So I bought 50 Shares of Bell Canada (BCE.TO). While my wife and I have a respectable investment in RRSP’s and TFSA’s, they’re index funds with a couch potato strategy. So not much fun and not much to talk about.
However, the first entry into Dividend Investing could be interesting! My goal is to build up a portfolio of Dividend producing investments to generate a passive income over time. I’m still on the fence whether I want to go with Dividend producing ETF’s for their diversification, but there’s something about owning a stock directly I find satisfying…
Even though I consider Bell to be a stable and predictable stock, I’m just getting started in non-registered dividends and I figure that it’ll generate a passive income of $37.50 every 3 months or $150/year!
I’m a fan of index investing and the couch potato strategy. Why? because I believe these days there’s so much out of our control that investing in individual stocks really is like gambling.
With that said, I do like the idea of having a diversified portfolio of large companies with consistent dividend growth but that’s a different story for a different day.
The reality is that who would have guessed a week ago that VW would have nearly $20 billion in fines that would drop their stock 30%+ over the course of a few days!
Perhaps it’s an opportunity for people to purchase VW now? Perhaps it’s a growth opportunity that too many who got spooked jumped ship!
Anyone got that magic crystal ball?
In Canada, we’ve got this great investment vehicle called a Tax Free Savings Account (TFSA). Basically, it’s an account which allows you to have $5500/year you can invest in pretty much anything which can grow tax free.
As part of their campaign promise, the PC government increased the limit to $10,000. Yay!
However, both the Liberal and NDP parties have indicated that they’re going to revert the new limit to $10,000. Boo!!!
So TFSA’s were increased from $5500 to $10k this year per person over 18 regardless of income. Everyone has the same opportunity, even playing field. Lots of people are up screaming that this is better for the rich and doesn’t help those in lower income situations.
People who want the limit reduced are WRONG and I’ll tell you why. Read more