Me on Monday

I wrote the following post this past Monday, but I never took time to complete it, so I am just posting now. Enjoy!

My non-registered portfolio is at a good $118 862.84. Things are slowly getting better on the stock market. I was quite happy with the numbers of today. Very soon, some stocks of mine will be transfer over my TFSA, so my non-registered won't be at the value that I am use too. However, this is a very small inconvenience to be able to earn more than $400 free of tax.

We don't get tax that much on dividend income here in Canada. However, with an income of 50k last year, I had paid extra in taxes. Any ways to save on taxes are welcome, including the TFSA.

Monday is always always the hardest day of the week. But today, it was my day. Should I really write about this or not... Too late, here it goes.

The following might be a lesson to all retail investors out there: don't trade and don't perform any kind of operations while being busy at other things. I was looking under my transfer to see how much  I own on my credit line. I withdraw money from my TD credit line occasionally. And with the summer in, I withdraw more than usual. So I was at work thinking that I may haven't transferred money from my margin account to my credit line... So I quickly gave it a check online, but I look too quickly into it. What I taught that was my credit line was actually my RRSP banking account. I taught I was paying my credit line but I was in fact transferring money in my RRSP account... I notice at the step 3... Do I ever make mistakes like that? No, but this time I did.

So I immediately gave TD Waterhouse a call. While waiting and waiting online, I ran to the TD Waterhouse office and someone I knew was there and available and remember my name (I don't know if its a good or bad thing but hey)... And it was fixed in a matter of a few minutes.

That was my Monday funny story.

Oh lala, it was a short one. I took advantage of the situation and I requested the transfer of the money sleeping in the RRSP banking account. So I will have a $500 to play with soon and maybe I will have a bit more money to invest in August. Because for July, forget about it.

Me + Summer Sun + Beer = Fresh Hot Claim

I had a very good times in the past couple days in Montreal. After the Francopholies came the International Jazz Festival. Night after night after night... free amazing outdoor shows. So that's why you haven't heard too much of me. And I began a new position at work with a new schedule. I have to get up one hour earlier and I still have a bit of problem with that, going to work in taxi a few times. Its going well however. I am now back in front of my laptop, checking on my portfolio and a few other things.

I have to admit, I haven't check on my stock these past couple of days, but I have checked on the stock market. The market continue its strange behavior. The no direction thing is still going on.

My non-registered portfolio is at $117 619.78, -3.42%. I have left $8 982.15 on my margin. And I just begin to understand why the value of what is left as margin is so low. Its partly because Chorus Aviation Inc. (CHR.B), Data Group Inc. (DGI), Sprott Inc. (SII) have no longer any margin loan value. However, all combine together, these 3 stocks bring in $426.96 in annual dividend income. 

Since those stocks have no loan value and that I still have contribution room left over in my TFSA, its now time to take advantage of the situation and have those stocks transfer in my TFSA so the dividend earn can be tax free. $426.96 is almost a week of salary after taxes.

Once I completed this transaction, my margin loan value will be exactly the same and on top of it, a good amount of income will become tax free. Let say I taking a profit of a situation on which I should only lose on.

I just hang up with a nice TD Waterhouse representative and I got all of my shares of CHR.B, DGI and SII transferred over my TFSA, a $4 313.17 contribution. I didn't want to sell those stocks so best thing to do is to transfer over the TFSA. There will be no capital gain to be pay on the transfer because all of those stocks are down... but at least, the dividend income will be tax free.

Now if you don't mind, I will now get ready to enjoy Montreal hot weather and became a fresh claim under the sun and between sunflowers.

I am leaving but we still have the celebrations over the 600 000 page views that is coming up soon over the weekend so keep reading.

Have a very happy and lazy July 1st weekend, investors

Something extraordinary happened just a few days ago... my blog had been viewed 600 000 times! Thanks for  reading and keep up going because there's some celebrations coming up!

I saw Feist at the Montreal Jazz Festival yesterday. It was really awesome. I love the Native beat in  her music and her voice is quite amazing too. She's from Nova Scotia. It enjoyed the show. The place was cracked of people and I was more in the back that in the front... Smelling the fresh smoked weed in the crowd.

Otherwise, another month is about to end. June hasn't been an easy month for investors. Dealing with an extra volatile stock market is not all fun. I invested in a few shares of CNR to take advantage of the down market. My overall dividend income for June will probably be off somewhere $600. My non-registered portfolio closed Friday session at $117 622.60, -3.41%. I am experiencing a lost of 4k. Not too bad knowing that just a few days ago, I went down to 114k... That was scary, but it didn't last long.

The fact that both gold and silver are trading down is not helping me in any way. My Barrick Gold (ABX) stocks are trading below $20. My First Majestic Silver (FR) is way below the $17 per stock... Etc. So those have a direct effect on the value of my portfolio. But I am confident I will be able to recover.

For my upcoming moves, I plan to transfer a few things inside my TFSA. Currently, with what I hold, my annual dividend income is of $6 626,67. Its quite a few pennies, and if I can earn a few bucks, tax free, why not? I plan to transfer Firm Capital Mortgage Investment Corporation (FC) in my TFSA account this weekend since FC is down in value. That way, my $40 dividend earn with FC will be free of tax or tax free, if you prefer.

I am trying to gracefully get back on the 7k dividend income. When I say gracefully, I men the gracious way, I mean by investing in high quality stocks. I am only missing a $373.33...

Another thing I am looking into is BCE Inc. (BCE). I never been into this stock, but now that the deal with Astral Media is finally kicking in, it could be interesting to add on some BCE shares in my portfolio. At 5.4% dividend yield, the deal is sweet. Currently, BCE is trading at $43 per share, which is below its $48 highest value of the year and highest value ever. A low BCE won't very stay in for long - at least its what I believe and it could be exciting to add in a few shares of BCE in.

Welcome again in my non-registered, Canadian National Railway Co (CNR)!

Its quite hard to understand why, but yesterday, the stock market reached out the 12 000 points. I was ready for more loses but hey, I won't complaint. Knowing that the stock market was up up up, I took advantage of the situation.

Now, on a more serious note, this week is paycheck week so I place my move in advance, I bought a few more stocks of Canadian National Railway Co (CNR) today. The investment made is less than $600. My non-registered portfolio closed yesterday session at $118 086.44

The Canadian stock market, the darling TSX, is down down down

Happy St-Jean Baptiste even if I am not a Quebecker.

!!! bip bip bip beeeeep.

I just had time to arrive home and after what, it started raining. In this evening of the St-Jean Baptiste, I quietly stayed home and I am also quietly looking at what's going on with the stock market. 

Devastation is a good word that match the situation at this time. And there's also a great deal of devastation going on in Calgary these days. Its quite unreal to see downtown Calgary completely flood. I taught of what would happen to me if something like that happened in Montreal. When something like that happen so quickly, you get trap in the event, no way to escape, you get stuck and have to deal with it. Its so unreal!!!

Personally, I haven't invested in furniture and I don't really have anything expensive at home, I don't even have a TV. I guess I would have time to save my laptop, all of my credit cards, my passport, and my financial papers, a few jewelries, in case a disaster happen. I saw World War Z this past weekend and just like one of the main character, I guess I could get stuck in a situation where I don't have any money or just be without my wallet. Anyway, those kind of real and unreal events kind of make you think twice of how fragile we are as individual in this world. It make me think that I don't have much in food supply. I don't have any bottles of water. I don't have a flashlight, no small emergency kit what so ever.

So yeah, you get it, if the end of the world have to happen soon, it will soon be my end too! I wouldn't last long but I guess I would go get my brother in Ottawa and hit New Brunswick where hopefully, our change of surviving would be better. In the immediate time, I would go check on my brother and make sure he's safe before anything else. I would take the plane, the bus or the train. The blood of my blood is more precious than anything else. And now, imagine me as a mommy. It wouldn't even be funny.

I heard from my brother tonight and he seem to be just fine.

(You really have to go see World War Z, the movie is CRAZY fun!!!)

That's for the surviving part.

As for the investment part, my non-registered portfolio close at $115 161.65. The TSX closed it session again at less than 12 000 points. And the worst part is, our beautiful index have lost 158.80 points today alone!! At 11 836.86 points, I wonder if we have reach the bottom yet or... if this is the beginning of the end. 

When the stock market crash, it is always hard because there's no way to figure out if the bottom had been reached. The bottom of the bottom. See what I mean?

I have built my portfolio in the kind of same devastation back in 2008.

Right before the stock crash of 2008, I had invested in Sprott inc. (SII) stocks at $10 per unit. And not too long after, the stock market crash. I saw it as an opportunity to buy at a cheap price. I invested massively in all kind of different stocks, ENF, FTS, MX etc. I invested as much as I could, whenever I had a chance. That's why I have a margin that worth 63k. 

Dealing with stock crash is not fun. Its stressful and it make me feel sick. However, it is not time to desperate. This is an opportunity to buy. And believe it or not, sooner or later, the stock market will go up again. It always go like that. Its hard to believe that the market will ever gain points again, but it always goes. And I had came to the conclusion that stock crash like the one we are in right now result from politicians, from the FBI or whatever else thing like that so the big investors can invest more of their dirty money in the market. I thing this one had been artificially created, especially after reading about what's going on with China, all the cash injection etc. In other words, we have been manipulated. So don't sell anything under panic.

You think I am wrong? Well, think again. Do you remember the silver crash we had a little while back? Eric Sprott said that someone was behind it. Someone was playing with silver and it was hurting the market. I think we are under the same kind of negative influence right now. Job had been created like crazy in Canada, US is doing better, we are not hearing anything about the Euro these days so as long nothing is being said, no one will panic. The only answer is the China influenza. Crazy communist country can finish to hell.

But if you want a more clean answer on what's going on, you must read this post of Susan Brunner. Its not the FBI, its not Stephen Harper, its not me, its not China. Its a Secular Bear Market. This is why the market is all over the place. Do you sometime read analyst saying that for example, today, the stock market close with no clear direction or something like it? I read that ALL the time!!! So next time you read something related to "no direction", well think of me and the Secular Bear Market. I would like to know what Jean-François Tardif think about this. We don't hear a lot of Jean-François Tardif these days. 

China won't finish in hell now. But maybe I will do.

But before the real party start, I have a couple decades still available of trading life and we will play it on while we still can.

I have build the biggest part of my portfolio on high quality stock and many times, I bought when the markets were down.

The best way to move forward while facing lost in a portfolio is to keep going. This is the perfect time to invest. It doesn't really matter how much to have available. It can be a $500, a $1 000. What matter at this point is to take advantage of the down market to your own personal benefit.

Its like going shopping at a luxury jewelry store and the diamonds you ever wanted are 30% off.

I hold a lot of diamonds in my portfolio. Currently, I have my eyes on TRP, CU and CNR and even maybe THI. I had invested a couple of times in CNR when the market were down and each time, its been quite $$$ rewarding. So now time to get rich on the down market that is acting so retarded.

Are you a margin account expert? Tips and tricks on how to deal with a margin account situation

On regular market days, my non-registered portfolio is usually around the 120k mark value. But for that, I need a normal stock market condition. I need the usual of what the stock market is usually around, somewhere between the 12 300 points to 12 600 points.

This past Friday, the TSX close its session at less than 12 000 points. That's no good news for retail investors who are fat on the margin!! Just like who? Just like me!

Here's the situation:

My non-registered portfolio is at: $116 431.23, -3.99% 

I had used $53 245.01 of my margin money

I have left available $8 758.63 in margin $$$

The portion of that is left available of my margin account is directly link to the value of the non-registered portfolio. Which mean that if the value of my non-registered portfolio decreased, the amount that is left on my margin decreased too...

This is exactly the reason why it's not the best thing of the world to invest using margin cash.

I guess it was about 2 years ago, when I open my margin account, and BANG!!!!, automatically, I was giving a margin value of $50 000. Imagine: I had at my disposal $50 000 that I could used on whatever I wanted!! Exciting? Ohh yeahhh. And now, my margin portfolio worth more than 60k. My portfolio worth a lot, so in result, I had been giving a 62k worth in margin. However, while playing with a margin account, there's one thing you need to keep in mind: your margin value depend of the value of your portfolio and your portfolio value depend on the appreciation of the stock market. And that's the tricky part. The stock market being what it is, EXTREMELY volatile and unpredictable, it is very risky to invest on a margin account. I knew that from the start, but I wanted to get a margin account more than anything else. Once you begin to experiencing the stock market, you'll never get enough of it. Its toxic, addictive and sexy... buy you knew that right? 

At first, the plan was to partly used the margin money to pay off some debt and leave a big amount on it to protect myself from any horrific situation. I did that, but among the way, I ALSO used my margin to invest. And this is how I had now used over $53 000 of my margin value. 

I certainly know how important it is to follow my stock value because I have a margin account, but I won't lie, especially these days, I am not following my stocks, but I do check my broker account almost every day (but sometime not everyday). This being said, I know the value of what I hold. Most of my holders in my non-registered portfolio are high quality stocks:

K-Bro Linen Inc. (KBL)

Westshore Terminals Invest Corp (WTE)

WesternOne Inc. (WEQ)

TransCanada Corp (TRP)

Canadian National Railway Co (CNR)

Firm Capital Mortgage Investment Corporation (FC)

Enbridge Inc. (ENB)

Agrium Inc. (AGU)

Canadian Utilities Limited (CU)

Bank of Nova Scotia (BNS)

Methanex Corporation (MX)

Fortis Inc. (FTS)

Pembina Pipeline Corporation (PPL)

Enbridge Income Fund Holdings Inc. (ENF)

Corby Distilleries Limited (CDL.A)

Davis + Henderson Corporation (DH)

Premium Brands Holdings Corporation (PBH)

iShares S&P/TSX Capped REIT Index (XRE)

Exchange Income Corporation (EIF)

Student Transportation (STB)

TMX Group Inc. (X)

Emera Incorporated (EMA)

Black Diamond Group (BDI)

Cineplex Inc. (CGX)

Rogers Sugar Inc. (RSI)

Those are the stocks that help me surviving on my margin. They are excellent stocks that everyone should hold in their portfolio.

This being said, even excellent quality stocks can decreased in value. That's why alternative solutions must be available. Holding high quality stocks alone is just not the all of it. I have $25 000 available on different credit lines. If see that the stock market keep deteriorating, I will transfer some funds over my margin account. At TD alone, I have 14k available on two credit lines. And I also have a 11k on a credit card at less than 10%. When I feel insecure, before going to work in the early morning, I transfer a 5k over my margin. Once out of work, if I see that my non-registered portfolio is at a regular value (usually around 120k), I transfer back the 5k over the line of credit. Its important to proceed to the transfer before midnight because if not, you'll pay interest on the 5k or whatever else amount. I proceed with those types of transfer on a regular basis.

What I like is to have between $13 000-15 000 left on my margin account. But with the current condition of the stock market, my margin value is only at 8k. I am totally aware of how risky this is.

We talked about this before in previous post. If the stock market keep going down, another option would be to transfer the stocks hold in my TFSA over my non-registered portfolio. Lately, I have invested most of my new stocks over my TFSA. Transferring my TFSA over my non-registered could add maybe 1k in value to my non-registered account. It wouldn't be much profitable, but in case of emergency its an option.

At this time, I am not under the impression that I am dealing with a real danger, but I have to be careful.

Lately, I have used over $1 500 on one of my credit line to pay my 2012 taxes. I haven't received any of my refunds yet (around $500) and I did my taxes about 2 weeks ago. Its taking way toooo long. With my upcoming paycheck, I will have around $500 left available for payment of the credit line... but nothing left to go on my margin account. So I definitively need to be careful. From now on, I promise I will try to be a good Dividend Girl and I won't trade on margin anymore. 

I will be away for about two weeks sometime in July. During that time, I may left a 5k from my credit line into my margin just to keep my peace of mind during my vacations because Internet could be more or less available during that period of time. 

Really, with a margin account, there's no magic trick. Holding a margin can get tricky and complicated, but there's always a way out or almost.

The Dividend Girl with Zachary Richard and Roch Voisine

For the past couple days, you haven't heard much of me. I went to free outdoor shows at the Francopholies. It was absolutely amazing! It's always amazing year after year. 

And during that time, the buddy from $25 000 Dividends wrote me an email saying that he had invested in CU (nice good pick!) and that the stock market was crashing. I only see now what he meant by that... the TSX closed Friday sessions at less than 12 000 points. Being below the 12k mark is very very bad. Its bad for my margin and portfolio value. We'll talked about this in another post.

I had been to busy to properly follow the stock market. There're a lot of changes happening right now at work. There's too many people leaving and its provoking many changes and I am unfortunately taking the hit for what's going on. Its absolutely crazy and I wasn't expecting so much "volatility" at that work place when I first signed in. Anyway, I will be now begin my day earlier in the morning and I will be able to finish the day work earlier. Its the only positive thing about it. For the rest, I am really considered as a f hole. I wasn't expecting much more from Quebeckers anyway. You know how they are as much as I do. 

This year, the Francopholies was celebrating its 25 year. I was able to met Zachary Richard for the second time. I was sooo exciting, I was breathless and my hands were shacking... Hot Cajun always have a special effect on me and Zachary Richard has an effect on me!! Check out my video:

I also wait for the incredible Roch Voisine after his Saturday performance at the Francopholies. My video is not upload yet, but you'll see how cute it is when I posted it. I come from the same region in New Brunswick as Roch Voisine. Not that I know him personally, but I had followed his career and he always been a great inspiration for me in regards to where he's coming from and his life achievements. I also saw his performance last year in Ottawa at the 1st of July celebrations. Hearing his hit song Hélène is always amazing! This year, Roch Voisine is celebrating his 25th year in the music industry. Here's my video!!!:

Knowing, as a fan, Roch Voisine, I know he's particularly proud of his album Americana. So before going to his show, I bought the album and after the show, I wait for him outside. There was quite some people but I was right outside in front of the open door. There was only one door from where he could possibly go out, and it was that one. So I figured that if he would saw his album Americana up in the air, I knew that my chances that he will come to me were quite good. And he did! I was extremely lucky because from the time that Roch Voisine came out of the door and get in his car, less than 2 minutes passed by....

It was raining during his show so I had quite some problem to make some videos with my iPod, but I did a few ones. Luckily, after the show, it wasn't raining so I was holding Roch Voisine album Americana and a black permanent marker in my left hand and in my right hand, I was holding my iPod. so I was album to get him while he was signing my album.... I wait for 45 minutes for his appearance. I was completely exhausted. It was raining during the biggest part of his show unfortunately, that didn't help. I also went to the Francopholies each evening after work... Which is always fun, but at a point, beer and getting early in the morning doesn't mix well together at a point. My lower back is hurting, I need a massage and my left foot is hurting.. Problem being, outside shows are nice but you have to be strong on your two feet and be willing to wait between 30-45 minutes before being able to see your idols... And you also need to be there between 30-45 minutes before the show, if not even one hour to be able to get on the front row.

So now you know what I had been up to the past couple days. While the stock market was crashing, I was partying... And the party is not dead over yet because next week, the Montreal Jazz Festival is hitting town!!! 

The stock market can crash, as long as I am not there watching and knowing.

Canadian Utilities Ltd. (CU) 2-for-1 split happen today!

There's no hot water in my building for now. I guess I was lucky because this morning, I had hot water and was able to get a hot, a very hot shower. And yes, I was alone in that shower.

Yesterday, it rain all day long and I cleaned my one and half apartment, I watched TV online, went outside in the rain for my grocery shopping and I did my lunch for the week. I basically spend a big time of the day in bed and the only thing missing was a cute kitty and/or a naked man and or men next to me. 

Sunday is always terrible because you know that the day after, it will be the same old thing. It just amused me to see staff leaving one after the other. It just such not a great job environment and I am really only there because I have bills to pay and that I am full of debt. Not to say that I am full of sh"t too.

;)

I am especially full of it now that my bank account is empty after paying $1 600 in income tax to Revenue Québec. I went straight to bed after work too and watched TV. I haven't even look at my stocks. But I just did now. I am at 118k+ and made a great deal of cash on my dividend. June will be a good month for my dividend income.

I am still trying to get my hands on an extra $250 per week. But its not easy. Like this weekend, my tax thing really exhausted me mentally and I have't done anything new to reach my goal. And I also cheat on my budget this past weekend. I spent about $80 at the Casino, lost it all and I also went for my hair coloration. I needed to spend money like I just didn't give a damn. God was watching my salvation madness while I was playing and playing again in those sl@l machines. And now good news is, I am done with the Casino. I am done for good.

On today, Canadian Utilities Ltd. (CU) split. It was a 2 for 1 split. And the dividend didn't double - it will be fix accordingly to the new number of shares, the dividend yield remains the same. Previously this year, Telus (T) came with a 2-for-1 split, it was cool, but my dividend didn't double.

Today, Montreal mayor got arrested by cops and I found it funny. I don't know why, but I wasn't surprised. Ottawa might come first in term of ganster vibes, but Montreal certainly come second.

Revenue Quebec gansters in style

Today was quite an exhausting day and tomorrow will be just worst. I took 2 hours during my lunch break to have my taxes finally done and completed. I will be able to recover the one hour extra tomorrow. But I won't be able to recover from all the money I have to pay in term of taxes for 2012.

If like me you live in Montreal and would like to find a very good professional place to have your taxes done, I more than strongly recommend Impôts Ici. I had all kind of papers (employment papers, self-employed declaration, tax paper for my small business and all kind of investment tax papers you can imagine of). At a bit more than $240, I find it quite a sweet deal. I even offer a $20 tip to the accountant, but she refused. It could be seem weird to tip an accountant, but I truly had the feeling of what all the work involved in doing my 2012 tax declaration. A real pain in the ass. I had the double status of employee and self-employed, and it was also complex because I lived in New Brunswick for about half the 2012 year... This is giving you an overall of the funky situation that is mine.

I had been a long time customer of Impôts Ici. I guess I had gone there for the past 5 to 6 years at the exception of last year because as you know, last year I was in New Brunswick.

For the tax of my very small business, I got a return of $70.

I got returned of $500 from the federal.

And....

I have to pay $1 600 to Revenue Quebec!!!!

Why is that?

Well, it doesn't look like it at first, but I had made more than 50k in 2012. Nice, but helllll, I need to pay quite a few dimes to Revenue Quebec. All this hard work to pay more in taxes, its totally disgusting, I agree. I was quite impressed by the 50k mark. Its a lot of money. I did quite well on the dividend income and interest and capital gain too, so it add up quickly. I had been on unemployment, but less than 2 months, and I had my self-employed, and dividend income with that.

As the years past by, my dividend income, interest, and capital gain grow, grow and grow. And at a point, I could very easily made 60-70k per year. At this point, I begin to be more conscious about how I invest affect my income. I would be very important to take fully advantage of the TFSA. I still have contribution room available in there and I am much more tempted to maximize the TFSA rather than the RRSP.

Yes, the RRSP will provide a tax break, but its not money I will be enjoying now or even in 5 years from now. That's why I didn't invest in my RRSP in a very long time. We might be getting a tax break in the immediate, but later on, tax will be apply on every dime. I stopped investing in the RRSP when I started realize that. I have an aunt who's quite have money of her own and she confirmed that fact. Susan Brunner came here once and declared I was right all the the taught. Its really important to understand that as soon as possible in your financial life.

I won't be enjoying an exotic trip to Banff or expensive hotel room this summer... that's for sure... I am just happy to have this upcoming pay on Friday. I will be able to clear off my tax payment without to much efforts. There's nothing I can do to fight back, my tax need to get paid or interest will be charged. We all face the same challenge.

It make me realize that if at a point I am really getting enough of my full-time job, I could get something else, even just part-time, and cash out the dividend, and just stop whenever I want and leave Quebec province.

Today was a day like that.

Money money and money

I am finally getting my taxes done tomorrow. I think I will have something like $500-$800 to pay extra on taxes, if not more... This is not going to be an happy time. My Friday paycheck will be of $1 100, so I will have enough to pay it all. Can I let it go without thinking more? Living in Quebec is a complete waste of time and money. I like living in Quebec just as much as this guy like to be a lawyer. For now, one of the reason behind the anger is the huge amount that is soon going to get outside of my pockets.

My non-registered portfolio closed at a tiny $117 484.26. Its not soo bad, but if the portfolio continue to go down, I will have to use my credit lines to inject money on my margin account. I have a 10k+ left in my margin, but that value goes lower each time my portfolio value go down... I monitor closely, but I am confident the market will rebound at some point, soon or if not, just later.  

I had applied for a few things, but no reply yet. I am not looking to get my hands on a fortune. At this time, if I could earned an extra $250 per week, it will be very good. 250 for 4 weeks make a thousand. Why is it so hard to earn a tiny amount of money?