My debt situation on date of April 16, 2011

9 235.70$ at a low interest rate of 4.75% (RRSP credit line rates) = 438.70$ in annual interest

4 900$ at a low interest rate of 4% (credit line rates) = 196$ in annual interest

7 803.28$ on a TD Canada Trust credit card at a low interest rate of 4.9% (result of a credit card balance transfer) = 382.36$ in annual interest

7 638.29$ at low interest rate loan at 5.50% (student loan) = 420.11$ in annual interest

5 000$ at 8.75% (credit line) = 437.50$ in annual interest PAID OFF

7 868.97$ at 7.52% (credit line rates) = 591.75$ in annual interest

37 525.06$ at a low interest rates of 4.25% (margin money coming from TD Water house): =
1 594.82$ in annual interest

TOTAL: 74 971.30$

TOTAL in annual interest: 3 623.74$
[In date of April 16, 2011]

In 2011, Jean-François Tardif is missing the spotlight

I cannot help it, I am a fan! The good looking Jean-François Tardif had been quiet since his too early retirement as a super hedge fund manager. The HubPage I wrote about him a few months back is as much hilarious as this blog post title!

These days, Jean-François Tardif is turning himself not into silver like his ex boss Eric Sprott... but into FOOD! Because everyone got to eat, even the Dividend Girl! Actually, after my rent, food is a major expensive in which I  have to cut. Anyhow, before or after announcing his retirement in 2010, Jean-François Tardif won a Globe and Mail title for his hot stock pick Premium Brands Holdings Corporation (PBH). Following what, I was, as a good investor, investing in Tardif hot Premium Brands Holdings Corporation (PBH). And I never regret it. The title can be volatile, but it’s not an outrageous volatility. I invested again in PBH a couple of weeks ago in order to qualify for their latest dividend. Following what, PBH hit a close 18$ per stock. Currently, PBH is under 17$ per stock. Probably, PBH won’t stay for long under the 17$ mark.

Mutual funds columnist Rudy Luukko from The Star had wrote an article in which he incorporate some of Jean-François Tardif comments. Very informative. PBH is in the food sector. We can easily imagine a PBH hitting the 18$ very soon. Because like always, Jean-François Tardif knows what he’s talking about. Not bad for a Quebecker. Not bad at all. And really soon, Jean-François Tardif will have a new golf partner, Eric Sprott who will probably be retiring soon.

Today is pay day! 502.39$ dividend earning in one single day of... work

Today April 15, 2011, I had received 502.39$ in dividend! I don’t earn that much in a single day of work, that’s for sure! Here’s the dividend that join the dividend girl club today:

Colabor Group Inc. (GCL): 53.82$
Data Group Income Fund (DGI.UN): 32.73$
K-Bro Linen Inc. (KBL): 9.16$
New Flyer Industries Inc. (NFI.UN): 6.63$
Pembina Pipeline Corporation (PPL): 56.81$
Premium Brands Holdings Corporation (PBH): 119.95$
Sprott Inc. (SII): 150$
Student Transportation (STB): 0.04$
Westshore Terminals Invest Corp (WTE.UN): 19$
WesternOne Equity Income Fund (WEQ.UN): 54.25$
TOTAL: 502.39$

I know, that 4 cents coming from Student Transportation (STB) is strange but I believe it’s the dividend amount money that actually didn’t DRIP. I guess something else will show up within a couple of days for Student Transportation (STB).

Previously, I had received 10.84$ from Horizons Gold Yield Fund (HGY.UN) and 59.18$ from EnCana Corporation (ECA).

The overall value of my portfolio might had decreased of something like of 4 000$. Nothing to worry about, it’s just the effect of the market volatility and if you want my point of view, nothing is better than a little plunge to keep it real. Lately, I made many changes to my portfolio, trade a lot but it worth it all the way. For the experience, but also for the gain, despite experiencing the market volatility. Nothing that I am not use to. It’s not fun to see that my portfolio worth 4 000$ less than what it usually worth. But a 4 000$ on a 160k is not that of a big deal, especially while knowing that the market will – eventually – go up again. It’s not about being too much self-confident, it’s about having faith in the market. I am extra proud of my Just Energy Group (JE) who, despite the market volatility, is exceeding the 15$ per stock! Yeah! Basically, all of my investments are extra strong, except Yellow Media Inc. (YLO) and New Flyer Industries Inc. (NFI.UN). All of the other investments are down, but not of much.

And... major announcement, finally... my investment in the Sprott Canadian Equity Fund had exceed the 8 000$! I had initially invested 7 000$ in the Sprott Canadian Equity Fund back in 2008. I now hold the investment in my RRSP. I had been very patient with the Sprott Canadian Equity Fund and it worth it all the way. I am just hoping to be on the road for a straight and continuous grow.

And good news, since I didn’t have any other investment project, I start paying off some debt! For the occasion, I use a 1 000$ of my margin at 4.25$ to pay off my 10 000$ credit line the one at 7.27%. I currently have something like 7 850$ left to pay on it. I made a self-contribution of more than 1 000$. For the first time of my investment life (since 2005)..., I use my saving to pay off some debt and for nothing else. I would like to pay off completely that credit line at 7.27%. It will increase my net worth value and leave a 67$ in my pocket. This 67$ or so is the minimum monthly payment required on my 10 000$ credit line.

Among other, I had been receiving voting package after voting package for all the companies I hold. And I didn’t even received them all yet. Many reading on the way, many votes needed to be done. But the most important vote will be the one done on May 2, Election Day in Canada! No anticipated vote for me. I will vote on the DAY. The day of May 2, the day where real Canadians, people of the country, will vote for their new leader. And no, Quebeckers shouldn’t be giving the right to vote. Quebec cheaters and liars, people of the evil forces hide behind Bloc Quebecois Gilles Duceppe. A shame for the Canadian nation. In the meantime, while waiting for justice to be done, I will be counting my money, meaning I will update my portfolio value. The 200 000$ in asset is not that far away. Be ready.

2010 tax declaration done and completed $$$

When I work I work. I got my 2010 tax declaration completed. I own a total of 1 300$. This amount could be view as being quite big. But it’s my own fault. Let me explain. My weekend job does not take any taxes of my paycheck because I only work there 16 hours per week, generally speaking. From the 350$ gross salary, I guess the provincial and federal taxes would normally take 40$ per pay. 40$ x 26 weeks = 1 040$... See, so that I pay taxes or not on my weekend job pay to not really change anything but if I want to avoid paying extra in taxes next year, I will have to sign for a 40$ deduction on each and single paycheck. I don’t even work there all year long anyway. But we have to count as well my Google AdSense money (that unfortunately I had to declare) among other things. Taxes are increasing like crazy in Quebec. I have an extra 25$ contribution to make for Quebec Health Care. Next year, it will be an extra 100$ and the year after 200$. That’s what I had been told. Not cheap for a New Brunswicker who never got the chance to have a family doctor while living in Quebec. While living here, I never saw a doctor, I never went to the hospital. I am basically never sick, at the exception of seasonable normal flue that I treat myself. I absolutely love smoked mussels in can. I taught about it a couple of times, and I came to the conclusion that the reason why I have this really good health is because of all of those smoked mussels I had eaten in my life. Hummm.. Delicious... I have to take a pic of smoked mussels one day to show some to everyone.

I received today a federal tax credit of close to 100$. That’s good. I kind of need it at this time. Despite the fact that I have an extra 1 300$ to pay in taxes, I will still benefit from the federal and provincial taxes credit. I should received something like close to 500$ or so in total from those credits. In final, considering the tax credit I received today and the upcoming ones, it’s about 700$ that I will need to take from my pocket to pay my 2010 taxes. Not so bad. I didn’t earn that much of a salary in 2010. But still, it had exceeded the 40k.

My overtime at work is going well. My Sunday shift was not confirm at my weekend job, so I might just go at my week job place and do extra hours. Whatever can be done. Seem like there will be overtime for at least a couple of days. It’s very hard because I am generally easy and prefer to stay at home sleep late in my bed but hey, I have that 1 300$ contribution for my taxes that is waiting and also my project to pay off some debt. Nothing really easy, but nothing too difficult either. It’s always somewhere in the in between. Remember? 

Good night. ;)

Welcome again, Sprott Physical Silver Trust UTS (PHS.U)!

The transfer of my RRSP money from TD Canada Trust to TD Waterhouse had been completed. I decided to invest the money in a super power grow investment. I think the Sprott Physical Silver Trust UTS (PHS.U) is the perfect choice. I buy some units at 17.80$. So welcome again, fabulous Sprott Physical Silver Trust UTS (PHS.U)!

My overall portfolio is jumping close to the 160 000$. My net worth is probably at 80 000$, if not exceeding it. I am currently working extra hours to pay off some debt. Will see how it goes. So far so good,  no back pain. My net worth should be increasing soon of a couple of thousands, I hope.

Welcome Chatr Wireless services!

As always, writing on my blog yesterday had been extremely releasing. It’s very difficult to get things done properly while living in Montreal. I pray to be able to leave in a near future. While being in New Brunswick, I seek for work there. Fredericton offer good opportunities but it’s not exactly from where I am coming from. Anyhow, I began job seeking in the middle of February of this year while I was at home (remember the fish pictures? lol...). I am still searching, but I got quite busy since I return here in Montreal. Real seriously busy. Seem like I am running all around the place at the same time.

On Friday, I visit my usual accountable place to get my 2010 tax paper ready. I was happy to be done with it. Well, I am not exactly done as my tax declaration will be ready in about 2 weeks or so but coming from my part, I am done with it.

Do you remember Derek Foster newsletter, the one where he spoke about cell phone? Derek Foster doesn’t have a cell phone, but since last Friday, I got mine! Isn’t funny that taught about Derek Foster? Well, I guess I am a real fan! I got my cell phone activated after visiting my accountant office on Friday. I don’t have a home land-line and I had a pager since 2004 or 2005 now. A pager is a voicemail without the voice service. People can leave a voice message and when they do, the pager beep. But that’s about all. Whenever someone leave me a message, the pager beep. It work well, but there’s no way to figure out who’s calling without having to run to a pay phone.

After 5 years, I had enough. But I was trying to save money this way. Before, I found cell phone services very expensive. But Chatr Wireless is making things easier, not to talk about other unlimited wireless services offer by Public Mobile and Wind. In the Toronto area, Winds offer an unlimited data for Internet stick. I call Wind to see if the service was available for Montreal. At this time, Wind is only in Toronto. According to the Globe and Mail, it seem like Wind could be purchased by Public Mobile in a close future. It could be interesting for users. Public Mobile is available in Montreal.

I got that cute little Nokia 2220 cell phone that you see here in the picture for 50$+ taxes. It’s a basic cell phone, but I wasn’t looking for something more as I have an iPod and I can connect to Wireless on it. I don’t need a cell phone that can connect to the Wi-Fi or any fancy features. So that Nokia 2220 was perfect for me.

I got enrolled to Chatr unlimited service at 35$. It’s included unlimited call services for my local zone and everywhere in Canada. This is very good for me as I can call my family in New Brunswick and also my brother who lives in Ottawa whenever I want. So far, I did several calls using the Nokia 2220 cell phone and it seems to be working perfectly well. People I call can hear me clearly and I can hear them really clearly too. I can even but the call on speaker phone.

Chatr Wireless is very good because it’s a company own by Rogers Communications. Chatr Wireless uses the Rogers network which is reliable.

I had been trying to get my pager number import to my cell phone, but it hasn’t work so far. I will try to get this resolve tomorrow. I really got enough of my pager. I got 2 number on my pager and it was costing me something like more than 200$ per year. And to the 200$, you need to add on the cost for long distance calling cards. Having this cell phone will make things much easier for me and it will also facilitate my job search. If my 514 pager number cannot be import, I will keep my pager for another month and after, I will get rid of it. Strangely, I kept my 819 number I had when I was in Ottawa but no one call me on it since a long time now so that one can be cancel.

I got call today on my pager and I was able to listen to the message on my cell phone... lol... It was a call offering overtime at my daytime job. I got to refuse since I was working at my usual weekend job. But I plan to do overtime this week. It’s going to be hard. I just got time to do some laundry tonight after work. Yesterday evening I took it off and I went for a long walk. I walk everyday to go to work but it’s seem like it’s not enough because when I work for a long period of time, I am getting horrible back pain. So knowing what is coming up, I spent my Saturday night walking on St Laurent Boulevard one way to the other.

This overtime is my chance to pay off some heavy debt of mine. If I could pay a good 1 500$ on my debt this month – or more, that could be very great. My goal is to pay off the 10 000$ credit line I have at more than 7%. But that’s a long term goal, unless overtime is being offer for the next couple of weeks. Good night and wish me good luck. I will need it. It’s going to be a heavy working week. I hope I won't get any back pain.

Getting rid of TD Waterhouse ASAP

Earlier this week – before my shift got change – I manage to take care of my RRSP portfolio. I didn’t have too much time so far to pay attention to what I hold inside my RRSP. I want to transfer the money I hold at Manulife inside my RRSP broker account so I can get more for my money. That’s the most major part behind the project. However, I began my RRSP portfolio management by selling the mutual funds hold at TD Canada Trust. I had a bit more than 1 100$ that I was holding in the 9 best mutual funds of TD Canada Trust: TD Canadian Bond, TD Monthly Income, TD Emerging Markets, TD Energy, TD Precious Metals, TD Latin American Growth, TD Entertainment and Communications, TD Dividend Growth and TD U.S. Mid-Cap Growth.

All of the following had management fees around 2%, if not sometime exceeding the 2%. And that being for all of the 9 funds. A reader once wrote that having 100$ or so invested in all of those funds was not that of a good idea because of the management fees. At the time, I didn’t care too much about RRSP section of my portfolio, but now, it’s time for a major transformation. I had been able to do well with my non registered portfolio. I can do the same with my RRSP. Currently, my RRSP portfolio worth around 40 000$. It’s quite some money and my money deserved better than just mutual funds and segregated funds of Manuvie. Regarding my segregated funds, I don’t know yet if they can be sell because they are more like insurance mutual funds kind of. It’s something I need to look into. I will probably leave what I have at the CIBC at the CIBC. But when it comes to the investment hold at the RBC, I would be interested in doing something better with the thousands of dollars.

Part of my RRSP portfolio is hold inside my broker account. I had been able to generate a profit of more than 3 000$ on an initial investment of 19 000$ (around). My investment in Sprott Canadian Equity Fund, Claymore Gold Bullion ETF (CGL), EnCana Corporation (ECA) and Emera Incorporated (EMA) had been quite successful. I am happy with those gains. I may be able to generate a couple of thousands of dollars out of the 21 000$ left. That’s what I am looking for. Now that I am mostly schedule during the night shift, I will have all the time in the world to search for my options.

This being said, I began my RRSP management by selling the mutual funds hold at TD Canada Trust. I call on a day that the TMX was gaining points. And I call before 4pm. That’s really important to call on a good day (where the TMX marks points) and to call before the end of the trading day. Basically how it work when dealing with the sale of mutual funds, you never really know what will be the value of the sale. But if you do it on a good trading day and call before 4pm, your almost sure that you’ll be making a profit. Another trick being to take a look at the value of the major holdings of the mutual funds but personally, I never proceed that way. I go with the big scheme. The TMX is gaining points and the situation seem to remain stable until, let’s say 3:30pm? Than, I call at 3:30pm or around. And voila, that’s how to make big bucks out of mutual funds. Seem to be simple? Well, with the French representative of TD Canada Trust I had to deal with, it wasn’t that simple.

When I call, I explain to the mutual funds representative of TD that I wanted to sell my RRSP mutual funds to get the cash and get it transfer into my RRSP account at TD Waterhouse. A real basic simple request. I want the cash, and keep it inside the RRSP please. But the representative argues about my order.

The mutual funds representative said he could sell the mutual funds, but wanted to reinvest the money inside one of those stupid money market funds. And it’s not what I wanted. I own a RRSP banking account at TD. What I wanted is the money generate from the sell to be deposit inside my RRSP banking account and when the money would had appeared in the account, I would had go at the TD Waterhouse branch located at the Eaton Centre to complete the form for my internal transfer. I had did that before for a GIC, so I knew how the whole thing was working. But the TD Canada Trust representative didn’t want to hear anything. He was a real dumb French Quebecker and didn’t want to obey me. He never explained to me why the money was going to get reinvested inside a money market fund. I didn’t want of a money market fund, I wanted the money to be deposit in cash inside my RRSP banking account. I hold more than 140k at TD, I want things to be done my way. I don’t want to argue with anyone, especially some dumb Quebeckers.

The transaction wasn’t performed the way I wanted and the representative was really rude. Later on during the day, I call TD Canada Trust once again to find out more. I ask one more time to the second person I spoke too, another stupid French representative – why the money had been transferred inside a money market fund when I simply wanted the money inside my RRSP banking account. He told me that the previous agent had done his job, that it was the most reasonable way to proceed because it was going to make it faster for the transfer. Like wow, how come the fist rep did not told me that? But most of all, it’s not what me, as a customer, I had requested.

I am tired of those disrespectful Quebeckers who are not willing to respect my orders. And the price to pay for that is huge because whenever it’s possible, I am going to transfer everything I have at TD Waterhouse at some other place. Why should I continue paying 9.99$ per trade with TD Waterhouse in those conditions while I can pay only 4.99$ in commission fee with CIBC? Explain to me. Please.

Ok, you’ll say to yourself, this is a problem with TD Canada Trust, not TD Waterhouse. Well wait, you didn’t hear about the whole story. I am not done yet.

As promise by TD, money was quickly transferred into the money market fund inside my RRSP. Perfect. In the morning just before hitting to work, I visited the TD Waterhouse office located at the Eaton Centre and just like before, I received a very bad service. Most of the staff working at the TD Waterhouse Eaton Centre location barely knows what they are doing. Most of them never invested through TD Waterhouse, they were not TD Waterhouse users before being employed by TD Waterhouse. I can easily tell that because it shows on their way they handle customer requests. I can only talk about my own experience of course, but when I open my account at TD Waterhouse at the Eaton Centre 3 years ago, I fill out the papers work and nothing – absolutely nothing – had been giving to me as information. I simply got some brochure through the mail and a letter requesting 2 pieces of ID. Which was really strange because the IDs had been giving at the Eaton Centre when I first show up to open my broker account. What did the rep had done with my Ids at the Eaton Centre, I don’t have a single clue. But for sure, those poor Quebeckers don’t know how to work their ass.

I got another problem with TD Waterhouse when I open my margin account – always at the Eaton Centre. Nothing of the transformation had been explained to me and I had to deal with a bunch of complications all by myself: DRIP annulations that needed to be register again, dividend I was receiving that were not appearing in my new margin account, commission fees up to 29$ even while I qualified for 9.99$, etc... Switching from a cash broker account to a margin account had been a pain at TD Waterhouse. I had to spend hours over the phone with TD Waterhouse. Basically, since the early beginning, I got big problems with TD Waterhouse because of their incompetent Quebec staff members.

And the problems persist on date of today. Following the reception of the money market fund in my RRSP at TD Canada Trust, I pass by TD Waterhouse – Eaton Centre to get the money transfer into my RRSP broker account. I knew how that part work because I had done it before. I needed a form. But strangely, the TD Waterhouse representative I spoke to at the Eaton Centre did not know what I was talking about. She gave me a number and requested me to call. It was the 514 TD Waterhouse number. I call TD Waterhouse, explaining the situation. I got a confirmation of what I already knew, I needed to complete a form in order to get the transfer completed. So I went back to the same TD Waterhouse representative at the Eaton Centre, and I explain to her what she needed to do. The poor woman was a complete idiot. As an excuse, she told she was working there since a month and a half only. Very not impressive. She had to call TD Waterhouse to know what to do. I finally got the form completed but it took me an hour. Last time, for the GIC transfer, it only took me 10 minutes, at most.

TD Presidents and Vice-Presidents are receiving hundreds of thousands of dollars to manage their business and here is the result. Horrible customer service. I don’t trust TD anymore as a bank and as a broker and I plan to FLUSH them as soon as I can. I am going to switch of broker to make them understand that I am the boss and this is the price to pay for not obeying me and being disrespectful. Quebeckers, BACK OFF.

Happy portfolio time, at least

The week had been crazy. I am just drain out. It’s seem like it’s when I am the most exhausted that my portfolio is running at its best... I got a shift change for a week and it’s hard for me to adjust. So in result, I arrived late. But it’s not my fault. I mean I accept the shift change to help at work, so arriving a couple of minutes late shouldn’t be that much of a problem knowing I am almost always on time otherwise... Right? lol...

Funny thing is that it’s seem like it’s when I am at the most exhausted that overtime become available... This mean that for now, I can do extra hours at work and do what I had planned to do a long time ago: pay off some debt. But this time it’s for real. My portfolio is great just the way it is. I don’t have any more investment projects for now. I am done. But the results had been good and I enjoy my latest trades.

I didn’t post about this one, but a couple of days ago, I had invested in 200 stocks of Premium Brands Holdings Corporation (PBH) at 17.39$ in order to benefit from their latest dividend. My margin is over load but I plan to sell SII, DH and the latest 200 of PBH whenever I can make a profit from the sale and than, I have to say, I think I will be done with new acquisitions for a little while. I know I can make a profit out of PBH and the other. I am not in a rush to sell. I had been running for dividend but placing purchasing order before a dividend closing business date just to get more in dividend is not something I plan to do on a regular business. The latest investments I made were purely emotional, just as for everything else. My emotions make me buy more, but they never make me sell (or barely). This meaning I am able to control myself in order to not to sell and not lose money.

But lately, what happen is that I wanted more and with the margin account of mine, my cash flow is enormous. I don’t regret any of my investment. But I am at a point where the exhaustion is telling me to give it a break. I won’t sell my investments – if not just a few of them. My portfolio will remain. Just that now, it’s the exhaustion who’s telling me what to do.

The latest events had been quite too much for me to handle all at a time. And it’s not true I can handle it all. I hold many companies in my portfolio. Part of the exhaustion is coming to that. The other part would come from my personal life and the other part from my everyday life. Will the exhaustion ever end? I think it’s all in the head. I need to keep in control. I know somewhere I can control my debt situation and I can control my investments. It’s just a matter of schedule. It doesn’t take too much to bother me. Just a shift change and boom, my world is upside down. It’s just I had plan to get the night shift, which I had for 2 days. During those 2 days, I wrote on my blog, follow my investment, wrote my review of Dewitt & Maria movie (did you read it?) and done a lot of things I wanted to do for a long time. But now, I am back to the day shift and I wasn’t mentally prepared for that and look at me now. I am all f up. My night shift should come back again next week. I hope.

Movie review of the romantic comedy Dewitt & Maria

Check out my latest HubPages: a review of movie Dewitt & Maria.

Fabulous trading secrets revealed on how to trade efficiently the Sprott Physical Silver Trust UTS (PHS.U)

I wrote about what will follow before, but a reader email make me realize that my finding is huge and I need to refocus more on how to successfully trade Sprott Physical Silver Trust UTS (PHS.U). You’ll find this trading secret no place else on the Web if not right here on the Dividend Girl blog!

Why the Sprott Physical Silver Trust UTS (PHS.U)?

I had been holding Sprott Inc. (SII) in my portfolio since 2008. In the last quarter of 2010, Sprott announced the launch of 2 new investment products: the Sprott Physical Silver Trust UTS and the Sprott Physical Gold Trust UTS. At first, I didn’t pay too much attention at the time on those new Sprott products. Following their initial public offering, Sprott Silver and Sprott Gold got launched in the market. I was already holding gold in my portfolio with the Claymore Gold Bullion ETF (CGL), so I wasn’t much interested in the Sprott Gold. Sprott Gold results were good, but nothing of more interest. But things were completely different for the Sprott Physical Silver Trust UTS (PHS.U). In November 2010, I invest in my first units of Sprott Physical Silver Trust UTS (PHS.U). I wanted to hold this investment but selling was too tempting because money was easily made through the Sprott Physical Silver Trust UTS (PHS.U).

Since November 2010, I sell and buy some Sprott Physical Silver Trust UTS (PHS.U) on a regular basis. Sprott Physical Silver Trust UTS (PHS.U) quickly became one of my favourite. PHS.U started its trading life at 10$ per unit. Just 5 months following its launch, Sprott Physical Silver Trust UTS (PHS.U) almost double in value. PHS.U closed last Friday session at 17.40$!

I never been a heavy trader, but the Sprott Physical Silver Trust UTS (PHS.U) is perfect for quick and easy money gain by overnights buy-and-sell scheme. Perfect yes, but even while trading on the TMX, Sprott Physical Silver Trust UTS (PHS.U) is in US dollars. I know, it’s strange. I never understood why the Sprott Physical Silver Trust UTS (PHS.U) is being trade in US dollars. I stop trying to understand a long time ago. This being said, if you simply don’t understand what I mean, try to place a purchase order for PHS.U without completing the sell. In your broker account, place a purchase order for let say 100 units, ticket symbol: PHS.U, market: Canadian, market trade for the same day. Click continue and stop right there. If you are with TD Waterhouse, you’ll get the following message: “The currency of your account does not match the currency of the market. Your trade will be converted to the currency of your account.” The following mean that you are about to trade in US dollars in the Canadian stock market! The currency problem won’t really affect you at the time of the purchase. But it will at the time of the selling of your Sprott Physical Silver Trust UTS (PHS.U) units. I previously wrote about one specific sell of PHS.U that didn’t go well. My 300$ profit turn into something like a 30$ profit. Why? Well, at the time I place my sell, the US dollars may had worth more than usual. And it had a direct effect on the profit made. You can read more about my trading flop right here.

I recently discover how to avoid such “tragedy” to happen again. The solution proposed by TD Waterhouse being to trade Sprott Physical Silver Trust UTS (PHS.U) inside RRSP or TFSA. The account you trade Sprott Physical Silver Trust UTS (PHS.U) need to be a register one. Here’s the trading secret, step by step: 1. Purchase some PHS.U units inside a RRSP or TFSA broker account. 2. Sell your PHS.U units hold inside the RRSP or TFSA as soon as an appealing profit can be made. 3. As soon the sell order is completed, call your broker and request a wash trade.

What is a wash trade?

A wash trade is something that can be practice, but only inside a RRSP or TFSA broker account. A wash trade will erase the fees related to the currency exchange. Which mean that a 300$ profit will remain at 300$! I didn’t practice a wash trade myself so far as I decided not to sell the Sprott Physical Silver Trust UTS (PHS.U) units I hold inside my TFSA. But I might give it a try soon. The wash trade is interesting for a TFSA. Imagine: the profit made inside a TFSA, even once being withdraw from the TFSA are free of tax and on top on that, all amount withdraw from a TFSA can be deposit following one year after the withdraw is made... When it come to a RRSP, no withdraw can be made of course, if not, you’ll face penalties. Despite being a register account, the TFSA is flexible. If being use properly, the TFSA can be a mine of... silver.

I hope you’ll appreciate this tip but before applying it, please consult your broker. The information shares in this post need to be verified. I am not a professional.