case). Margin is a great tool, but it will require me to monitor my account on a daily basis and preferably - many times during the day (if not just the Canadian stock markets). But since I plan to use only 30% of the margin money available, I play safe and hopefully, it will be just fine. I am understanding a bit better now and know a bit more of where I am going with all this. Margin is not difficult, but as delicate as an English rose.

Some technical problems with my new TD Waterhouse stock margin account

So far, no news for my public offering in Horizons Gold Yield Fund (HGY.UN). I call TD Waterhouse today as I had been promised a call back today but never got a call... It's always like that with TD Waterhouse, they always promised to call you on this or this and never return the call. If it wouldn't be for the super smooth-strong teddy bear voices of some of their male brokers, it would had been a long time ago that I would had left the Canadian online broker TD Waterhouse... lol... But hey, nothing to worry about. I won't leave TD Waterhouse anytime soon for many reasons. One of the reasons being that at 9.99$, TD Waterhouse trade commission is one of the lowest - this commodity trading broker offer one of the cheapest online trading. Overall, as a commodity trading broker, TD Waterhouse had been very good to me. I have all the credit products I needed and requested with TD financial. I basically never been refused anything. I am not looking to get the moon, just a few things of my own.

As with this public offering for Horizons Gold Yield Fund (HGY.UN), the units trade at 10$ each, minimum investment needed being of 1 000$, commission free! That's right, there will be no I want to invest 2 000$ using the margin of my online stock trading account. I should know for sure by tomorrow if I can move on with my direct public offering proposition or not. Ok, it could sound silly, but it's not. Why? Well, because of the minimum required of 1 000$. At 1 000$ any investor living next door can participate in the public offering of Horizons Gold Yield Fund (HGY.UN). And really, those TD Waterhouse brokers need to work so I am giving them some work to do. No work, no job right? I am the one giving TD Waterhouse discount commodity brokers business.

And talking business, the business is going well. My online earnings continue to go up. We are not talking about hundreds of dollars per day here, just a few bucks, but that's enough for now. I am still without any metro pass. I am a New Brunswick girl, use to cold weather... I am doing ok without my metro pass for now. I am just very happy to be able to keep that 70$ (price for a metro pass) in my pockets. also, Idecide not to purchase a new pair of winter boots to save more. I am still working on my HubPages. I have many articles subjects on the way. Finding time to write is not that hard, but what is hard is to write. Does that sound strange just like for all of the rest? Anyhow, I am just loooking forward to save more money and stop purchasing sushi and other foodssss. During the last couple of months, I didn't pay to much attention to my budget but now that I have that stock margin account, I want to save more because I want to pack my non registered portfolio of more units and stocks.

As for the online investing business, the overall of what I hold at the commodity trading broker TD Waterhouse is now at 97 462.04$. I am now very close to the 100 000$ in my broker account and having all that money at TD Waterhouse just show you have much I feel secure at TD. But no matter how much I like TD, seem that lately, I am experiencing some technical problems, following the apparition of my stock margin account in my non-registered Canadian account.

The problems started when I first received my latest Just Energy Income Fund (JE.UN) dividend. I had received the dividend in my cash account, which was not related to by now stock margin account. The dividend (7$) left over and the 5 units earn of the DRIP where lying in there all alone, in the cash account. So I call TD Waterhouse, and they proceed with the transfer from cash to the stock margin account, so the 5 new Just Energy Income Fund (JE.UN) units can join the rest of the units... I was able to get this done over the phone. One problem that occur also was that I was able to see, in my overall view, that I had received 80$ in my cash account, but when I click on the link, I wasn't able to access the account...

On date on today again, I have a 8$ in cash (in the cash account) that I want to transfer over my credit line, but I cannot proceed with the transfer. I had been trying in 2 different occasions now and its just not working. Also, remember that I plan to pay my 5 000$ TD Canada Trust credit line at 8.75% using my stock margin account? I was about to proceed with the transfer from my stock margin account to my TD credit line. But while selecting my stock margin account, I saw the amount of my investment (73 000$ and a bit more) instead of the amount available on the stock margin account (something around 40 000$). At the end of what, confuse, I did not proceed with the transfer. So I guess I will have to call TD Waterhouse again tomorrow see what's going on and ask them to proceed to the transfer for me.

Holding a stock margin account is even more dangerous that what I first taught!!!

Following the application of my stock margin account, TD Waterhouse send me a charming little kit containing all the information related to margin. I read all the information related to my newest stock margin account of course and well, find it discouraging to even use my stock margin account. Why?

Well, it seem like TD Waterhouse had the right to sell any of my investments without giving me a "margin call", without any notifications. Depending of the stock market conditions, TD Waterhouse reserved the right to sell investment in case of a drastic loss of assets value.

Previously before, I was told by a TD Waterhouse broker that there was a 3 days delay to put the account back in standard and that there was going to have a call before anything being done. But it appears that none of this is true! When it come to investment, I am not even sure if anyone of TD Waterhouse know what they are talking about. Really to that point. And yes, sometimes, I hate TD Waterhouse. I really do. I am frustrated.

Can you explain to me how am I suppose to use margin than? That's exactly here that come the 30% rule I guess, coming from another TD Waterhouse rep I spoke to. This mean that to play safe and not be stock on a non-authorized assets sell, better not to use more than 30% of the money available in a stock margin account. 30% or even less. It's all experimentation at this point but I won't use more than 30% of my margin money and also, I plan just to do a one time investment deal using my margin money (the 2 000$ in Horizons Gold Yield Fund (HGY.UN)) and pay off my 5 000$ credit line at 8.75% and I think that after that, it will be all. I won't use more of my margin money because I am now a... margin chicken (and not margin sexy, not anymore). Not all all. Margin is not sexy at all.

Despite the margin suffering, I had receive a surprise: Quebec province send me a 149.50$ cheque! That's nice, especially before Christmas. With the money left on my line of credit (160$), it make a nice little extra. I just received my paycheck, and even after paying my laptop, I have an extra 623$ available: for a Louis Vuitton monogram wallet (lol) or... a new investment. I am thinking about my next investment, but no specific idea yet. I could simply keep the money in my banking account for once. And it could be what will happen because I won't be working at my weekend job until middle or end of January so in the meantime, having a couple of extra hundreds of dollars available just in case of need won't hurt. But to say the true, I would like to invest again in silver through the Sprott Physical Silver Trust (PHS.U). One thing I don't like about the Sprott Physical Silver Trust (PHS.U) is that no matter how good the investment is, it won't bring any dividend in. I have to say, I am very tempt to invest again before the end of 2010, no matter how little the dividend.

The Tourist with Johnny Deep and Angelina Jolie

It was great! Very fun movie! Angelina Jolie is so perfectly sophisticated. And Johnny Deep stunning and funny. I don't understand the bad critics over the film: maybe it is some jealousy? Really, I don't know. I also went saw the last Harry Potter recently. I really like as well. 

My online earnings are going well. I think it's the Maryse Ouellet effect lol... Thanks to my generous readers, I am very close to the 200$! I would like to reach the 200$ by the end of the month and even better, I would like to reach 200$ every month. With my low budget, an extra 200$ per month will make me more than happy. I didn't stick to the minimum budget I advertise in the previous post lately, but I could really make a living under 1 200$ per month.

I reached the 97 000$ mark in my TD Waterhouse broker account. I am just missing 3 000$ before hitting the 100 000$! Would that be enough to have a President account with TD Waterhouse? With a President account, I could get the margin at 3.5%.... Interesting! Do I have what it take to have a President account with TD Waterhouse? I doubt, but it doesn't cost anything to ask, even anonymously...

Remember the investment I want to do in the Horizons Gold Yield Fund? Since TD wasn't list for the public, it make it a bit more complicated but I hope it turn well. I should know by tomorrow. I will keep you post as always ;0))

Enbridge Income Fund (ENF.UN) will soon be from the S&P/TSX Composite Index

Enbridge Income Fund (ENF.UN) had performed well lately and in result, our Enbridge Income Fund (ENF.UN) will soon be add to the Standard & Poor's Canadian index operations! Enbridge Income Fund (ENF.UN) will be add to the Standard & Poor's Canadian index on December 20.

Those are really great news for Enbridge Income Fund (ENF.UN). Enbridge Income Fund (ENF.UN) is a great alternative to Enbridge Inc. (ENB) stocks. Currently, Enbridge Income Fund (ENF.UN) units trades at 17$ and Enbridge Inc. (ENB) stocks trade at... 55.77$!

With Enbridge Income Fund (ENF.UN), you get more for your money: more shares and more dividend.

I had acquired some units of Enbridge Income Fund (ENF.UN) when their trading price was below 14$. This investment had bring a great deal of stability to my investment portfolio, a bit like Corby Distilleries Ltd. (CDL.A).

At the opposite of Enbridge Income Fund (ENF.UN), Bell Aliant Regional Communications Income Fund (BA.UN) will be delete from the index on December 20. In result of the quarterly S&P/TSX Composite Index review, Bell Aliant Regional will be deleted from the Standard & Poor's Canadian index operations on December 20.

How can a margin account at TD Waterhouse can help simplify your budget?

My non registered portfolio is currently at 73 049.09$, which represent a nice increase of somewhere close to 2 000$ compare to my latest update on date of December 2nd. My online broker account in Canadian dollars is now registered under margin. The transformation is now completed.

Dividend from Just Energy Income Fund (JE.UN)

I had received 80.21$ in dividend from Just Energy Income Fund (JE.UN). I had received this dividend payment in my cash account, so I had to call to place the transfer. Having a margin mess up my broker account, but once you get it, its pretty easy to find your way.

Budgeting made easy using margin money to pay off debt at a higher interest rate

I own several credit products that I use for leverage. This meaning that I use money available on credit lines and credit card balance transfer to invest. So far, I had been successful doing so. But one problem being the interest rate paid on the money borrowed.

Here are my debt:

9 671.43$ at 4.75% (RRSP credit line) = 459.39$ in annual interest.
Minimum monthly payment required: 108$

4 900$ at 4% (credit line) = 196$ in annual interest.
Minimum monthly payment required: 100$

7 957.05$ at 4.9% ending in April 2011 = 389.90$ in annual interest
Minimum monthly payment required: 44$

4 911$ at 8.75% (credit line) = 429.71$ in annual interest
Minimum monthly payment required: 150$

7 943.01$ at 5.50% (student loan) = 436.87$ in annual interest
Minimum monthly payment required: 98$

10 000$ at 7.27% (credit line) = 727$ in annual interest
Minimum monthly payment required: 60.58$

TOTAL in debt: 45 382.49$
TOTAL in annual interest: 2 638.87$
TOTAL in minimum payment required: 560.58$

Currently at TD Waterhouse, unless you own a President account, the interest rate on margin is of 4.5%. The latest product I had apply for is a credit line of 10 000$ at RBC Royal Bank. Luckily, I only have the interest to pay as a monthly payment. As you can see, the interest rate of my credit product is relatively reasonable. My 10 000$ credit line at RBC Royal Bank is a bit high (7.27%). But my 5 000$ credit line own at TD Canada Trust is quite at a high interest rate. We are talking here of an interest rate of more than 8%, for an amount of 429.71$ in annual interest! That's way too much! Currently, that credit line is at 4 833.88$, almost full. So here's what I am planning to do: withdraw the 166.12$ to pay on my BMO Bank of Montreal credit line (where I need to pay 100$, and keep the remaining 66.12$ for Boxing Day shopping. And what's going to happen next? Well, I am going to transfer 5 000$ from my margin to entirely pay my credit line!

So forget about the Louis Vuitton purse, because there won't be any Louis Vuitton purse anytime soon, despite that 43 653.66$ that I have available on my margin account. Having a 43 653.66$ available in my margin account mean that I currently have 43 653.66$ to do whatever I want - or almost. Currently, the plan is to use some of the margin money to pay off some of my debt that are at higher interest rate.

I spoke to many TD Waterhouse representatives about margin and once advice that I had been provided was not to use more than 30% of the money available on my margin in other to avoid any catastrophic margin call. I knew from the start that I shouldn't use all the margin money available, even if its to pay off debt. In case of a margin call, I just transfer the money from my credit line to the margin account. And voilà. That's pretty easy right? Yeah but still, I think I will stick to the 30% for now. Before, I didn't come with a straight % of the margin that I should used. But just to be in good standard, I decided to stick to the 30% usage of my margin account because it make good common sense. My 30% limit on a 43 653.66$ margin account money is giving me the amount of 13 097$. So I do I plan to use that 13 097$? Here are the projects:

Purchase of 200 units of Horizons Gold Yield Fund (HGY.UN)

Amount: 2 000$

Yeah, I know. I know that previously before, I wrote that I wasn't going to use margin money to invest, but this is the only exception because this is about gold and dividend. Horizons Gold Yield Fund (HGY.UN) plan to provide a 6.5% dividend yield (for a monthly dividend earning of 10.83$).

Pay off my 5 000$ credit line at TD Canada Trust at 8.75%

Amount: 5 000$

That's sit, bye bye high interest rate!!!

And I am not even done yet. I have left 6 097$...

Pay 6 097$ on my 10 000$ credit line at 7.27%

That's pretty good stuff isn't? Well, its not over yet. Those little changes will bring a great improvement on my budget. Let's check on the before and the after:

My budget BEFORE margin use:

Internet: 51$
Rent: 555$
RRSP credit line: 108$
Credit line: 100$
Credit card balance transfer: 44$
Credit line: 150$
Student loan: 98$
Credit line: 60.58$
Usual banking fees: 5.15$

TOTAL: 1 171.73$

My budget AFTER margin use:

Internet: 51$
Rent: 555$
RRSP credit line: 108$
Credit line: 100$
Credit card balance transfer: 44$
Student loan: 98$
Credit line: 23.65$
Usual banking fees: 5.15$
Payment of the 4.5% interest rate on the amount of 13 097$: 49.12$

TOTAL: 1 033.91$


And if we continue the calculation, 1 033.91$ + 250$ (groceries and other) = 1 283.91$

Every month, I transfer 100$ of my credit line at 4% over to pay my credit card...

1 283.91$ - 100$ = 1 183.91$

While using 30% of my margin account, I can easily make a comfortable living under 1 200$. All extra money can go straight on investment.

At the end of what, I am going to end this the same way Maryse Ouellet: BE SEXY. But to this, I will add my own personal touch: BE MARGIN SEXY. But do not more than 30% of your margin, and you'll be even sexier...