You are viewing agoodwinsmith

Drat this working for a living all to heck.

May. 27th, 2015

12:38 am - Rocky Frisco - RIP

For those of you who may not yet have heard, Rocky Frisco passed away yesterday:
http://www.newson6.com/story/29162600/tulsa-music-legend-rocky-frisco-dead-at-77


Tags:

May. 3rd, 2015

01:35 pm - So. Then bank interest dropped below one percent.

In Canada, there is a thing called the TFSA:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/menu-eng.html

Any Canadian Citizen (& probably Permanent Resident) who is 18 years of age or older may put a portion of their after-tax money into it, and then any interest or dividends or capital gains it makes are not taxable.  It started in 2009, and the amount has changed each year, as follows:
2009 = $05,000.00
2010 = $05,000.00
2011 = $05,000.00
2012 = $05,000.00
2013 = $05,500.00
2014 = $05,500.00
2015 = $10,000.00
total to date = $41,000.00

Saving that much each year is a bit tricky at my economic level, but one doesn't have to submit the whole amount to be allowed to participate.

For many years we have had RRSPs:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/rrsps-eng.html
which allows one to put pre-tax money in, based on a percentage of one's income, and reduce one's taxable income in the year of contribution.  If one's income is large enough that some of it is taxed at a higher rate, this can be doubly attractive because the theory is that one's income will be reduced in retirement, and one will pay less tax.  Yes, the advantage is meant to be less tax now and less tax later.  However, tax rates continue to go up, and one will need at least as much income in retirement as prior, if not more, because one's unit of currency buys less as one ages (See Smarties story http://agoodwinsmith.livejournal.com/161877.html).  Also - everything coming out of the RRSP, including interest, dividends, earning, and so on, is taxable.

Current advice is that, the older one is, the more one should favour contributing to one's TFSA over one's RSSP.  Those with pots of income should do both.

The problem is that TFSAs at banks pay pitiful interest, and the higher paying options lock up the money for years at a time, so if one experiences a crisis prior to the end of the term, one loses all the gains made to that point.  So I have known for a while that, while the TFSA is where to grow one's equity, I had no idea how to do it.  Yay internet.

I started by reading about Warren Buffet, who, whatever else is true, has amassed a rather large fortune through stocks. Value Investing sounds good, as does buying stocks in consumer consumables that people want whether times are good or bad, but I realized that I have neither the time nor inclination to hover over an exchange ouija board buying and selling and buying again in a fever of fear.

So, next I stumbled across this:
http://retiredat48book.blogspot.ca/p/where-to-buy.html
and bought the book, which led me to this:
http://www.chapters.indigo.ca/en-ca/books/dividend-stocks-for-dummies/9780470466018-item.html?ikwid=Dividend+stocks+for+dummies&ikwsec=Home&ikwidx=0
and this in paper because the above is USAian:
http://www.chapters.indigo.ca/en-ca/books/investing-for-canadians-for-dummies/9780470676264-item.html?ikwid=investing+for+Canadian+dummies&ikwsec=Books&ikwidx=6

So, since the dividend book teaches one how evaluate the financial reports produced by companies, I selected a company to follow through the very scientific method of seeing a press release in my http://academica.ca/topten newletter.  I read the financials - and didn't understand them at all.  Based on my plugging the numbers into the appropriate formulas my company was on its last legs and should be spurned as beneath my contempt. But my company had just felt strong enough to give a hefty donation to a research school, so I suspected I was not finding the correct numbers for the formulas.

So, then I started reading anything and everything about Canadian dividend companies (my favourite blog is no longer available), and I started watching various stocks.  Then I went to reddit http://www.reddit.com/r/PersonalFinanceCanada/ which led me to http://www.greaterfool.ca/ , and eventually to this post: http://www.greaterfool.ca/2014/11/21/trust-4/ , and then I started tracking some ETFs.

So.  I kept reading and tracking and reading and tracking and this past month I got myself an online discount brokerage (a whole 'nother lengthy dithering decision process) account , transferred some money and started buying stocks.  The learning curve is no longer a roof over my head, but I am still a fawn gambolling amongst the carnivores. My first purchase immediately lost money.  :)  I now have five stocks, and I am somewhat ahead overall, but the individual stocks which are up or down changes everyday.  :)

But but but!  I was not anticipating getting any of the dividends for quite sometime, since entitlement to dividends follows later than ownership of stock - but I got $22.44 at the end of April - even though I owned some of them less than a week. Neato!

What is sad is that when this pile is fully operational on the dividends, each month I will get more payout than I do on my RRSP, and the RRSP pile is three times larger.  AAAaaaannd - also not taxable, unlike the RRSP earnings.

Oh yes.  The stock where I can't figure out how to use the financials for evaluation?  Its stock price has increased 30%.  It's not part of my portfolio, though, because it doesn't pay dividends often enough.

Even if I can't earn my whole retirement in dividends, I don't see why what little money I have shouldn't earn as much as possible.

Mar. 12th, 2015

10:03 am - First Spock and now Sir Pterry.

2015 is not starting out well.

Mar. 4th, 2015

10:27 am - This. Totally this.

http://comic-mutts.livejournal.com/996326.html

Feb. 27th, 2015

09:49 am - Dear Leonard Nimoy

Please rest in peace.

We will miss you so much.

Love,
All of us.

Feb. 20th, 2015

03:12 pm - The End Is Nigh ... or something

I just had a what-I-don't-even moment.  I just paid $2.10 for a candy that was $0.10 the whole time I was age 2 to 18 (I don't remember being given a dime to buy it before age 2).  So on the one hand, wow, 21 times more expensive, yikes and stuff.  On the other hand, at the earlier part of that time, my Dad was supporting a family on $5000.00 a year.  Which means that same job should now be paid $105,000.00 a year.  I don't think so.  When I was 15, minimum wage was $1.50, so it should now be $31.50 per hour.  Har de har har.

Aside from cane shaking, I am thinking of this in context of admonishments to invest rather than just bank one's savings.  From the above, I am not sure that, even if investing is 4 or 5 times more lucrative than banking, it will be enough to keep up the purchasing power.

Moral of the story: I *knew* it - I should have bought more smarties when I was a kid.  :)

Jan. 3rd, 2015

08:01 pm - Happy Start of 2015!

Being in the last time zone makes for some lack of oomph when it comes to wishing people Happy New Year! because it has already been done for 24 hours and everybody else is sleeping their way toward their hangover.  Woo.  But here it is belatedly: Happy New Year!

However, if you recall last year's new year's entry (http://agoodwinsmith.livejournal.com/154573.html), I have this superstition about whatever one does that day being symbolic for the coming year.  This year I spent it at home being sick with a cold.  So my symbolic thing is to have dragged something from the previous year into the new year and then recovered from it.  I haven't actually completed the recovering part, but I am far enough along to say that my symbol for this year is that no matter what yuck I have brought forward from 2014, it will be conquered.

Deal.

Tags:

Dec. 13th, 2014

12:35 am - Nope 2.

Can't view the comments of any livejournal posts from home.

I am angry about this, but also inebriated, so probably won't make sense.  Basically: fuck all the things.

Tags:

Dec. 11th, 2014

09:43 pm - Nope.

Go away.  Log out login.  Turn it off then on. Nope.  I don't have enough free time to be spending it on unravelling a problem that doesn't have a cause that I have any influence over.

Oh Usenet - how I miss you.

Tags:

08:11 pm - Okay - the weirdness continues.

So.  I can log in to LJ at home - good.  And I can read the entries - good.  But I can't read the comments.  Weird.  I was trying to read the comments on James Nicoll's post about which phone plan is best, and it keeps flipping me out to his whole list of posts.  No matter where I start, I get to the comments, and *flip* - there I am at the list of posts.  So peculiar.

Tags:

Navigate: (Previous 10 Entries)