When I first started, I opened up a TFSA savings account earning less than 2%. I treated it as a regular savings account depositing/withdrawing then depositing some more back and I got penalized for "over" contributing for the year. (I never had more than $5,000 in the account) So my first year for TFSA was actually a lost cause. I ended up paying a penalty that was more than what I earned in interest for the year! Sad, but true.
Lesson learned: I can not deposit the amount withdrawn for the year back into my TFSA. I would have to wait till the next year to deposit the amount withdrawn + the contribution limit.
The following year, I decided to open up a brokerage TFSA account with Questrade to buy stocks. I've made quite a few critical errors in my early trading days as I got impatient with my slow going stocks... I do regret my impulsiveness.
After all the mistakes and bad trades I made over the years, my TFSA now stands at $47,169.83 +52.16%. My rate of return is decent, but it could have been better in all respect.
Currently, I only have four stocks in my TFSA:
500 shares of FN.TO -1.02%
217 shares of D.UN.TO -4.75%
148 shares of V +58.92%
150 shares of MA +33.51%
But for 2015, I am debating if I want to contribute the full $10,000 maximum allowed or not. What is a decent Canadian stock trading these days? I am finding the markets over valued with the bull run we've had in recent years. Buying American stock is out of the question since the Canadian dollar has fallen so much in the past year against the American dollar.
Another reason I've held back contributing this year is I have been working on my non-registered account deriving monthly income on a consistent basis from option trading. I would be taking away my buying power within that account if I were to take out $10,000. Below are my results from trading options alone:
| REALIZED PROFITS THROUGH OPTION TRADING | |
| AUG 2014 | $0 |
| SEP 2014 | $98.96 |
| OCT 2014 | $0 |
| NOV 2014 | $1,588.24 |
| DEC 2014 | $683.54 |
| JAN 2015 | $847.75 |
| FEB 2015 | $1,125.43 |
| MAR 2015 | $1,464.44 |
| APR 2015 | $678.84 |
| TOTAL | $6,487.20 |
Yes, I can move money around. But do I really want to buy a lacklustre stock in my TFSA. This market is unpredictable... but with trading options, I am putting money into my pocket each month instead of watching gains or losses on paper.
Plus I have other commitments and obligations to attend my money to. It is also hard to save when I'm in the lower middle income earner category.
Have you considered any of the large Canadian banks? TD, BNS, RY, BMO or CM? I have been buying those banks for several months in my ROTH account.
ReplyDeleteYes, I have BMO.TO for quite some time now & NA.TO in my RRSP account and recently bought TD.TO in my nonregistered account to do covered calls in my Interactive Brokers account. If I were to buy, safe bet would be a bank. Thanks for the suggestion.
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