tag:blogger.com,1999:blog-67386954942423640852024-03-19T06:06:40.974-07:00Earning JackA jack-of-all-trades and his quest for financial independence.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.comBlogger62125tag:blogger.com,1999:blog-6738695494242364085.post-50064937241327354422012-04-09T17:16:00.001-07:002012-04-09T17:19:35.472-07:00Tempis Fugit & Letting Sleeping Investments Lie<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJnppTCdTe9190C0hgjZnzdOf6I2H9w5YboA2TI30fTmUOhb90gWaFBtYjgPtXzE0-sc5DeY-j70x-wTl4m_txY2ZrHStRElYPcukBytGVAhUiMqjQfqPs1ZZxLutjw23whwUVAOSjUOcx/s1600/Tempus-Fugit.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJnppTCdTe9190C0hgjZnzdOf6I2H9w5YboA2TI30fTmUOhb90gWaFBtYjgPtXzE0-sc5DeY-j70x-wTl4m_txY2ZrHStRElYPcukBytGVAhUiMqjQfqPs1ZZxLutjw23whwUVAOSjUOcx/s320/Tempus-Fugit.jpg" width="319" /></a></div><br />
<b>Well, it's been a few months since I posted here! I promised a video, and here I haven't even put the darn thing up!</b><br />
<br />
To be honest, I've been really swamped with schooling (welding, which is going along quite nicely), and keeping up with the social groups I've joined in the last few months. So, lets just get on with one of my favorite topics: <i>Money</i>.<br />
<br />
Over the last few months, going to school, I haven't had any money to invest, and I have been hesitant to sell any of my investments as they have been both paying dividends, and rising in value. Don't fix what's not broken, right?<br />
<br />
So I come to my point of the day:<br />
<br />
If you are comfortable with your investments, or you can't think of a really good reason to sell them, then <b>Do Not Sell Them!</b><br />
<br />
I have made that mistake in the past, feeling so embarrassed that I didn't even mention it in this blog. I lost about $300 (a mere rounding error for some, but a good chuck of money for me!) when I sold low because I was SCARED.<br />
<br />
Unfortunately, as in life, the brave and the bold walk away with the prize.<br />
<br />
So the moral for today is:<br />
1. Research your investments thoroughly <br />
2. Follow a contentious plan<br />
3. Keep to the course!<br />
<br />
Do you have any topics you want me to tackle?<br />
Let me know by dropping a comment below!Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-70101089457792264392012-02-18T19:16:00.000-08:002012-02-18T19:16:48.477-08:00Back from the dead<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD-5J6CoUmmOuOtapUMZz9wpKs65xmAWztkebzdH3s6NWiDHb8rQMtaP3q00FJi-qfd9bLsT8R8KPl0EUtd0cqUzQsoJI6QrjDdn2zqdCq3I04ZkiTtsqWTENDht71mXaakRZiwCovwMqI/s1600/backdead.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD-5J6CoUmmOuOtapUMZz9wpKs65xmAWztkebzdH3s6NWiDHb8rQMtaP3q00FJi-qfd9bLsT8R8KPl0EUtd0cqUzQsoJI6QrjDdn2zqdCq3I04ZkiTtsqWTENDht71mXaakRZiwCovwMqI/s320/backdead.jpg" width="298" /></a></div><br />
It's been some time since I've posted.<br />
<br />
This is primarily due to the fact that I was in a <u><b>major motor vehicle accident</b></u>.<br />
<br />
My car was totaled, and I was moderately injured.<br />
I've been in physiotherapy to regain my full range of motion in my arms and neck for the last couple months. My job was so kind as to lay me off during this period (sarcasm), as they did not take my injury seriously.<br />
<br />
Out of all this, I am frankly happy to still be alive, and to have all of my body parts. I was told several times by several people that I was very lucky to have survived so unscathed, and that if the odds were a little different, I would have been decapitated by the hood of my car, as it sliced through my windshield like a hot knife through butter.<br />
<br />
It's a very strange feeling to have come so very close to death. And not a foreseeable death, like cancer or another relatively 'slow' disease, but in such a sudden, and dramatic fashion.<br />
<br />
Sometimes, late at night, I have nightmares about what would have happened, if my girlfriend, and my parents, were called to identify me, my head hanging to my body by a thread, my neck the equivalent of ground beef.<br />
<br />
It's truly <b>terrifying</b>.<br />
<br />
<b>Well, that said</b>, I was given severance from my job, and my placement for my welding training has been moved up (March 26,2012), and it's now in the evening, so I can also attempt to hold down a part-time day job to trying and get some money coming in. These are both good things.<br />
<br />
I've also decided that I'm going to start filming a series of short video posts that allow me to more fully describe my investment ideas that I am able to on this blog.<br />
<br />
I've always found it easier to talk then to type, so I feel it's a natural extension of my work here. I hope that you readers will find it entertaining and educational, and as always, feel free to comment on here, (or the video's themselves) if you have any thoughts or ideas.<br />
<br />
Thanks for baring with me through my absence - I've been having a really hard time this last while, but I'm confident in the future - Both of this blog, and life in general.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-56566133958699480872011-11-28T22:15:00.000-08:002011-11-29T13:31:49.239-08:00So you want to be rich.<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_I34JCL0SDTnM2nvu1-n_zzkiOvKL4fD0LRzr55bseA1P1B_2BH5S-QPx1HHZxcc2NrROmCDrE1PKm7PVA-XkPzwPhgByRdMN5UfzRLplBHCXrnEr5tHUHwZgtq7gg5OJTbTBMDRWKlFf/s1600/boy-holding-his-allowance.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_I34JCL0SDTnM2nvu1-n_zzkiOvKL4fD0LRzr55bseA1P1B_2BH5S-QPx1HHZxcc2NrROmCDrE1PKm7PVA-XkPzwPhgByRdMN5UfzRLplBHCXrnEr5tHUHwZgtq7gg5OJTbTBMDRWKlFf/s400/boy-holding-his-allowance.jpg" width="400" /></a></div><br />
So you want to be rich, eh?<br />
<br />
Well, this may come as a bit of a shock to the trust-fund babies in the back row, but most of the 'rich' in North America (which I personally define as having over $500,000 in net worth), <b>do not</b> come by their money by ways of inheritance or gifts.<br />
<br />
Actually, the largest majority of the rich are working class folks such as your tradesman neighbour.<br />
<br />
Ye of little faith, check out '<a href="http://www.amazon.ca/Millionaire-Next-Door-Thomas-Stanley/dp/0671015206">The millionaire next door</a>'.<br />
<br />
Although this book is a little old, having been published in 1998, I personally believe that many of the tenets within have held true.<br />
<br />
By working a steady job, earning a decent wage (much like most trades will provide), early in ones life, living below ones means, and investing patiently, <b>I believe that anyone can retire at an earlier date, and with more assets then most.</b><br />
<br />
For example, we can take a person such as myself:<br />
<br />
<b>Age</b>: 26<br />
<b>Occupation</b>: I.T. - soon to be Welder<br />
<b>Expected Wages</b>:<br />
I.T. - ~$40,000 /year<br />
Welder - ~$45,000 / year + Overtime<br />
<br />
I will work hard and make $50,000 take-home, with raises of ~$2000 /year as I gain experience and education.<br />
I will invest as much as comfortable (~$25,000 + $1000 /year)<br />
I will seek investments that are >2% dividend yield.<br />
If I realize a return of ~4% after inflation (~3%), I will see a growth of ~7%.<br />
<br />
<b>Over the next 14 years, this investment will grow to over ~$733,000!</b><br />
<br />
This means that when I am 40, I will have 3 quarters of a million dollars to my name.<br />
Does this take into account taxes?<b> No.</b><br />
Does this take into account large raises or significantly higher wages? <b>No.</b><br />
Does this take into account market volatility (up or down)? <b>No. </b><br />
But, it does show that <b>if you have the balls, and some luck, <i>you can be rich before you're 40.</i></b><br />
<br />
Will it be easy? <b>No.</b><br />
<br />
But it is possible, and as a wise man once said:<br />
<br />
<b>"The first hundred-thousand was hard. After that, it got easier."</b> <br />
<br />
<br />
----<br />
<br />
Want to see the math in action? I've posted the results of my spreadsheet calculations below, and also ran them out to the usual '40 year' working period:<br />
<br />
<br />
<b><span style="font-size: large;">Bonus Calculation Chart:</span></b><br />
<table border="0" cellspacing="0" cols="4" frame="VOID" rules="NONE"><colgroup><col width="171"></col><col width="136"></col><col width="155"></col><col width="161"></col></colgroup> <tbody>
<tr> <td height="17" style="text-align: center;" width="171"><u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b>Year</b></u></td> <td sdnum="1033;0;0.00" style="text-align: center;" width="136"><u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b>Invested</b></u></td> <td sdnum="1033;0;0.00" style="text-align: center;" width="155"><u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b>Rate Of Return</b></u></td> <td sdnum="1033;0;0.00" style="text-align: center;" width="161"><u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b><br />
</b></u><br />
<u><b>Result</b></u></td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="1" style="text-align: center;">1</td> <td sdnum="1033;0;0.00" sdval="25000" style="text-align: center;">25000.00</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="26750" style="text-align: center;">26750.00</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="2" style="text-align: center;">2</td> <td sdnum="1033;0;0.00" sdval="52750" style="text-align: center;">52750.00</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="56442.5" style="text-align: center;">56442.50</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="3" style="text-align: center;">3</td> <td sdnum="1033;0;0.00" sdval="83442.5" style="text-align: center;">83442.50</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="89283.475" style="text-align: center;">89283.48</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="4" style="text-align: center;">4</td> <td sdnum="1033;0;0.00" sdval="117283.475" style="text-align: center;">117283.48</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="125493.31825" style="text-align: center;">125493.32</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="5" style="text-align: center;">5</td> <td sdnum="1033;0;0.00" sdval="154493.31825" style="text-align: center;">154493.32</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="165307.8505275" style="text-align: center;">165307.85</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="6" style="text-align: center;">6</td> <td sdnum="1033;0;0.00" sdval="195307.8505275" style="text-align: center;">195307.85</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="208979.400064425" style="text-align: center;">208979.40</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="7" style="text-align: center;">7</td> <td sdnum="1033;0;0.00" sdval="239979.400064425" style="text-align: center;">239979.40</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="256777.958068935" style="text-align: center;">256777.96</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="8" style="text-align: center;">8</td> <td sdnum="1033;0;0.00" sdval="288777.958068935" style="text-align: center;">288777.96</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="308992.41513376" style="text-align: center;">308992.42</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="9" style="text-align: center;">9</td> <td sdnum="1033;0;0.00" sdval="341992.41513376" style="text-align: center;">341992.42</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="365931.884193123" style="text-align: center;">365931.88</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="10" style="text-align: center;">10</td> <td sdnum="1033;0;0.00" sdval="399931.884193123" style="text-align: center;">399931.88</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="427927.116086642" style="text-align: center;">427927.12</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="11" style="text-align: center;">11</td> <td sdnum="1033;0;0.00" sdval="462927.116086642" style="text-align: center;">462927.12</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="495332.014212707" style="text-align: center;">495332.01</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="12" style="text-align: center;">12</td> <td sdnum="1033;0;0.00" sdval="531332.014212707" style="text-align: center;">531332.01</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="568525.255207597" style="text-align: center;">568525.26</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="13" style="text-align: center;">13</td> <td sdnum="1033;0;0.00" sdval="605525.255207597" style="text-align: center;">605525.26</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="647912.023072128" style="text-align: center;">647912.02</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="14" style="text-align: center;"><b>14</b></td> <td sdnum="1033;0;0.00" sdval="685912.023072128" style="text-align: center;"><b>685912.02</b></td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;"><b>0.07</b></td> <td sdnum="1033;0;0.00" sdval="733925.864687177" style="text-align: center;"><b>733925.86</b></td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="15" style="text-align: center;">15</td> <td sdnum="1033;0;0.00" sdval="772925.864687177" style="text-align: center;">772925.86</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="827030.67521528" style="text-align: center;">827030.68</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="16" style="text-align: center;">16</td> <td sdnum="1033;0;0.00" sdval="867030.67521528" style="text-align: center;">867030.68</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="927722.822480349" style="text-align: center;">927722.82</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="17" style="text-align: center;">17</td> <td sdnum="1033;0;0.00" sdval="968722.822480349" style="text-align: center;">968722.82</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="1036533.42005397" style="text-align: center;">1036533.42</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="18" style="text-align: center;">18</td> <td sdnum="1033;0;0.00" sdval="1078533.42005397" style="text-align: center;">1078533.42</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="1154030.75945775" style="text-align: center;">1154030.76</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="19" style="text-align: center;">19</td> <td sdnum="1033;0;0.00" sdval="1197030.75945775" style="text-align: center;">1197030.76</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="1280822.91261979" style="text-align: center;">1280822.91</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="20" style="text-align: center;">20</td> <td sdnum="1033;0;0.00" sdval="1324822.91261979" style="text-align: center;">1324822.91</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="1417560.51650318" style="text-align: center;">1417560.52</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="21" style="text-align: center;">21</td> <td sdnum="1033;0;0.00" sdval="1462560.51650318" style="text-align: center;">1462560.52</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="1564939.7526584" style="text-align: center;">1564939.75</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="22" style="text-align: center;">22</td> <td sdnum="1033;0;0.00" sdval="1610939.7526584" style="text-align: center;">1610939.75</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="1723705.53534449" style="text-align: center;">1723705.54</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="23" style="text-align: center;">23</td> <td sdnum="1033;0;0.00" sdval="1770705.53534449" style="text-align: center;">1770705.54</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="1894654.92281861" style="text-align: center;">1894654.92</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="24" style="text-align: center;">24</td> <td sdnum="1033;0;0.00" sdval="1942654.92281861" style="text-align: center;">1942654.92</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="2078640.76741591" style="text-align: center;">2078640.77</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="25" style="text-align: center;">25</td> <td sdnum="1033;0;0.00" sdval="2127640.76741591" style="text-align: center;">2127640.77</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="2276575.62113502" style="text-align: center;">2276575.62</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="26" style="text-align: center;">26</td> <td sdnum="1033;0;0.00" sdval="2326575.62113502" style="text-align: center;">2326575.62</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="2489435.91461447" style="text-align: center;">2489435.91</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="27" style="text-align: center;">27</td> <td sdnum="1033;0;0.00" sdval="2540435.91461447" style="text-align: center;">2540435.91</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="2718266.42863749" style="text-align: center;">2718266.43</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="28" style="text-align: center;">28</td> <td sdnum="1033;0;0.00" sdval="2770266.42863749" style="text-align: center;">2770266.43</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="2964185.07864211" style="text-align: center;">2964185.08</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="29" style="text-align: center;">29</td> <td sdnum="1033;0;0.00" sdval="3017185.07864211" style="text-align: center;">3017185.08</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="3228388.03414706" style="text-align: center;">3228388.03</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="30" style="text-align: center;">30</td> <td sdnum="1033;0;0.00" sdval="3282388.03414706" style="text-align: center;">3282388.03</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="3512155.19653735" style="text-align: center;">3512155.20</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="31" style="text-align: center;">31</td> <td sdnum="1033;0;0.00" sdval="3567155.19653735" style="text-align: center;">3567155.20</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="3816856.06029497" style="text-align: center;">3816856.06</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="32" style="text-align: center;">32</td> <td sdnum="1033;0;0.00" sdval="3872856.06029497" style="text-align: center;">3872856.06</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="4143955.98451561" style="text-align: center;">4143955.98</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="33" style="text-align: center;">33</td> <td sdnum="1033;0;0.00" sdval="4200955.98451561" style="text-align: center;">4200955.98</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="4495022.90343171" style="text-align: center;">4495022.90</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="34" style="text-align: center;">34</td> <td sdnum="1033;0;0.00" sdval="4553022.90343171" style="text-align: center;">4553022.90</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="4871734.50667193" style="text-align: center;">4871734.51</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="35" style="text-align: center;">35</td> <td sdnum="1033;0;0.00" sdval="4930734.50667193" style="text-align: center;">4930734.51</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="5275885.92213896" style="text-align: center;">5275885.92</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="36" style="text-align: center;">36</td> <td sdnum="1033;0;0.00" sdval="5335885.92213896" style="text-align: center;">5335885.92</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="5709397.93668869" style="text-align: center;">5709397.94</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="37" style="text-align: center;">37</td> <td sdnum="1033;0;0.00" sdval="5770397.93668869" style="text-align: center;">5770397.94</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="6174325.7922569" style="text-align: center;">6174325.79</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="38" style="text-align: center;">38</td> <td sdnum="1033;0;0.00" sdval="6236325.7922569" style="text-align: center;">6236325.79</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="6672868.59771488" style="text-align: center;">6672868.60</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="39" style="text-align: center;">39</td> <td sdnum="1033;0;0.00" sdval="6735868.59771488" style="text-align: center;">6735868.60</td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;">0.07</td> <td sdnum="1033;0;0.00" sdval="7207379.39955492" style="text-align: center;">7207379.40</td> </tr>
<tr> <td height="17" sdnum="1033;" sdval="40" style="text-align: center;"><b>40</b></td> <td sdnum="1033;0;0.00" sdval="7271379.39955492" style="text-align: center;"><b>7271379.40</b></td> <td sdnum="1033;0;0.00" sdval="0.07" style="text-align: center;"><b>0.07</b></td> <td sdnum="1033;0;0.00" sdval="7780375.95752377" style="text-align: center;"><b>7780375.96</b></td> </tr>
</tbody> </table><br />
<br />
Want to use this spreadsheet for your own calculations? <b>Comment below and I'll e-mail it to you!</b>Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-59295070061586732262011-11-08T09:40:00.000-08:002011-11-08T09:42:26.695-08:00I'm going to try Welding as a career.<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgui-VhT8KlFqMBnD8klNlz5bTeE7sX7bc0Z-TwwvPwQ4Baw1ZtI9ia7AK56alaLm8YudtUmi_NGJKkAz7OPBjU0HQbYIXgSbDF3YUKq7rqFdoIYreblyaMFDOnim80Bt0KWtjE4VxFIz-Z/s1600/MIG_WELDING.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgui-VhT8KlFqMBnD8klNlz5bTeE7sX7bc0Z-TwwvPwQ4Baw1ZtI9ia7AK56alaLm8YudtUmi_NGJKkAz7OPBjU0HQbYIXgSbDF3YUKq7rqFdoIYreblyaMFDOnim80Bt0KWtjE4VxFIz-Z/s640/MIG_WELDING.jpg" width="640" /></a></div><div style="text-align: center;"><br />
</div><br />
<br />
<b>I'd like to pardon the break I've been having - I've been particularly busy, and my health has begun to suffer with the colder weather. </b><br />
<br />
I had mentioned previously that I am taking a part-time welding course at a local school.<br />
<br />
Well, over the last six weeks, it has peaked my interest, and now I have signed up to take the foundation levels course, which is 7 months long, full-time.<br />
<br />
The province of BC, where I live, has recently received a very large, $8 billion dollar contract to build non-combat support ships (boats) for the federal government's navy. This means that there will be alot of work for trades people (especially iron workers, welders, millwrights, et al).<br />
<br />
Between getting all of my ducks in a row to apply for the university level course to learn how to be a level C welder (the most basic, and often used level of techniques), I have been incredibly stressed and anxious. My health has been slowly getting poorer due to this and the chill that recently cut through our area.<br />
<br />
I planned on having a long-term income for my investing, such as what I have at my current workplace. But the lure of making over $25/hour, and being eligible for overtime has made me see that I could make over double what I make at my current job if I go into a trade and upgrade my education in that trade as I go along.<br />
<br />
My current job makes $35800 a year, gross (before taxes).<br />
A C-level welder can make $42,000 gross at $25/hour (40 hours/week, no overtime, before taxes)<br />
<br />
My current job has told me that will provide a $5000 raise every year (based on performance, and not guaranteed).<br />
<br />
After 1 year total experience as a C-Level welder, (7 months of school + 5 months of work), you gain a C-Level sticker in your 'trades book'. This means that you have the possibility of asking for a higher wage, as you are an 'accredited' C-Level at that point.<br />
<br />
Then, you can take the B-Level testing, which is 5 months. After 1 year total experience as a b-Level (5 months of school and 7 months of work) you can get the accreditation as a 'B'-Level, which means, again more job eligibility. There as also more accreditation down the road that can add more to your 'trade book', and offer additional opportunities.<br />
<br />
So basically, by going to school for 7 months, I would have to move back in with the parents, which I had hoped to avoid, as I want to allow them to have more money to save for retirement.<br />
<br />
But, I don't see much other choice, as it would be very tough for me to somehow make enough money (be it on the markets or elsewhere) to pay for the rent for me, and my girlfriend, in our current residence.<br />
<br />
So, I am looking for decent exit points for most of my investments, so that I have a surplus of cash available for all of the expenses that will come up when I am going to school.<br />
<br />
I have yet to tell my work that I am leaving though. They are a small business, and frankly, I think the business owner would become very, very agitated that I am leaving (he is Italian, and <i>very, very</i> irritable).<br />
<br />
I just finished the last of the tests and entry requirements for the course last week. I am pegged to go at the start of March or April 2012 at the earliest, depending on if people drop out of the March course, and let me go earlier.<br />
<br />
The primary work for the big ship-building contract start late 2012, so if I get in early enough, I can try to apply directly for that work. Otherwise, there will be many shops and companies that lose their welders to that large contract at the docks, and I can apply for those openings as well.<br />
<br />
I just hope to hell that this works out. Maybe there won't even be any work for me to do - Maybe this schooling will be worthless, and an entirely futile exercise.<br />
<br />
We'll see.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com2tag:blogger.com,1999:blog-6738695494242364085.post-48358060271326167272011-10-19T15:40:00.000-07:002011-10-19T15:40:58.411-07:00Net Worth Update: October 15, 2011So, this month, I did sell (*gasp*) some of my investments that had become overpriced. I then bought them back a few days later, after they dropped again, all without missing a dividend. Ha.<br />
<br />
My goal progress increased by about .45% (from .739% to .784% of my goal of $1,000,000 dollars net worth).<br />
<br />
<br />
(This post summarized my current net worth in an easy to read table - It's a snapshot, so as unforeseen expenses or windfalls accrue in the month, this will become less relevant.)<br />
<span style="font-size: small;"><br />
</span><br />
<table border="2" cellspacing="0" style="width: 612px;"><tbody>
<tr valign="top"> <td bgcolor="#000000" height="12" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Net Assets</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Sept-30-11</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Oct-15-11</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Change</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>%</b></span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Emergency Fund<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 1,000.00</span></td> <td><span style="color: red; font-family: Arial; font-size: small;"> <span style="color: black;">$ 1,000.00<br />
</span></span></td> <td><span style="font-family: Arial; font-size: small;"> $ -<br />
</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Taxable Accounts<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -<br />
</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Taxable Brokerage </span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">$ -</span> </td> <td><span style="font-family: Arial; font-size: small;">$ <br />
</span></td> <td><span style="font-size: small;"><span style="font-family: Arial;">0.00%</span></span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">TFSA Brokerage (Book) </span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">6872.44</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 7277.36</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 404.92</span></td> <td><span style="font-family: Arial; font-size: small;"> 6%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">RRSP Accounts </span></td> <td><span style="font-family: Arial; font-size: small;">$ 565.00<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 565.00</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Stock Options</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">ESPP</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">House</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Receivable (Payable)</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Other Assets</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Total Assets</span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial,Helvetica,sans-serif;">8437.44</span> </td> <td><span style="font-family: Arial,Helvetica,sans-serif;">$ 8842.36</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 404.92</span></td> <td><span style="font-family: Arial; font-size: small;"> 5%</span></td> </tr>
<tr valign="top"> <td bgcolor="#000000" height="12" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Liabilities</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Credit Cards<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">Mortgage</span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Tax Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Other Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;">$ - </span> </td> <td><span style="font-family: Arial; font-size: small;">$ - </span> </td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Total Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td bgcolor="#c0c0c0" height="12"><span style="font-family: Arial; font-size: small;"> <span style="font-size: x-small;">Goal Progress ($1,000,000 CAD)</span></span><br />
<span style="font-family: Arial; font-size: x-small;">(Investments + House - Liabilities) </span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;">$</span><span style="font-size: small;"><span style="font-family: Arial;"> </span></span><span style="font-family: Arial; font-size: small;">7392.44</span><span style="font-family: Arial; font-size: small;"> </span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial,Helvetica,sans-serif;">7842.36</span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;"> $ 409.92</span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;">.784% </span><br />
<span style="font-family: Arial; font-size: small;">(Total)</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;"> Net Worth </span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">8392.44</span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial,Helvetica,sans-serif;">8842.36</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ 409.92</span></td> <td><span style="font-family: Arial; font-size: small;"> 5%</span></td> </tr>
</tbody> </table><br />
<br />
(This chart is a modified version of Brien's 'Net Worth' chart from <a href="http://www.2millionblog.com/">www.2millionblog.com</a>. It is used with permission.)Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-47390452498198562642011-10-14T10:41:00.000-07:002011-10-14T10:41:25.974-07:00Giving a Friend Permission to Spend<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9NpY38rxAigDF57CyMyI-y_z-25YkNqbX3gzLpLINRun_Vly165KqxxWBTSOAB7xOHllkEObc8lrL7AtcnBdfdVCtvbkhmOHZYbEFFsXvusQvHtXQRctD7w-v4E71cpz1hBgDviWJHmof/s1600/WasteMoney_xlarge.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9NpY38rxAigDF57CyMyI-y_z-25YkNqbX3gzLpLINRun_Vly165KqxxWBTSOAB7xOHllkEObc8lrL7AtcnBdfdVCtvbkhmOHZYbEFFsXvusQvHtXQRctD7w-v4E71cpz1hBgDviWJHmof/s320/WasteMoney_xlarge.jpeg" width="239" /></a></div><br />
I have a friend at work who fulfills any and all of his wants, on a whim.<br />
Whenever he has more then a $100 in his chequeing account, he immediately liquidates it on a want.<br />
If there isn't quite enough to cover the want, then it goes on a credit card.<br />
<br />
This would be a decent, if future-less life strategy, if he paid off his credit card every month, and had no debt.<br />
The problem is, <b>he has nearly $30,000 of debt in a line of credit</b>.<br />
<br />
He will come to me asking for advice on his most recent want.<br />
I tell him the same thing every time.<br />
<ol><li>Make an emergency fund of $1000.</li>
<li>Set a small monthly amount (~$100) for discretionary spending. </li>
<li>Pay off the debt with everything left over after necessities.</li>
</ol>He does not follow this advice.<br />
Instead, he will come back to me for <i>more </i>advice. <br />
Then I realized something.<br />
<br />
<br />
<span style="font-size: x-large;"><b>He is <i>asking for permission to spend!</i></b></span><br />
<br />
<br />
I I think this is why we have such a strained friendship at timesonly give him permission to spend a the small discretionary budget, and. Personally, I don't feel a need to spend money all the time; I am usually happy with inexpensive or free diversions.<br />
<br />
It has gotten to the point where I can't even bear to speak to him about money anymore.<br />
Everytime I tell him to save money and pay off his debt, he will leave depressed.<br />
Worse yet, he will come back to see me again with a new toy in hand, happy as a clam.<br />
<br />
He knows that this is not a healthy pattern of behavior, but he continues never-the-less.<br />
<br />
<br />
<br />
<br />
<span style="font-size: x-large;"><b>What can we do to help this wild spendthrift?</b></span><br />
<br />
There isn't much we can do directly.<br />
<br />
But, we <i>can</i> make our frugal lifestyle seem better and better every time we see them.<br />
<br />
We can also show them a calendar that states exactly when you're planning to retire, and how it is many years (maybe decades!) before they even thought possible.<br />
<br />
Then, explain that the date keeps inching earlier and earlier due to our good habits, and putting windfalls towards it.<br />
<br />
<span style="font-size: x-large;"><i><b>Leading by example, we can help those without the natural willpower to save and invest.</b></i></span><br />
<br />
<br />
<br />
EJEarning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-47128118324516195872011-10-13T09:00:00.000-07:002011-10-13T09:00:05.608-07:00Planning Ahead - How to make goals for your future - Pt 2.Yesterday, I talked about the levels of goals I use.<br />
Today, I'll talk about how to use those levels to speed your progress to making your dreams come true!<br />
<br />
<br />
<br />
<span style="font-size: x-large;"><b>Jack, Dreams are silly. </b></span><br />
<span style="font-size: x-large;"><b>Dreamers are lazy and always fail.</b></span><br />
<br />
This is incorrect.<br />
Dreamers are the visionaries of the future.<br />
<br />
Many of the most successful (and famous) people in the world are dreamers.<br />
CEO's, actors, inventors, pilots, astronauts, scientists, etc.<br />
<br />
These people use their passion to do something that isn't commonly thought possible, and make that dream come true by following through.<br />
<br />
<b>I believe passion for dreams is at the heart of every goal (and success).</b><br />
<br />
If you can't feel a warmth in your heart for a goal (or the payoff of that goal), then I believe it's nearly impossible to achieve it.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Take your big goal and make it smaller.</b></span><br />
<br />
No, I don't mean moving to Idaho instead of Australia.<br />
<br />
I mean you should break down your big goal into smaller, and more easily accomplished 'pieces'.<br />
<br />
If you try to 'move to Australia on only $380.50' then you will be sorely disappointed when you fail to succeed on that goal.<br />
<br />
But if you put that $380.50 a week into your 'move to Australia' fund, then you have accomplished a 'piece' of that larger goal. You can feel proud of that. You will be moving towards meeting your goal. And every time you do it, and see the balance increase, you will feel empowered and accomplished.<br />
<br />
<b>This sense of accomplishment helps drives us to our goals!</b><br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Build 'sub-goals' from the pieces of larger goals.</b></span><br />
<br />
Take all of those large goal 'pieces', and make them into small 'sub-goals'. Smaller goals are easier to follow through on, and still give you a sense of accomplishment.<br />
<br />
Plus, many small efforts will nearly always provide a better result then one large effort.<br />
<br />
This is true in goals, and also in investment.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Putting it all together</b></span>.<br />
<br />
Let's run with the example about the person that wants to move to Australia.<br />
Imagine that the person created sub-goals when she:<br />
<ul><li> Broke down the saving into a weekly amount.</li>
<li>Concentrated on searching for good, discounted housing in Australia, instead of moving into a more popular, expensive area.</li>
<li>Worked hard to lineup a job for her when she gets there.</li>
</ul>All of these smaller 'sub-goal's have a positive effect on her chances of success.<br />
<br />
<u><b>Immediately</b></u><br />
Cost to move to Australia immediately (housing, travel costs, no job): $ 200,000<br />
Cash in pocket this week: $380.50<br />
<i>Immediate goal success rate: 0%</i><br />
<br />
<u><b>3 year deferral</b></u><br />
Cost effect of deferring move 3 years: $120,000<br />
(hunting for discounted housing, travel, and lining up a job in Australia) <br />
Cash in hand from saving $380.50 a week (@ 1.5%) for 3 years: ~$60,780<br />
<i>Goal success rate: ~50% - She is short by approximately half. She may be able to make it, but maybe not.</i><br />
<br />
<u><b>5 year deferral</b></u><br />
Cost of deferring move 5 years: $110,000<br />
(hunting for discounted housing, travel, and lining up a job in Australia +1) <br />
Cash in hand from saving $380.50 a week (@ 1.5%) for 3 years: $102,945<br />
<i>Goal success rate: ~92% - She has almost the entire amount in full, and has and excellent chance of making a good life in Australia.</i><br />
<br />
<span style="font-size: small;"><b>By saving up, and achieving sub-goals, she has changed her chances of success from 0% to<i> over 90%.</i></b></span><br />
<br />
It's very similar if you have any sort of 'overwhelming' large goal, like paying off a house, or investing for passive income.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Moral </b></span><br />
<span style="font-size: large;"><b>If your goal is overwhelming, break it up into smaller pieces that are easier to accomplish. </b></span><br />
<br />
<b><span style="font-size: large;"><i>Then get out there, and Start Accomplishing!</i></span></b><br />
<br />
<br />
<br />
EJEarning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-43115999233326709922011-10-12T09:00:00.000-07:002011-10-12T09:00:00.608-07:00Planning Ahead - How to make goals for your future - Pt 1.<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifGpisjGvAghODYQBF5MHupIzgYF3FYG4cMRynRoznYCy8_hMjX_1mgCUe7T5snt6w273k_6Z88ligA88mtweu5HidJEGkiD3o1QBdCWnzkcxhyrpYsslxtRBqwhinH-abzy4fr88fCW2m/s1600/goal2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifGpisjGvAghODYQBF5MHupIzgYF3FYG4cMRynRoznYCy8_hMjX_1mgCUe7T5snt6w273k_6Z88ligA88mtweu5HidJEGkiD3o1QBdCWnzkcxhyrpYsslxtRBqwhinH-abzy4fr88fCW2m/s400/goal2.jpg" width="400" /></a></div><div style="text-align: center;"><br />
</div><span style="font-size: x-large;"><b>Jack, I'm trying to get my life in order, but I'm not making any progress!</b></span><br />
<span style="font-size: x-large;"><b>How do you get to your dreams? </b></span><br />
<br />
I'm not very good at planning, but I am quite good at making (and <i>reaching</i>) <b>goals</b>.<br />
<span style="font-size: large;"><br />
</span><br />
<i><span style="font-size: large;"><b>Goals.</b></span></i><br />
<br />
Take a long look at that word - It's going to give you bulls-eyes on the wall to aim for. Without these targets, much of your efforts will simply not move you any closer to where you want to be (your 'dreams').<br />
<br />
I personally imagine 5 main levels of goals:<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Daily Goals.</b></span><br />
<br />
These goals are very simply, easily attainable goals that you can accomplish <i>in about a day.</i><br />
Examples would be:<br />
<ul><li>Cutting the lawn.</li>
<li>Browsing over your investments.</li>
<li>Rolling some coins to deposit in the bank.</li>
<li>Reading a self-help book.</li>
<li>Learn a basic part of a new skill.</li>
<li>Clean the house.</li>
<li>Write a few pages for a book</li>
</ul><br />
<br />
<span style="font-size: large;"><b>Short-Term Goals</b></span><br />
<br />
These goals are a little more involved, as you have to start to apply some concerted effort to complete them. They should span about <i>one week.</i> <br />
<br />
<ul><li>Get through the work-week.</li>
<li>Search for & research a new car.</li>
<li>Clean up a storage unit & dispose/donate old items.</li>
<li>Prepare for a large social gathering.</li>
<li>Research and Invest some money in an equity.<br />
</li>
</ul><br />
<br />
<span style="font-size: large;"><b>Medium-Term Goals</b></span><br />
<br />
These goals are those that you will have to revisit quite a bit over a longer period of time to complete. These will generally take you approximately <i>one to three months.</i><br />
<br />
<ul><li>Search for / inspect a new home.</li>
<li>Earn a paycheque.</li>
<li>Write a few chapters for a book.</li>
<li>Pay off a small portion of debt.</li>
<li>Teach someone else one of your skills.</li>
</ul><br />
<br />
<span style="font-size: large;"><b>Long-Term Goals</b></span><br />
<br />
These are goals that will need to have a large amount of additional effort put towards them for a long time in order to be fulfilled. This group is where you place any goals that you have a decent idea of the completion time, but will take over <i>three months</i>.<br />
<br />
<ul><li>Paying off a house.</li>
<li>Paying off a large debt.</li>
<li>Living off passive income</li>
</ul><br />
<br />
<span style="font-size: large;"><b>Lifetime Goals</b></span><br />
<br />
This is where goals that are not 'explicitly plan-able' go. That is, you are not able to make an decent, short-term estimate about how this is going to happen yet. When you do have the means to make a fairly accurate estimate of when this goal will be fulfilled, then move it into the 'long-term' goals.<br />
<br />
<ul><li>Live off passive income.</li>
<li>Find a life-long partner & raise a family.</li>
<li>Travel or move someplace far away.</li>
<li>Purchase a large piece of property in the country.</li>
</ul><br />
<br />
<span style="font-size: large;"><span style="font-size: x-large;"><b>But Jack, all of my goals will take over a year to complete!</b></span></span><br />
<span style="font-size: large;"><span style="font-size: x-large;"><b>I don't have any shorter term goals at all!</b></span> </span><br />
<br />
Make some.<br />
<br />
By not having any easily attainable goals, you miss out on feeling the rush of accomplishment that comes with meeting and exceeding those goals!<br />
<br />
Next day, I'll talk about some strategies for breaking down your larger goal into smaller goals that are more easily accomplished.<br />
<br />
<br />
<br />
EJ <br />
<b> </b>Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-44542140266996384202011-10-11T09:00:00.000-07:002011-10-11T09:00:11.137-07:00Being Addicted to Investing<div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigkEmAppy_1A_uIpJzJ7MZi1WyvNNeatmQAmbYtiekw-hhGiwdS6fkQ5s-s5GvXOGH3nZr8CUGIv6Kdfc-RbZ24vVk2oZrVbD3_l8VDKZ2jOtJiCoZvwBSZGjXWdeRBhyphenhyphenP-OsgKlJ2qYaP/s1600/invest.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigkEmAppy_1A_uIpJzJ7MZi1WyvNNeatmQAmbYtiekw-hhGiwdS6fkQ5s-s5GvXOGH3nZr8CUGIv6Kdfc-RbZ24vVk2oZrVbD3_l8VDKZ2jOtJiCoZvwBSZGjXWdeRBhyphenhyphenP-OsgKlJ2qYaP/s320/invest.jpg" width="271" /></a></div>Now that I have started investing in companies through the Toronto Stock Exchange (The TSX), I have begun to constantly wish that I had more to invest.<br />
<br />
<i>If I only had more, I would be able to take advantage of the growth and passive income opportunities of the market!</i><br />
<br />
But then again, I have to live my life, pay my rent, buy groceries, pay bills, and all the other 'fun' things that people do these days.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>How do you know you're investing too much, let alone too much in a single company?</b></span><br />
<br />
I believe that if you put more then 50% of your income into stocks, you are either crazy, or absolutely driven. Both of these states are very risky, and you can lose control very easily.<br />
I'd like to make it clear that I am currently one of these 'crazy or driven' people.<br />
<br />
Some of the things that 'driven' investors may do:<br />
<ul><li>Take a loan to invest.</li>
<li>Sell low value objects to secure funds for investment.</li>
<li>Bypass low-cost opportunities that may enrich their lives in non-financial ways.</li>
<li>Lower their cost of living to sub-poverty levels to free up funds.</li>
<li>Take a second job for that 'little bit extra'.</li>
</ul><br />
All of these habits are similar to what someone with a substance abuse problem would do to secure funds for their next 'fix'.<br />
<br />
Investing is a positive thing. Taking a Tylenol for pain occasionally is also a positive thing. They both improve quality of life.<br />
<br />
But if you need to invest, and it drives you like a burning craving in your soul, perhaps it is time to step back and take a look at your plan. Does it really make a difference if you sell the $10 coffee gift card you received for your birthday just to buy one more share of EXE.UN ?<br />
<br />
I guarantee you there are a few investors who would say <i>yes</i>.<br />
<br />
And I would like to say right now, that there are more important things then having that one more share.<br />
<br />
<ul><li>Go outside.</li>
<li>Walk to the library, and read a novel.</li>
<li>Meet for coffee with an old friend.</li>
<li>Paint a picture.</li>
<li>Have a family member over for dinner.</li>
</ul><br />
<br />
<span style="font-size: large;"><b>Make the most of your life, and enjoy the low-cost activities that are available to you.</b></span><br />
<br />
After all, that share may eventually help pay for your work-free lifestyle, but <i>it will never bring back the people, places, and experiences that you are able to have today.</i><br />
<br />
<br />
<br />
EJEarning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-69944529255444709382011-10-10T11:59:00.000-07:002011-10-10T11:59:00.236-07:00Happy Thanksgiving!<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuNLxA45li91-xny-3JQE8E2tONP_DMxn19XWgOFali3CG31AsLsf_eYVmIj1dCGdN1YF7h13YsSQQgJ9bkUWossExeF8bU88qtSN33lPB_iCnLIt2bnzuAcDfvfT_QCe89Gouc-XRJImq/s1600/thanksgiving-charlie-brown-snoopy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuNLxA45li91-xny-3JQE8E2tONP_DMxn19XWgOFali3CG31AsLsf_eYVmIj1dCGdN1YF7h13YsSQQgJ9bkUWossExeF8bU88qtSN33lPB_iCnLIt2bnzuAcDfvfT_QCe89Gouc-XRJImq/s320/thanksgiving-charlie-brown-snoopy.jpg" width="320" /></a></div><div style="text-align: center;"><span style="font-size: x-large;"><b>Happy Thanksgiving, everyone!</b></span></div><div style="text-align: center;"><br />
</div><div style="text-align: center;"><br />
</div><div style="text-align: left;"><span style="font-size: small;">I hope that all of you are enjoying the warm company of familiar faces, friends and family. Perhaps there is a bird in the oven, and the small is already making your mouth water.</span></div><div style="text-align: left;"><br />
</div><div style="text-align: left;">Take this time to remember all that you are blessed to have, and that as long as you plan to succeed, you will only come closer and closer to your dreams :).</div><div style="text-align: left;"><br />
</div><div style="text-align: left;">Know that you have my warmest wishes, and that I hope you have a very Happy Thanksgiving!</div><div style="text-align: left;"><br />
</div><div style="text-align: left;">I'm going to go help prepare our dinner feast! </div>Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-91259614013442623822011-10-07T09:00:00.002-07:002011-10-07T09:00:05.968-07:00Taking loans from family members<div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKS59xA_BvZnNk8vgCn4rggBPRHz9tPgaq5h0duQYx8hZdq9oxKQ6alj2C8T7bEOWdIksx48WlwDuJm46VtAvrlxl7uFoQdvC8gxjkmLw0CyQTgcvQcigXyXt0K8gooNNXgNQVlu7Bncmr/s1600/loans+picture.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKS59xA_BvZnNk8vgCn4rggBPRHz9tPgaq5h0duQYx8hZdq9oxKQ6alj2C8T7bEOWdIksx48WlwDuJm46VtAvrlxl7uFoQdvC8gxjkmLw0CyQTgcvQcigXyXt0K8gooNNXgNQVlu7Bncmr/s320/loans+picture.jpg" width="320" /></a></div>I'd like to talk today about a topic that I've often had come up from my friends (and even some of my relatives).<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Should I take a loan from a family member, Jack? They really want to help me, and I really need the money!</b></span><br />
<br />
There are a few questions we have to ask ourselves:<br />
<br />
<b>1) How badly do you need the money?</b><br />
<br />
Are you so broke you can't buy food, or are you just paying off your credit card enough to let you get another double-fudge mocha-chino?<br />
<br />
<b>2) How long until you will be able to pay back the loan?</b><br />
<br />
If you have no idea when you will be able to pay the person back, then you should seriously review your reasoning behind considering this a loan, and not a forced 'gift' from a relative.<br />
<br />
<b>3) What is the money for?</b><br />
<br />
Do you need the money to purchase something you don't need, like a new TV, or a high-end coffee-maker? Then you don't need that money, you need to grow some will-power.<br />
<br />
<b>4) Does the person you are taking the loan from need the money more then you?</b> <br />
<br />
I have seen people take a 'loan' from a parent that didn't have two pennies to rub together, and was hair-deep in debt. The person taking the loan didn't even flinch when they spent the considerable wad of loaned cash at the bar, treating all her friends to cocktails and martinis.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>But Jack! I really want the new <span style="color: red; font-size: small;">(Consumer garbage)</span> now! It's only <span style="color: red; font-size: small;">(Inflated price)</span>, and I can't live without it! Daddy will pay for it from his RRSP!</b></span><br />
<br />
Grow the hell up.<br />
<br />
You are an adult now, or soon will be. You've got to belly-up to the reality that you're rarely going to be able to afford everything you want.<br />
<br />
You've also got to accept that by being so spineless, you're influencing people to be just like you.<br />
<br />
Your relatives don't need to lose more money. They likely had to endure some sort of hardship for it, whether it was working for 20 years straight, or inheriting it from a loved one.<br />
<br />
<i>And just think</i>, if your children grow up to be just like you, eventually, you'll be on the receiving end of these same pathetic cries for money.<br />
<br />
<span style="font-size: large;"><b>Key Points:</b></span> <br />
- Be responsible.<br />
- Don't pull others down into your pit of debt.<br />
- Consider other people's situations.<br />
- Don't spend money when it's not nessicary.<br />
- Grow some willpower.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com2tag:blogger.com,1999:blog-6738695494242364085.post-18502594990239613832011-10-06T09:00:00.001-07:002011-10-06T09:00:04.148-07:00Watching my investments (and the market) fall<div class="separator" style="clear: both; text-align: center;"><a href="http://t3.gstatic.com/images?q=tbn:ANd9GcQKYAzo1Fdu9CguFla4cFg7GF4vP88kvQYw56RTt6NZv3yacucozw" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://t3.gstatic.com/images?q=tbn:ANd9GcQKYAzo1Fdu9CguFla4cFg7GF4vP88kvQYw56RTt6NZv3yacucozw" /></a></div><br />
Well, with the recent downturn, I've been watching nearly every one of me investments tank.<br />
<br />
<b><span style="font-size: large;"><br />
</span></b><br />
<b><span style="font-size: large;">Well, Jack, I bet you're feeling like a big fat fool now; all that money down the drain!</span></b><br />
<br />
Not so fast.<br />
<br />
My investments were all into decently strong dividend stocks. The fact is, the investment I've put the most into pays a healthy monthly dividend. At these current prices, my Synthetic DRIP (Dividend Re-Invesment Plan) will buy two whole shares instead of one.<br />
<br />
Which means that these low prices have actually ACCELERATED my plans, not caused them any lasting harm.<br />
<br />
In fact you could say that with this downturn, my investments are worth MORE to me then before!<br />
<br />
They will purchase a nice boost of shares, and I win. My dividend income goes up, because more shares are purchased.<br />
<br />
So, Am I throughly stressed by the market's fall? No.<br />
Am I somewhat nervous? Yes, of course.<br />
<br />
Remember, I've only been invested in the market for just over a month.<br />
<br />
I don't have the personal experience of long-term investment woes.<br />
<br />
But at the current state of the markets, am I running for the hills? No.<br />
I'm going to sit here at my desk at work, and write posts, and read non-market news, and try to relax, and think about having a nice fat passive income stream to look forward to in the future.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com2tag:blogger.com,1999:blog-6738695494242364085.post-86527422300338816612011-10-05T11:09:00.000-07:002011-10-05T12:39:10.438-07:00Rent or Buy in Vancouver, BC<div class="separator" style="clear: both; text-align: center;"><a href="http://www.vancouverapartmentsforrent.ca/apartments-images/apartments-for-rent-in-vancouver.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="239" src="http://www.vancouverapartmentsforrent.ca/apartments-images/apartments-for-rent-in-vancouver.jpg" width="320" /></a></div><b>I received a comment on my previous post, and I wanted to write a bit on it today.</b><br />
<br />
<i>Anna said...</i><br />
<br />
<div style="font-family: Georgia,"Times New Roman",serif;">I am currently renting and want to buy a home of my own. The housing market where I live is very expensive - Vancouver, B.C. Would I be better off investing my money and waiting longer or should I save as much as I can and jumping into the real estate game as soon as possible?? Thanks. Anna.</div><br />
<br />
<br />
<span style="font-size: large;"><b>Should I Rent and Invest, or Buy in Vancouver B.C, Jack?</b></span><br />
<br />
This is a bit of a loaded question because I don't have the whole picture. There are quite a few questions that would be needed to be answered for me to make any sort of recommendation.<br />
<br />
How much does she make in a year?<br />
Is she in a sustainable industry?<br />
Does she have any dependents?<br />
Does she have to remain in Vancouver for her job?<br />
How much does she have saved up for a down-payment?<br />
<br />
<b>I'm going to dig deep and make up some numbers here.</b><br />
<br />
<br />
<br />
<b><u>Anna Version 1</u></b><br />
Age: 25<br />
Annual Income: $42000 (Gross)<br />
Job Industry: Stable<br />
Job requires remaining in city: Yes<br />
Dependents: None <br />
Down-payment Saved: $32000<br />
<br />
For this Anna, she could survive by renting a postage stamp apartment, without much room, and have still have a bit left over at the end of the month. If she expects to be able to live in style, she is sorely mistaken.<br />
<br />
In my search for rental apartments in Vancouver I was unable to find hardly anything to rent for less then $1500 a month. And that is a small, 1 bedroom apartment in the rougher part of town.<br />
<br />
To purchase, the costs are in the range of ~$200000 for a 'dumpy', old apartment on the wrong side of town. She would be able to swing this, and maybe even ~$225000, and still be under the ~38% maximum percentage of income mortgage payment.<br />
<br />
What would she have in the ~20-25 years it takes her to pay off the mortgage?<br />
<br />
A dumpy, old, smelly apartment on the wrong side of town.<br />
<br />
I would rent for the moment, invest any largely spare money into stable, long term, passive income investments, and try to go for a promotion. If she purchases in Vancouver's core, in a few years, I don't believe she'll be happy with the results.<br />
<br />
After she has some more saved up, and perhaps a small passive income stream to help her along, I would move out of the city, and secure a house at a fraction of the cost. She could get a part time job, and start enjoying her life instead of living a hand-to-mouth existence in the city.<br />
<br />
<br />
<br />
<b><u>Anna Version 2</u></b><br />
Age:31<br />
Annual Income: $75000 (Gross)<br />
Job Industry:Unstable<br />
Job requires remaining in city: No<br />
Dependents: 1 Child, Single Parent <br />
<br />
Down-payment Saved: $12000<br />
<br />
This Anna was blessed with a child earlier in her life, at 23. She had finished school, and now works as a sales rep for a pharmaceutical company that sells a newer, untested drug for good profit. She will be the first to get fired if the profits stop flowing, but she makes good money at the moment.<br />
<br />
She doesn't have enough money saved up to even think about buying in the city.<br />
<br />
She needs a little more space, and would prefer to be nearer schools for her child.<br />
<br />
The 'husband' disappeared a long time ago.<br />
<br />
I believe that she should consider moving out of the city. I feel this way because I don't believe that the city is the best place to raise a child, especially when you work full-time and don't have any help from a spouse.<br />
<br />
She may even be able to work out a tele-commuting agreement with her current employer, and the locational-leeway would allow her to pick a place that has some space for her child, as well be nearer to schools and other family oriented activities (parks, playgrounds, cinemas, etc).<br />
<br />
<br />
<br />
<b><u>Anna Version 3</u></b><br />
Age: 27<br />
Annual Income: $38000 (Gross)<br />
Job Industry: Stable<br />
Job requires remaining in city: Yes<br />
Dependents: None <br />
<br />
Down-payment Saved: $52000<br />
<br />
This Anna has a sizable down-payment saved. Perhaps it was inherited, because her job certainly doesn't allow for that amount of savings.<br />
<br />
She could get a mortgage for a place up to around ~$250000, but that still isn't much better then a slummy apartment.<br />
<br />
She has to stay in the city for her job, but her job is pretty poor income for a city-living person. It's likely that she could move out of the city, and put that down payment to far better use on a house outside of the city.<br />
<br />
There are even tracks of land in the 'boonies' that are less then ~$100000. She could own a few acres on the outskirts of civilization in a few years, take a few more to set up a long-term passive income stream, and raise her child in the peace and quiet of the country.<br />
<br />
Maybe she would even have the time to teach her child the value of hard work and having a good savings and investing plan.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Jack, you obviously don't like the city! What if I want to live in the city, and buy a scummy apartment for a small fortune?</b></span><br />
<br />
All the more power to you.<br />
<br />
Just don't say I didn't warn you when you're gaining on 45 and you don't have anything to your name but a mortgage for a scummy apartment on the wrong side of the tracks, with a gorgeous view of a brick wall and the cringe-worthy stench of the docks.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com2tag:blogger.com,1999:blog-6738695494242364085.post-46698209192244077992011-10-04T09:00:00.000-07:002011-10-05T11:56:28.710-07:00Hate working? Invest in passive income!I'd like to talk about why I put nearly 85% of my income into passive income investments.<br />
<br />
The fact of that matter is: <span style="font-size: large;"><b><i>I hate working.</i></b></span><br />
<br />
I dislike the idea of being under someones thumb so much, that I will suffer in a dead-end, decent wage job for a long time, <b><i>if it means I wont have to work for someone else ever again</i>.</b><br />
<br />
Every time I plunk down some of my paycheque on a passive investment, I feel like a little piece of me has ascended away from the daily 'rat race' toil, and if I just sock a little more away, I just might be able to get away from the god-forsaken hell that is full-time work.<br />
<br />
So, I watch my investments, I view the market as a key to a problem that I have never been able to solve - Living without having to work for that living.<br />
<br />
Will my $19.74 this October allow me to live without a care? No.<br />
<br />
But it will make a small difference, and if enough of those small differences stack up, it just might allow me to live the way I've always wanted:<br />
<br />
<i style="color: red;"><b>Professionally Unemployed.</b></i>Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com3tag:blogger.com,1999:blog-6738695494242364085.post-23650788886368975502011-10-03T11:28:00.000-07:002011-10-05T11:58:08.643-07:00Dividend Income Update - October 2011This month, I jumped in on some more SLF (Sunlife Financial) because I believe them to be a bargain price for such a well-run financial firm.<br />
<br />
I purchased 45 units at $24, which makes the $.36 quarterly dividend approximately a 6% yield. I believe this to be excellent for a company that has never dropped it's dividends.<br />
<br />
This month is probably going to be one of my slowest months ever for dividends. Add that to the fact that the weather is pretty rainy and depressing makes for more of a slog then a slide into dividend-funded happiness.<br />
<br />
I'm going to add an additional Dividend Income Update for the end of October, and show what I truly received as opposed to what I'm estimating to receive this month like I am here. <br />
<br />
Here's hoping that I'm able to add another great position this month! :-D<br />
<br />
<br />
<table border="2" cellspacing="0" style="width: 612px;"><tbody>
<tr valign="top"> <td bgcolor="#000000" height="12" style="background-color: #ccffff; color: black;"><b>Equity (Stock, Bond, ETF, etc)</b></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><b>Amount (In Shares)</b></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><b>Dividends Paid This Month</b></td> </tr>
<tr valign="top"> <td>Artis REIT (AX.UN)</td> <td>200</td> <td>$18</td></tr>
<tr valign="top"> <td>Canadian REIT(REF.UN)</td> <td>1</td> <td>$.12</td> </tr>
<tr valign="top"> <td>Bank of Montreal (BMO)</td> <td>1</td> <td>$.70</td> </tr>
<tr valign="top"> <td>Bank of Nova Scotia (BNS)</td> <td>1</td> <td>$.52</td> </tr>
<tr valign="top"> <td>Emera Inc. (EMA)</td> <td>1</td> <td>$.33</td> </tr>
<tr valign="top"> <td>Pengrowth Energy (PGF)</td> <td>1</td> <td>$.7</td> </tr>
</tbody> </table><br />
<br />
<b>Total Dividends for month of October: <i><span style="color: red; font-size: large;"> $19.74</span></i></b>Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-5106209658558679012011-09-30T09:42:00.000-07:002011-09-30T09:42:00.816-07:00Net Worth Update: September, 30, 2011So, this month, I did invest a good chunk of change into dividend stocks.<br />
<br />
I will be posting a 'Dividend Income Update' every once in a while, so you (and I) can track my progress.<br />
<br />
I'd again like to caution anyone that is looking at the 'dividend as a full-time income' plan - it's not a quick way to get rich. It's all about the slow growth of your money, like a tree that you nurture with paycheques instead of water.<br />
<br />
My goal progress increased by about .13% (from .61% to .739% of my goal of $1,000,000 dollars net worth).<br />
<br />
<br />
(This post summarized my current net worth in an easy to read table - It's a snapshot, so as unforeseen expenses or windfalls accrue in the month, this will become less relevant.)<br />
<span style="font-size: small;"><br />
</span><br />
<table border="2" cellspacing="0" style="width: 612px;"><tbody>
<tr valign="top"> <td bgcolor="#000000" height="12" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Net Assets</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Sept-15-11</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Sept-30-11</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Change</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>%</b></span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Emergency Fund<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 1,000.00</span></td> <td><span style="color: red; font-family: Arial; font-size: small;"> <span style="color: black;">$ 1,000.00<br />
</span></span></td> <td><span style="font-family: Arial; font-size: small;"> $ -<br />
</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Taxable Accounts<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -<br />
</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Taxable Brokerage Account</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">$ -</span> </td> <td><span style="font-family: Arial; font-size: small;">$ <br />
</span></td> <td><span style="font-size: small;"><span style="font-family: Arial;">0.00%</span></span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">TFSA Brokerage Account<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">5577.44</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 6872.44</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 1250.00</span></td> <td><span style="font-family: Arial; font-size: small;">18.18%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">RRSP Accounts </span></td> <td><span style="font-family: Arial; font-size: small;">$ 565.00<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 565.00</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Stock Options</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">ESPP</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">House</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Receivable (Payable)</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Other Assets</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Total Assets</span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial,Helvetica,sans-serif;">7142.44</span> </td> <td><span style="font-family: Arial,Helvetica,sans-serif;">$ 8392.44</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 1250.00</span></td> <td><span style="font-family: Arial; font-size: small;">17.50%</span></td> </tr>
<tr valign="top"> <td bgcolor="#000000" height="12" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Liabilities</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Credit Cards<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">Mortgage</span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Tax Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Other Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;">$ - </span> </td> <td><span style="font-family: Arial; font-size: small;">$ - </span> </td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Total Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td bgcolor="#c0c0c0" height="12"><span style="font-family: Arial; font-size: small;"> <span style="font-size: x-small;">Goal Progress ($1,000,000 CAD)</span></span><br />
<span style="font-family: Arial; font-size: x-small;">(Investments + House - Liabilities) </span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;">$</span><span style="font-size: small;"><span style="font-family: Arial;"> </span></span><span style="font-family: Arial; font-size: small;">6142.44</span><span style="font-family: Arial; font-size: small;"> </span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;"> $ 7392.44</span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;"> $ </span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;">0.739% </span><br />
<span style="font-family: Arial; font-size: small;">(Total)</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;"> Net Worth </span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">7142.94</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 8392.44</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ </span></td> <td><span style="font-family: Arial; font-size: small;">17.50%</span></td> </tr>
</tbody> </table><br />
<br />
(This chart is a modified version of Brien's 'Net Worth' chart from <a href="http://www.2millionblog.com/">www.2millionblog.com</a>. It is used with permission.)Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-50056180677177846672011-09-29T12:30:00.000-07:002011-09-29T12:30:00.598-07:00Should I keep my investments in Registered Accounts?I get asked this question alot from friends and family.<br />
<br />
Should you keep your investments in Registered accounts like TFSA or RRSP?<br />
<br />
<b>In a word, most often, <u><i>YES.</i></u></b> <br />
<br />
Do you make more then the <a href="http://www.blogger.com/">Personal Tax Exception</a> (~$10000) anually?<br />
If so, then you can make some use of the tax-avoiding plans and accounts that the <a href="http://www.cra-arc.gc.ca/menu-eng.html">Canadian Government</a> has made available to you.<br />
<br />
If you simply purchase company stock certificates, and hold them personally, without any broker, it's just you and the tax-man. All gains (capital gains or distributions) will be taxed directly, and you will have no choice or recourse. You will always be taxed twice (when you earn the money as income, then taxes on your gains and dividends).<br />
<br />
In a TFSA, you use income taxed money, but all gains in the 'account' are not taxed. This means you are taxed once (when you earn the money as income).<br />
<br />
In a RRSP, you use non-taxed money to contribute, then all gains in the 'account' are not taxed. You are taxed when you retrieve the money from the 'account'. You are only taxed once (when you withdraw the money from the account).<br />
<br />
In both types of registered accounts, you avoid double-taxation. This is almost always a good thing. To have equities (stocks, bonds, etc) in a registered account you need a broker.<br />
<br />
Okay now that we have some background, <b>Lets <i>crunch</i> some numbers!</b><br />
<br />
<br />
<span style="font-size: large;"><u><b>Non-Registered Account Example</b></u></span><br />
<br />
<table><tbody>
<tr> <td>Purchase of Telus (T) stock certificates: </td> <td>$5000</td></tr>
<tr> <td>Annual Dividend Yield </td> <td>4.2%</td> </tr>
<tr> <td>Annual Dividend</td> <td>$210</td> </tr>
<tr> <td>Dividend Taxes (40-80k tax bracket)</td> <td>~ $28 (13%)</td> </tr>
<tr> <td>Capital Gains Taxes (40-80k tax bracket) </td> <td>~ 11%</td> </tr>
</tbody></table><br />
Notice that the taxes paid on dividends are taking in to account the 'Dividend Tax Credit', which means that most Canadian company's dividends are not taxed at marginal rates (AKA normal income tax rates). But note that they are adjusted by a gross-up (38% in this example) for taxation purposes, as per the chart shown <a href="http://www.taxtips.ca/dtc/enhanceddtc.htm">here</a> for 2012. This means even though they are taxed at a lesser rate, the income is taxed as if it is 38% more then it actually is.<br />
<br />
So, while we don't get taxed anywhere near the normal ~22% marginal rate for the 40-80k tax bracket, we still get taxed. Remember that we are paying tax on our income (income tax), and also on the gains that are derived from that income (the dividend). This is essentially double-taxation.<br />
<br />
I dislike being taxed, so I am strongly against the idea of being taxed <i><b>twice</b></i><b>.</b><br />
<br />
Also, notice that we will be paying the tax on the dividend <b><i>every year</i></b> that we hold this investment.<b><br />
</b><br />
<br />
<b>There is no relief from double-taxation in non-registered accounts.</b><br />
<br />
Now, lets look at that same investment if we put it in a TFSA.<br />
<br />
<br />
<span style="font-size: large;"><u><b>TFSA Account Example </b></u></span><br />
<u><b><br />
</b></u><br />
<table><tbody>
<tr> <td>Purchase of Telus (T) stock </td> <td>$5000</td></tr>
<tr> <td>Annual Dividend Yield </td> <td>4.2%</td> </tr>
<tr> <td>Annual Dividend</td> <td>$210</td> </tr>
<tr> <td>Dividends Taxes (Any Tax Bracket)</td> <td>0%</td> </tr>
</tbody></table><br />
So, in a TFSA, which allows a annual contribution of at least $5000, we do not pay tax on our Canadian dividends or capital gains. The USA does not recognize the TFSA as a 'retirement' type of account so you will see large withholding tax penalties on US dividends & gains, which make it a bad idea to hold US assets in a TFSA.<br />
<br />
If you wish to take the money out of a TFSA, you do not get back your contribution room until the next year, that is January 1st.<br />
<br />
If you are saving away for something medium-term, this makes an ideal place to do it. If you're looking at some place to save for the long-term then you want to look at RRSPs.<br />
<br />
<br />
<span style="font-size: large;"><u><b>RRSP Account Example</b></u></span><br />
<br />
<table><tbody>
<tr> <td>Purchase of Telus (T) stock </td> <td>$5000</td></tr>
<tr> <td>Annual Dividend Yield </td> <td>4.2%</td> </tr>
<tr> <td>Annual Dividend</td> <td>$210</td> </tr>
<tr> <td>Dividends Taxes (Any Tax Bracket)</td> <td>0%</td> </tr>
</tbody></table><br />
<br />
In an RRSP, you do not pay tax on any dividends or capital gains from Canadian or USA sources. For USA sources, you do not pay withholding taxes either, making it a good place to put USA equities.<br />
<br />
Any funds put in a RRSP are tax-differed, so you do not pay tax on the contribution for the year that the contribution is claimed. So investing in an RRSP is a great way to avoid paying taxes in the higher tax brackets.<br />
<br />
The flip side of this is that you <i>do</i> pay taxes when you withdraw any amount from a RRSP, and you are penalized an additional percentage if you withdraw before you officially retire.<br />
<br />
This means that you must plan much further ahead with the RRSP - You will not be able to withdraw the money without penalties except for a few, specific situations (<a href="http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html">Home Buyers Plan</a> & <a href="http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/menu-eng.html">Lifelong Learning Plan</a>).<br />
<br />
When you take money out of an RRSP you do not get back your contribution room. Ever.<br />
<br />
<br />
I hope this helps clear up some of the confusion about where to invest your hard-earned cash.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-55436314942698578882011-09-28T12:13:00.000-07:002011-09-29T09:42:59.442-07:00Net Worth Update: September 15th, 2011So, this month, I dove in and bought some quality dividend stocks.<br />
If anyone tells you that your first trades are without worry and peril, they are lying :-P.<br />
<br />
I also rolled my taxable stock certificates into my TFSA - I was reading online about some of the records you have to keep for tax purposes when you have stocks in non-registered accounts, and I am honestly doubtful that I could keep up to date with such calculations.<br />
<br />
My goal progress increased by about .19% (from .42% to .61% of my goal of $1,000,000 dollars net worth), and my down-payment fund has been consumed by my TFSA brokerage account.<br />
<br />
I'll be making another net worth update in a few days on September 30th.<br />
<br />
(This post summarized my current net worth in an easy to read table - It's a snapshot, so as unforeseen expenses or windfalls accrue in the month, this will become less relevant.)<br />
<span style="font-size: small;"><br />
</span><br />
<table border="2" cellspacing="0" style="width: 612px;"><tbody>
<tr valign="top"> <td bgcolor="#000000" height="12" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Net Assets</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Aug-31-11</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Sept-15-11</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Change</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>%</b></span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Emergency Fund<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 1,000.00</span></td> <td><span style="color: red; font-family: Arial; font-size: small;"> <span style="color: black;">$ 1,000.00<br />
</span></span></td> <td><span style="font-family: Arial; font-size: small;"> $ -<br />
</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Taxable Accounts<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 3,000<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 0.00</span></td> <td><span style="font-family: Arial; font-size: small;"> $ (3,000.00)<br />
</span></td> <td><span style="font-family: Arial; font-size: small;">(100.00%)</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Taxable Brokerage </span></td> <td><span style="font-family: Arial; font-size: small;"> $ 665.94</span></td> <td><span style="font-family: Arial; font-size: small;">$ 0.00</span> </td> <td><span style="font-family: Arial; font-size: small;">$ (665.94)<br />
</span></td> <td><span style="font-family: Arial; font-size: small;">(100.00%)</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">TFSA Brokerage Account<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 5577.44</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 5577.44</span></td> <td><span style="font-family: Arial; font-size: small;"> +++%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">RRSP Accounts </span></td> <td><span style="font-family: Arial; font-size: small;">$ 565.00<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 565.00</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Stock Options</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">ESPP</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">House</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Receivable (Payable)</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Other Assets</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Total Assets</span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">5,230.94</span> </td> <td><span style="font-family: Arial,Helvetica,sans-serif;">$ 7142.44</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 1911.50</span></td> <td><span style="font-family: Arial; font-size: small;">36%</span></td> </tr>
<tr valign="top"> <td bgcolor="#000000" height="12" style="background-color: #ccffff; color: black;"><span style="font-family: Arial; font-size: small;"><b>Liabilities</b></span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> <td bgcolor="#000000" style="background-color: #ccffff; color: black;"><span style="font-size: small;"><br />
</span><br />
<span style="font-size: small;"><br />
</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Credit Cards<br />
</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">Mortgage</span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">$ - </span></td> <td style="vertical-align: top;"><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Tax Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Other Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;">$ - </span> </td> <td><span style="font-family: Arial; font-size: small;">$ - </span> </td> <td><span style="font-family: Arial; font-size: small;"> $ - </span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span> </td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;">Total Liabilities</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;"> $ -</span></td> <td><span style="font-family: Arial; font-size: small;">0.00%</span></td> </tr>
<tr valign="top"> <td bgcolor="#c0c0c0" height="12"><span style="font-family: Arial; font-size: small;"> <span style="font-size: x-small;">Goal Progress ($1,000,000 CAD)</span></span><br />
<span style="font-family: Arial; font-size: x-small;">(Investments + House - Liabilities) </span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;">$</span><span style="font-size: small;"><span style="font-family: Arial;"> </span></span><span style="font-family: Arial; font-size: small;">4,230.94 </span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;"> $ 6142.44</span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">1911.50</span></td> <td bgcolor="#c0c0c0"><span style="font-family: Arial; font-size: small;">0.61% </span><br />
<span style="font-family: Arial; font-size: small;">(Total)</span></td> </tr>
<tr valign="top"> <td height="12"><span style="font-family: Arial; font-size: small;"> Net Worth </span></td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">5,230.94</span></td> <td><span style="font-family: Arial; font-size: small;"> $ 7142.94</span> </td> <td><span style="font-family: Arial; font-size: small;"> $ </span><span style="font-family: Arial; font-size: small;">1911.50</span></td> <td><span style="font-family: Arial; font-size: small;">36%</span></td> </tr>
</tbody> </table><br />
<br />
(This chart is a modified version of Brien's 'Net Worth' chart from <a href="http://www.2millionblog.com/">www.2millionblog.com</a>. It is used with permission.)Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-89210250889357548992011-09-27T15:29:00.000-07:002011-09-27T15:29:34.032-07:00Being made fun of for being frugalNow, we have all been peer-pressured into buying something.<br />
And when we say 'No, I'd rather not spend $100 on monster truck show tickets', our 'friends' retort:<br />
<br />
<i>"You're no fun!"</i><br />
<br />
<i>"You're too cheap!"</i><br />
<br />
<i>"You don't have a life!"</i><br />
<br />
<br />
<br />
<span style="font-size: large;"><b>You're right, Jack! All my friends bug me and act like I'm a <i>frugal fool!</i></b></span><br />
<br />
It's happened to me too. Both of us know the pain of being ridiculed. So what can we do about this socioeconomic menace?<br />
<br />
<br />
<b>1) Try telling them the truth:</b><br />
<br />
Tell them that that $100 is the water for your wealth-tree, with karma fueling it's ever-present upward climb...<br />
<br />
Or, you could tell them that that $100 will let you retire 1 or 2 days earlier, while they are still slaving away at the 9 to 5.<br />
<br />
Or maybe that $100 will be the last straw in the haystack that allows your future child to seek out the higher education that they always wanted.<br />
<br />
<br />
<b>2) Try telling them a lie:</b><br />
<br />
Tell them that $100 is going to quintuple in the next 3 weeks, and you will be an overnight millionaire.<br />
<br />
Tell them that you have to get an ass-transplant, and $100 is the last step towards the rear you've always wanted.<br />
<br />
<br />
<b>3) Ignore their idle financial prattle: </b><br />
<br />
This is probably the most difficult, and effective tactic. It's a proven fact that friends poke fun because they want to get a reaction. By ignoring them, you rob them of the payoff of the activity.<br />
<br />
No reaction --> No reward<br />
<br />
<br />
<b>4) Show them your 5 page asset sheet, complete with lots of very large numbers:</b><br />
<br />
... And watch them stammer as they wobble away to their fully-leveraged car and mortgaged-up-to-the-hilt condo.<br />
<br />
I like this option BEST.<br />
<br />
I thoroughly ENJOY the look on people's faces when they come to the realization that saving and investing soundly will beat the pants off of spending like you're going to die tommorrow.<br />
<br />
I guess I'm sort of a jerk that way :-P.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Jack, they won't stop bugging me about being frugal, no matter what I do!</b></span><br />
<br />
Well, you can always get new friends.<br />
<br />
In-fact, go to <a href="http://www.meetup.com/">www.meetup.com</a>, and you can find lots of groups nearby you that share your interests, <i>including being frugal</i>.<br />
<br />
It's nearly always free to go to meetings, and the people you find there can be incredibly supportive; after-all, they have probably been in the same situation as you!Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-24086270167413953652011-09-26T09:39:00.000-07:002011-09-26T09:39:45.812-07:00An unofficial break Well, I am back.<br />
<br />
I hadn't posted anything for nearly 2 weeks.<br />
<br />
As with almost every other blog writer that 'lapses' on his or her duties, I will blame life, and it's infinite complexity.<br />
<br />
<br />
<span style="font-size: large;"><b>What kept you so busy?</b></span><br />
<br />
I have enrolled in a welding course, occurring on the weekends, and it is definitely a physically demanding task. I come back from the classes absolutely spent.<br />
<br />
I have also started 'investing'!<br />
<br />
I have put my money where my mouth is, and started buying quality dividend stocks. Between the 'stress' of a full-time job, and my welding course, and my investing on my off hours, I've been very tired. Add to that then I am starting to fit in some time at the gym, and still keep up with my writing group meetings (and actually contribute something)...<br />
<br />
I am just exhausted all the time :P.<br />
<br />
<br />
<span style="font-size: large;"><b>Why do you do so much work, Jack? You're wasting your life (and youth) away!</b></span><br />
<br />
That's a very good point.<br />
<br />
Should I really be doing all these activities?<br />
Shouldn't I stop and smell the roses and all that?<br />
<br />
Well, I like to think that I work hard early in my life, and try and fit in as much 'stuff' as possible, and then later in life, when money isn't as much of an issue, and I have more important things to worry about (like raising children), then I will start easing off on the 'stuff'.<br />
<br />
We'll see how well all that goes. I'm thinking I'm wearing rose coloured glasses a bit there, instead of smelling roses.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-23370497993380879882011-09-14T10:08:00.000-07:002011-09-14T10:08:39.841-07:00A Tough Week, A Demanding Boss, & A Loss.Well,<br />
<br />
Jack's been having one hell of a week so far.<br />
<br />
<br />
<span style="font-size: large;">Monday</span> <br />
One of our oldest cats had been laying on the floor, in pain obviously. I petted him a bit before the girlfriend took him to the vet, and I left for work. I received a text message an hour later that he 'had' cancer. It wasn't even said that they put him down. I miss him <i>immensely</i>.<br />
<br />
I felt awful at work. It was one of those day that just make you want to walk out the door, telling you boss that he needs to get the hell out of your way. And that every single customer that calls your phone is going to get sub-par service, even if you don't mean to take it out on them.<br />
<br />
I went to my folks, and had a light dinner. I wasn't hungry. We talked about things, idle chatter, really, and it helped me feel a little better.<br />
<br />
<br />
<span style="font-size: large;">Tuesday</span> <br />
Labour work day, taking boxes up and downstairs. Frantic rushing to get orders done, working with parts that are flimsy and prone to break. Using tools purchased for price and not functionality.<br />
<br />
I finally got the order done, a small prize in an otherwise agrivating day.<br />
<br />
<br />
<span style="font-size: large;">Wednesday</span> <br />
First thing, my boss comes down to tell me that I am not charging our customers enough for service calls. "Anything over 5 minutes is a $200 yearly contract!".<br />
<br />
The products they call for support on are worth less then $500. Who in their right mind is going to pay almost half the cost of a product for support! They'll just buy a new one - from our competitors.<br />
<br />
*shakes head*<br />
<br />
<br />
<span style="font-size: large;">On a lighter note</span>,<br />
I read '<a href="http://en.wikipedia.org/wiki/The_Richest_Man_in_Babylon_%28book%29">The Richest man in Babylon</a>' yesterday. It's quite a good (abet short) book about nuts and bolts financial success in ancient times. I liked the characters, and the morals are all pretty decent. I sometimes found the language difficult to decipher, and it would often get in the way of my understanding the events correctly. I would still recommend it, though.<br />
<br />
I'm also reading "<a href="http://en.wikipedia.org/wiki/The_Wealthy_Barber">The Wealthy Barber</a>" at the moment. I would likely agree with the general 'internet consensus' that it's required reading for those beginning in personal finance (or anyone over the age of 10).<br />
<br />
It's books like these that can really provide some clear, easy-to-understand insight into personal finance. I would wholeheartedly recommend that anyone, and everyone, pick them up at the library or inexpensively online.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-62690209240600819932011-09-11T13:54:00.000-07:002011-09-11T13:54:00.535-07:00My current review of Crudential DirectI'd like to take some time today to share my experience so far with Credential Direct.<br />
<br />
<br />
<br />
<span style="font-size: large;"><b>Why did you want a brokerage account, Jack? They steal your money with fees and commissions!</b></span><br />
<br />
Well, a month or so ago in my 'investor infancy', I didn't believe I needed any broker at all.<br />
<br />
They would just level heavy commissions on me, and <i>drag down my profits</i>!<br />
<br />
I was going to invest in Canadian Dividend stocks, buying directly from other investors that held physical certificates, and use Drips (Dividend ReInvestment Plans) and OCP's (Optional Cash Purchases) to get more stock.<br />
<br />
Then I started looking at the forecast down the road for dividends, and how they are likely going to be taxed more and more as time goes on. Then I looked at the long term tax benefits that my investments would enjoy in a TFSA or an RRSP.<br />
<br />
I'm putting together a post that crunches some numbers on how your long-term gains can be crippled with taxes in non-registered accounts, but you'll have to take my word for it at the moment.<br />
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<div style="color: red;"><span style="font-size: small;">Long-term investments are often best kept in tax-advantaged accounts, which you currently <i>cannot </i>have without a broker!</span></div><br />
<span style="font-size: small;">So, you have to have a broker to take 'advantage' of tax-advantaged accounts!</span><br />
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<span style="font-size: large;"><b>Why go with Credential Direct? Why not Questrade, with it's $5 commissions? TELL ME, JACK!</b></span><br />
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Frankly, I don't like alot of the reviews of Questrade. They make the entire service sound like crap. Too many people that sound pretty pissed off at bad customer service, lost money, delayed trades, and disappearing dividends.<br />
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I'm a tough mofo, but when it comes to my money, I want to know the people 'looking after' it are competent, and answer the phone when I call. So far, with Credential Direct, that seems to be the case.<br />
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My longest wait on hold so far has been 1 minute. After that, I was able to monopolize an account services gentleman for nearly 20 minutes, as he carefully and calmly answered my questions.<br />
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Plus, I have share certificates to deposit. <i>Credential Direct takes deposits of share certificates for FREE.</i> This is compared to $200 each for Questrade. Bloody ouch, indeed.<br />
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In-fact, the gentleman I spoke with said if I was in the area (Downtown Vancouver, B.C.), I could drop the certificates off<i> directly </i>at their mail-room, and save myself the courier fees. That's smart of him to offer, and likely a good idea, considering courier fees.<br />
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The only negative so far with Credential is the fact that they do not have or allow any sort of USD or USD 'money market' holdings in RRSP accounts. Questrade current offers this, and so far, this has been my only issue with Credential Direct. I have spoke with their customer support about this, and asked for it three (3) separate times to three (3) different people, so hopefully they get the picture that it is a big deal to me.<br />
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<span style="font-size: large;"><b>I don't like Credential Direct. They stole all my money.</b><span style="font-size: small;"> </span></span><br />
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<span style="font-size: large;"><span style="font-size: small;">I'm honestly sorry for you.</span><b> </b></span>As far as I can tell, they appear to be a decent, reputable company, charging a decent cost for a decent service.<br />
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I would strongly suggest that you call them, and ask why you lost money. They do have 'investment coverage' on deposits, much like banks and credit unions have coverage. So if you money was in your brokerage account, and disappeared, I believe it's covered under that insurance.<br />
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If you were a stinker and just lost your money on a bad investment, then I would suggest speaking with a fee-based financial advisor. They may be able to put you back on the right path.<br />
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<span style="font-size: large;"><b>A decent service for a decent price.</b></span><br />
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At this point, having just made my account, and speaking with their support staff quite a bit, I can feel strongly that Credential Direct is a decent company, with good customer service. They do have fairly costly trades ($20 for < 10 trades per 3 months), and no USD in RRSP accounts, but the fact that they seem to be decent people, offering a decent service, helps me sleep at night.<br />
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I would recommend Credential Direct to anyone that is looking for a smaller, less expensive brokerage then say TD Waterhouse, but still wants good customer service. If they pull down their trade fees to $14.95 or $9.95, <i>and</i> add USD holding capabilities to their RRSP accounts, then I would whole-heartily recommend them to anyone.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-63263231716634343822011-09-10T10:11:00.000-07:002011-09-10T10:11:00.512-07:00What is the Dividend 15 split, and how does it work? Pt.4Yesterday, I talked about the 'Dividend 15', and how I believe they speculate dividends to make the unusually large yields they offer.<br />
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Today, I'll talk about some of the reasons I would not invest in the 'Dividend 15' personally.<br />
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<b>Jack, why wouldn't you invest in the Dividend 15! it's a 10% yield!</b><br />
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I'll tell you.<br />
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<b><i>1) Fees.</i></b><br />
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The 'Dividend 15' is a mutual fund. Mutual funds have fees. I dislike fees alot.<br />
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That ~10% yield is eaten up by the following:<br />
0.1% - Manager Administration Fee<br />
0.5% - Manager Service Fee<br />
0.65% - Investment Company Fee<br />
(20% of all profits over a 12% annual increase if NAV >$25) - Fee for good performance <br />
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This means that essentially, our yield becomes ~8.8%, which is still pretty excellent. But the icing on this cake is still rancid.<br />
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<b>2) Split investment funds are dangerous</b><br />
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I have been reading alot about 'splits' like 'Dividend 15', and how they aren't paying out dividends so much as paying out capital from new investors to old - Much like a <a href="http://en.wikipedia.org/wiki/Ponzi_scheme">Ponzi scheme.</a><br />
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Some more people rightly concerned about such investments <a href="http://www.canadianmoneyforum.com/showthread.php?t=2416">here</a>.<br />
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<b>3) No Special dividends for the jumper.</b><br />
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When you jump around to garner dividends, you will nearly always miss out on any special dividends that are paid. These dividends are not scheduled, so you cannot time them like regular dividend payments. And special dividends are very often generous, skewing the yearly yield upwards quite a bit.<br />
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<b>4) I can speculate for myself, thanks.</b><br />
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If I was feeling like speculating, I'd rather do it myself. Plus, in all honesty, I don't feel like jumping around with such companies. I'd rather they hold my money and pay me well, for a long time. Call it a bit of foolish faith.<br />
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<b>Ok Jack, I get it - If it's probably too good to be true, it probably is.</b><br />
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<i>Damn right.</i><b> </b>Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-23204400424681458952011-09-09T09:35:00.000-07:002011-09-09T09:35:00.875-07:00What is the Dividend 15 split, and how does it work? Pt.3Yesterday, I talked about one way the 'dividend 15' may generate the very high 10% yields that they offer.<br />
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Today, lets look at how a 'dividend smash-and-grab' method would worth, if we calculated with real money.<br />
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I will continue to work with BNS (Bank of Nova Scotia) because, gosh-darn, they just work so well with this strategy (as many of the other stocks that the 'Dividend 15' say they invest in).<br />
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For example, BNS yields dividends quarterly. At the current yield they are at 4% for the year, so approx 1% per quarter. This is a decent yield, especially for a Canadian Bank, which many believe to be essentially bullet-proof.<br />
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The most recent dividend was July 27, with an Ex-dividend date of July 5. This means that you only had to hold the stock for ~3 weeks to get a 1% return. Not bad at all.<br />
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<b>Wow Jack, 1% in a month? Count me in!</b><br />
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You and me both. <br />
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Say you were a stock fund manager. You had a number of big companies all paying an average 4% yield, quarterly. You only had to hold the stock for a month (the ex-dividend date) to get the sweet dividend.<br />
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If you moved the money around, jumping from dividend to dividend, you could do pretty good, right?<br />
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There are 12 months in a year, and even if you could only effectively get 11 of these yields, you would average about 11%, minus commissions and trading fees.<br />
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This is actually not that far from what 'Dividend 15' yields out.<br />
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<b>So can I dividend speculate with $1000?</b><br />
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In short, <i>No.</i><br />
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But maybe you could try with $10000.<i> </i><br />
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Lets say we wanted to speculate BNS's dividend.<br />
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1) We invest $10000 in BNS, buying about 192 shares at $52/share <i>before</i> the ex-dividend date.<br />
2) We wait the 3 weeks, and receive a dividend deposit of ~$100 in our brokerage account.<br />
3) We immediately sell the stock, netting approximately the same value back (lets assume it was a smooth-market month, and the dividend depreciation was negligible.)<br />
4) We now add up our booty:<br />
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Commissions & Trading Fees (for Credential Direct): ~($40)<br />
Profit from Dividend: ~$100<br />
Total: ~$60.<br />
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So, you profited about $60 on $10,000, or 0.6% for a month. Not too shabby.<br />
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If you were to invest $1000, you would have netted ~($30), and only made out with ~$9970 of your initial investment.<br />
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<b>So if I speculate Dividends I can make 11% a year?</b><br />
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Still a <i>No.</i><br />
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This assumes that the stock will have exactly the same value on the purchase and the sale. I can almost guarantee this <i>would not happen. </i><br />
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Yes, it may make money due to unrelated capital gains, but since dividends are paid directly from the market value of a stock, it's unlikely that you'll make back exactly the same value as before.<br />
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Tomorrow, I'll talk about why I wouldn't invest in the 'Dividend 15'.Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0tag:blogger.com,1999:blog-6738695494242364085.post-23296319401380231602011-09-08T09:14:00.000-07:002011-09-08T11:11:06.410-07:00What is the Dividend 15 split, and how does it work? Pt.2Yesterday, I was looking at the basic stocks that compose the 'dividend 15' fund.<br />
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Today, I'll look at how the fund is able to generate such a high-yield.<br />
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The dividend split is yielding over 10%. In most cases (and maybe even in this case) this should send alarm bells off. Such a high dividend yield means that the organization paying this yield is forking over 10% of it's market value <i>every year</i>.<br />
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By giving away so much, they have less and less available to invest in the organization.<br />
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<b>Jack, I'm looking that these companies (all the banks especially). They only provide 3-5% dividends. How does the 'dividend 15 split' yield over 10%?</b><br />
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I am not the fund manager for the dividend 15, so I can't tell you for sure, but there is a good chance that they are doing some active trading of these stocks behind the scenes.<br />
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You see, in order to qualify for a dividend, you simply have to own the stock before the ex-dividend date. Think of it as a sort of 'dividend deadline'. If you own it after that, then you don't 'qualify' for upcoming dividend.<br />
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I have a strong suspicion that the dividend 15 is actually speculating the dividends of these stocks. Another thing that tipped me off was the fact that they say right on the website <span style="font-size: small;">"<i>Shares held within the Portfolio are expected to range between 4-8% in weight but may vary from time to time."</i></span><br />
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This means that they are usually going to have money in these stocks, but really, they may not have any, and they don't have to tell you when or why they are buying or selling. Mega alarm-bells in my head go off.<br />
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Let me show you how they may do it, step-by-step.<br />
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1) D15 (Dividend 15) watches the ex-dividend dates for a strong dividend stock like BNS (Bank of Nova Scotia).<br />
2) They invest a large amount at the last minute of the ex-dividend date for the upcoming dividend.<br />
3) They collect the dividend, and immediately sell.<br />
4) Notice that since BNS is such a large stock, it's dividend devaluation is minimal, so they don't lose much in the 'dividend smash and grab'.<br />
5) They repeat this process with another companies' ex-dividend date and dividend.<br />
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<b>Jack! You've hit a gold-mine! I'm going to speculate dividend stocks too!</b><br />
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Hold on there - This strategy only works if you have a big ol' heap of money, like $10,000+.<br />
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How do I know it's only good for the big guys? Easy. <i>I worked out the numbers.</i><br />
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Tomorrow, I'll look at one of the ways I believe the 'Dividend 15' makes it high yields - through a little 'dividend smash and grab'!Earning Jackhttp://www.blogger.com/profile/12241869370519697590noreply@blogger.com0