I transferred my pension from my previous employer to my personal investment account. The amount is about $20,000, which I currently hold in my TD RRSP as cash. This money exists because I saved 4% of my income and put it towards the company RRSP group plan for 7 years. It’s not a huge amount of money but if I invest all of it into something that can generate 5% return per year, I would earn $1,000 of tax deferred passive income without touching the principal. 🙂 I also have a Deferred Profit Sharing Plan (DPSP) that is awaiting to get paid out as well. But I’m not sure when I will receive that yet. It’s not as much as the RRSP amount though.
Liquid’s Financial Update
*Total Income: = $7,300
- Full time job = $4000
- Part time job = $1400
- Freelance = $500
- Dividends = $1000
- Interest = $400
- Food = $300
- Housing = $1200
- Utilities = $100
- Miscellaneous = $1100
- Additional Debt Interest = $900
*Net Worth: (ΔMoM)
- Assets: = $1,222,500 total (+17,500)
- Cash = $10,500 (-2000)
- Canadian stocks = $173,600 (-1500)
- U.S. stocks = $117,800 (-1700)
- U.K. stocks = $22,200 (-200)
- Retirement = $113,200 (+21,900)
- Mortgage Funds = $33,300 (+700)
- P2P Lending = $31,900 (+300)
- Home = $275,000
- Farms = $445,000
- Debts: = $433,400 total (-2,500)
- Mortgage = $192,500
- Farm Loans = $182,900 (-500)
- Margin Loans = $51,000
- TD Line of Credit = $2,000 (-1000)
- CIBC Line of Credit = $5,000 (-1000)
*Total Net Worth = $789,100 (+$20,000 / +2.6%)
All numbers are in $CDN.
I will be looking at how to invest the extra $20K. Maybe I will buy some U.S. dividend stocks. The Bank of Canada is also expected to raise interest rates later this week. It’s about time. If the cost to borrow money remains at current levels then in 5 years from now home prices in large cities would likely be 25% higher than today. Higher interest rates will help keep inflation tame so home prices don’t climb too much.
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Random Useless Fact:
It’s hard for attractive nurses to take accurate pulse readings.
Hey Liquid,
The pension payout helped you stay in green 🙂
Do you have any plan to sell one or both of your farmlands? You will be debt free if you do so.
Best Regards,
I might sell it next year depending on how hot the real estate market is. 🙂
Wouldn’t US withhold taxes on dividends when Canadians purchase US equities?
Usually yes. But if you hold most U.S. stocks within an RRSP there is no US withholding tax on dividends.
Love these updates. Awesome to see your progress and super motivating to me as well. Keep it up!
Thanks. I’ll post a new update soon for the month of July. Not much has changed though.