Wednesday, December 25, 2019

Christmas day - new tradition (series 1 of 10)

Dec. 25, 2019

Introduction


It is my Christmas day. I got up around 12:30 PM, and I spent two hours to dance following dancing tutorial. Next one is to plan what  I should do for one week break until January 2, 2019. I like to go over my portfolios, so that I can push myself to form a habit to review my finance statements, and also help myself to figure out how much I can spend on holiday expenses staying with frugal principle and tight budget. The first one is to review my Canada RRSP I just set up less than one year.

Scotia RRSP - Canada index fund


I chose to have a Canada index fund in my RRSP, since I like to learn dollar cost average and how I should build a good habit to invest monthly.

The Scotia bank does not provide rich product features like Ameritrade or Questrade or Charless Schwabs. I will also take time to make sure that I download all statements, and also review my status.

There are a few factors not to select Canada index fund, the cost of fund is higher than Vanguard ETF, and also Canada economy is 8% of the world, small fraction compared to US economy.

The advantage is to apply monthly contribution, $120/ month.

I left $50,000 Canada dollars in 2017 in saving account without any interest, and then put into saving account with 1.8% interest. So I decided to move to questrade.com to build Victoria portfolio.



The profit can be calculated using book value and market value, right now it is $171.00, 5%.

Actionable Items


I think that 5% is a good return, compared to the market S & P 500 Index return from May 2019 to Dec 2019 13.49%. The cost is 1%, which is too high compared to Vanguard ETF.

I invested $3000 dollars in May 2019, and then $120/month. So it is better to follow Scotia US index fund.

One of ideas is to move to questrade.com RRSP account.

If there is bear market in 2020, 20% dip, then I will open another portfolio with initial deposit $1500 - $2000 and start to invest month by month $50 dollar.



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