Another month has come and gone and time to an update of my portfolio.
I made one investment directly though the transfer agent. I purchased 1.752 shares @ $42.80 for a total of $75.00. When dealing with the transfer agent in most cases there is no commission.
I also DRIP a few stocks and acquired a few more shares though this avenue.
- 6 shares of Just Energy (JE.TO) @ $6.64
- 2 shares of Enerplus (ERF.TO) @ $17.38
- 0.037 shares of Enbridge (ENB.TO) @41.94
I have updated my investment tab spread sheet.
DISCLAIMER:
Thursday, October 3, 2013
Sunday, September 22, 2013
Why be an Investor?
As the years go by more and more companies are getting rid of their defined benefit plans. This is because they are a big liability for them. A defined benefit plan means a guaranteed pension income from the same company you work for until your death indexed to inflation. The 2 most dependable defined benefit plans are for government employees and military personnel. To replace these plans, new retirement plans came out which were defined contribution plans?
What are defined contribution plans?
A defined contribution plan is where the individual is responsible for their own retirement. An employer might match a percentage of your salary up to a given percentage ( which is basically free money). With a defined contribution plan there is no guarantee of your investment gaining in value. For example, if you are about to retire and there is a big stock market crash then the value of your portfolio could be drastically reduced.
The 2 common defined contribution plans in North America are the RRSP ( Canadian) and 401k (US). These are basically tax deferral plans, in which you investments grow tax free, until you go take the money out. An added benefit of investing in these plans you can claim a tax deduction for your contributions against the your taxable income at tax time. The higher your tax bracket, the greater percentage of the tax deduction that you are eligible for.
An individual can invest in various investment vehicles inside the registered savings plan such as stocks, bonds and mutual funds.
What happens if you take money out of your plan early? When you take money out early, you are penalized and plus come tax time you are taxed at your marginal tax rate. At a previous employer, there was a GROUP RRSP plan. When I left there, a few months late I called the place that the company has it GROUP RRSP through. They told me I can switch it too an individual plan. I decided to cash it out has it was small. I was penalized right away at 10% of the balance right away and then taxed at my marginal rate at tax time.
Currently, I am not investing in an RRSP as I would like to escape the rat race early in life. Currently, I invest in a non-registered account and a TFSA.
So, why be an investor?
Today, more and more people are responsible for their own retirement!!! Individuals can make better investment decisions by learning how to read financial statements and increasing their financial education. Individuals can read financial information from reports published by companies, the investor relations section of a company's website or various financial websites. If an investor is not comfortable investing on their own, they can still use a financial planner or broker.
DISCLAIMER:
What are defined contribution plans?
A defined contribution plan is where the individual is responsible for their own retirement. An employer might match a percentage of your salary up to a given percentage ( which is basically free money). With a defined contribution plan there is no guarantee of your investment gaining in value. For example, if you are about to retire and there is a big stock market crash then the value of your portfolio could be drastically reduced.
The 2 common defined contribution plans in North America are the RRSP ( Canadian) and 401k (US). These are basically tax deferral plans, in which you investments grow tax free, until you go take the money out. An added benefit of investing in these plans you can claim a tax deduction for your contributions against the your taxable income at tax time. The higher your tax bracket, the greater percentage of the tax deduction that you are eligible for.
An individual can invest in various investment vehicles inside the registered savings plan such as stocks, bonds and mutual funds.
What happens if you take money out of your plan early? When you take money out early, you are penalized and plus come tax time you are taxed at your marginal tax rate. At a previous employer, there was a GROUP RRSP plan. When I left there, a few months late I called the place that the company has it GROUP RRSP through. They told me I can switch it too an individual plan. I decided to cash it out has it was small. I was penalized right away at 10% of the balance right away and then taxed at my marginal rate at tax time.
Currently, I am not investing in an RRSP as I would like to escape the rat race early in life. Currently, I invest in a non-registered account and a TFSA.
So, why be an investor?
Today, more and more people are responsible for their own retirement!!! Individuals can make better investment decisions by learning how to read financial statements and increasing their financial education. Individuals can read financial information from reports published by companies, the investor relations section of a company's website or various financial websites. If an investor is not comfortable investing on their own, they can still use a financial planner or broker.
DISCLAIMER:
Wednesday, September 18, 2013
Watching Your Account Balance
At the end of last month, I received a dividend from one of my stocks called Just Energy. This stock gets dripped inside my brokerage account. I looked at my account activity and notice it was not right. My account said that I received the correct amount of dividends that I was expected to receive for that dividend payment.
So what went wrong ?
So the stock has the DRIP turned on and I have enough to acquire a whole share. My account activity states I receive 6 shares @ $6.45 for a cost basis of $36.75. I noticed this right away and contacted my broker ASAP through e-mail. I told my broker that either the $6.45 was wrong or the $36.75 was wrong and one of their employees said they think the stock trades in US dollars. I have owned this stock for a year and a half at least. I told them that I purchased the stock in Canada on the TSX. I told the stock in Canada trades in CDN dollars and the listing on the NYSE (New York ) trades in US dollars.
Towards the end of the e-mail they suggested on contacted Just Energy to find out which currency they trade in. I then contact Just Energy Investor Relations and ask them to clarify what currency the stock trades on the TSX and the NYSE.. They replied " The stock in Canada on the TSX trades in Canadian Dollars and the stock trades in US dollars on the NYSE. The dividends are paid in Canadian Dollars for both the Canadian listing and the US listing"
I then contacted my broker through e-mail and attached a copy of the e-mail from JE investor relations. My broker then admitted that they made a mistake and used US currency.
What to learn from this ?
As an investor you need to know the following:
Disclosure: I currently still own JE
DISCLAIMER:
So what went wrong ?
So the stock has the DRIP turned on and I have enough to acquire a whole share. My account activity states I receive 6 shares @ $6.45 for a cost basis of $36.75. I noticed this right away and contacted my broker ASAP through e-mail. I told my broker that either the $6.45 was wrong or the $36.75 was wrong and one of their employees said they think the stock trades in US dollars. I have owned this stock for a year and a half at least. I told them that I purchased the stock in Canada on the TSX. I told the stock in Canada trades in CDN dollars and the listing on the NYSE (New York ) trades in US dollars.
Towards the end of the e-mail they suggested on contacted Just Energy to find out which currency they trade in. I then contact Just Energy Investor Relations and ask them to clarify what currency the stock trades on the TSX and the NYSE.. They replied " The stock in Canada on the TSX trades in Canadian Dollars and the stock trades in US dollars on the NYSE. The dividends are paid in Canadian Dollars for both the Canadian listing and the US listing"
I then contacted my broker through e-mail and attached a copy of the e-mail from JE investor relations. My broker then admitted that they made a mistake and used US currency.
What to learn from this ?
As an investor you need to know the following:
- When your dividend payment dates are roughly
- What currency you dividends are being paid
- What currency you stock trades in
- Monitor activity in your account.
- If dripping, if your cost basis makes sense according to your number of new shares and the reinvestment price.
Disclosure: I currently still own JE
DISCLAIMER:
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