Fiscal Update – Apr 2012

If you work in the financial services industry then April was probably a busy month for you because this is when taxes are due. According to a recent survey by BMO Nesbitt Burns, many people are unaware of the tax implications of investment income. The poll of 1,500 Canadians, conducted by Leger Marketing, showed that 58% do not know how capital gains are taxed, and 63% do not know how dividend income is taxed. This is surprisingly low to me. Does that mean 37% of people know that the maximum tax rate on their non-eligible dividends is about 33% if they live in Ontario? Even I had to look that up.

With Europe’s fiscal situation still uncertain, China’s growth slowing down and a mix of other good and bad economic news from the US and around the world, our Canadian stocks stayed pretty much flat in April.

*Side Income:
  • Part-Time Work = $900
  • Dividends = $500

*Discretionary Spending:

  • Eating Out = $0
  • Others = $0

*Net Worth: (MoM)

  • Assets:
  • Cash = $3,000 (-$900)
  • Stocks = $69,700 (-$500)
  • RRSP = $21,700 (Unch)
  • Home  = $248,000
  • Liabilities:
  • Mortgage = $207,200 (-$300)
  • Margin Loan = $18,700 (Unch)
  • Bank Loans = $400 (-$2,200)

*Total Net Worth = $116,100 (+0.96%

I am back in the black. But not by much. The extra money I made from my second job and the savings from my no spend challenge were pretty much wiped out by a special levy, lol.  More details on that later this month. I didn’t make any new investments in April, however I deposited some money into my brokerage account because I’m anticipating to buy some stocks for my buy and hold portfolio soon. I don’t believe in the saying “sell in May and go away,” because perhaps buying when others are selling might not be a bad idea. I’m not sure yet. Just waiting on the sidelines for now.

* Numbers are rounded to the nearest $100.

 

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Steve@The Loonie Bin
Steve@The Loonie Bin
05/03/2012 7:06 pm

Ahh special levies, I do not miss living in a condo one bit! Congrats on being back in the black as well. I too am waiting to add to my portfolio but I’m not sure which stock to nab.

Liquid
Admin
05/04/2012 5:55 am

So many good companies to choose from. I may add more of the same stocks I have already.

MyMoneyDesign
05/04/2012 4:26 pm

That’s a hella-lot in dividends to take in one month. What is the dividend yield of your portfolio?

Liquid
Admin
05/08/2012 11:24 pm
Reply to  MyMoneyDesign

My non-registered portfolio is yielding about 3.8% right now. I usually try to keep it above 4% but I’ve been buying a lot of growth stocks recently with low or even no dividends.

TB at BlueCollarWorkman
TB at BlueCollarWorkman
05/06/2012 4:18 pm

Welll look at that net worth! Way to go!!

Liquid
Admin
05/08/2012 11:26 pm

Thanks, just taking it one step at a time.

Financial Samurai
05/10/2012 12:08 pm

I like that part-time $900 income! What was that for, or did I miss it?

Love these Net Worth charts! Rocket ships!

Liquid
Admin
05/10/2012 12:13 pm

Thanks, my part-time money is was from teaching and tutoring at a couple of different private colleges.