Starting to think ahead

[Spudd]

If you want to transfer your RRSP money from Questrade to ING, contact ING and ask them how to proceed. They will want your money, and will be willing to help with the process.

Rather than going to cash you can always go to couch potato as a strategy that should have higher growth than a GIC, but is not prone to speculation. By the way, "going to cash" in your RRSP doesn't mean withdrawing it, it means selling the stocks and leaving the lump of cash sitting there in the account. Or putting it into a money market fund or high interest savings account.

[humble_pie]

this is not my theory at all but comes to you as a watered-down version of moneyGal. With apologies to MG if i'm getting it wrong.

guy you are not only a "stock," you are an insanely hi-risk speculative stock. Yours is an arty life plus an arty wife in another country. The venture factor is off the chart.

so in your savings you need "bonds" in order to stabilize the boat. You need to compensate the too-lively life stock with dull, boring, safe rrsp investments. Guaranteed interest-bearing paper like GICs is an idea with merit. Do you know how to construct a GIC ladder ? if not, maybe a good idea to learn how.

you could also have a dividend etf in rrsp so as to add slightly higher income. Perhaps a 60/40 GIC/etf division. Ask here in cmf forum for the best canadian dividend etf. There's always ishares, but i believe some like the vanguard dividend etf because it's less bank-weighted ... sorry, i'm not an etf resource, don't basically buy em.

the GICs could be constructed at ING but the etf would have to be in a broker account like questrade. A person like yourself should not be dabbling in over-the-top common stocks in rrsp or even in non-registered account, at this time in his life.

ps the game studio sounds good, as long as you're investing mostly time + creativity for now.

pps why are U so addicted to excitement ? ... just wondering, no need to answer.

[JustAGuy]

this is not my theory at all but comes to you as a watered-down version of moneyGal. With apologies to MG if i'm getting it wrong.

guy you are not only a "stock," you are an insanely hi-risk speculative stock. Yours is an arty life plus an arty wife in another country. The venture factor is off the chart.

Yes... this is one way of putting it. That's part of the reason that my wife took the job in the other country, is the stability her job offered. Getting full time work in film/games is a very rare thing, and that's what she was offered when in Canada she was only finding short term (less than a year) contracts. She's now at a place that looks like it will be doing great for several years to come. When contracts end, it's normally time to find a new one, and I try to make that transition as seamless as possible normally. I'm already doing my recon in the eventuality that my company implodes, and also trying to make connections so that I might easily have something lined up in San Fran come June in the event that my company does *not* implode.

Though when talking of stability... my brother, who took a nice stable office job and still has had to move around a few times, has told me that the way he sees it, at least I have the comfort of knowing my jobs are temporary. Most other people are tricked into thinking their jobs are permanent.

so in your savings you need "bonds" in order to stabilize the boat. You need to compensate the too-lively life stock with dull, boring, safe rrsp investments. Guaranteed interest-bearing paper like GICs is an idea with merit. Do you know how to construct a GIC ladder ? if not, maybe a good idea to learn how.

Yes, I understand this, and it's where I started... I suppose inflation is supposedly low right now at 1.2% but it was closer to 3% back in Feb when I made the decision to try at stocks... this meant that I couldn't find a GIC to put my money into that was higher than inflation. Seemed dumb to put my money into something that was guaranteed to be worth less when it came out of savings.... whereas stocks... there was the potential that I could gain tremendously... just look at how any investor would have made out if they'd invested 10k in Apple 5 years ago

you could also have a dividend etf in rrsp so as to add slightly higher income. Perhaps a 60/40 GIC/etf division. Ask here in cmf forum for the best canadian dividend etf. There's always ishares, but i believe some like the vanguard dividend etf because it's less bank-weighted ... sorry, i'm not an etf resource, don't basically buy em.

I'll look into this. I have a Streetsmart Mutual Fund with ING which hasn't been performing terribly since I bought it... I'll see how it's holding up compared to some of the etfs out there...

the GICs could be constructed at ING but the etf would have to be in a broker account like questrade. A person like yourself should not be dabbling in over-the-top common stocks in rrsp or even in non-registered account, at this time in his life.

ps the game studio sounds good, as long as you're investing mostly time + creativity for now.

There are some very minor expenses right now, but yes my partner earns less than I and is supporting his wife through school... we've agreed to spend money equally, and frugally on this. It is primarily a time sink, though at some point we will likely have some software costs, incorporation fees etc that will have to be dealt with.

pps why are U so addicted to excitement ? ... just wondering, no need to answer.

I feel the pangs of mortality. I want to accomplish as much as I can with what little time I have. There's too much amazingness out there and we have almost no time to witness any of it. Would be a shame to waste that time doing nothing. Basically.

Doctors apparently are the largest risk takers in their spare time... maybe it's the same for me... you get into a profession that you're passionate about, expecting that you're going to make a difference... for doctors it's saving lives.... for me it's bringing enjoyment to the masses on the big screen... but maybe you start doing the job and realizing that it's really no more special than any other job and you feel kind of trapped in the monotony. What more is there than to find something to trigger that dopamine rush?

[JustAGuy]

pps why are U so addicted to excitement ? ... just wondering, no need to answer.

This is actually a question that really interests me...

Another thing that occurs to me is that I didn't used to be.

The whole time I grew up, I was actually pretty boring. Didn't want to play sports, was very introverted, and just kind of did my own thing quietly. In college I only went to probably two parties (only one that I can remember) both because I wasn't invited often, and because when I was I usually turned it down in favor of working harder so that I could get a job and pay off my debt after graduating. I had very little financial support and graduated with almost 50k of debt. I lived very very frugally all through college, and for a few years afterward. I never vacationed, or bought anything. I never drank or smoke or did any other sort of drugs. Never went to the gym, didn't eat out. It wasn't an exciting life, and I didn't seek excitement.

But a few years back, when I finally got my first film job I got rid of my debt, and started to work 60 hour weeks, my next job I was working 96 hour weeks, and my last job I worked around 70 hour weeks for 5 months straight... sometimes dropping down to 60 hours, sometimes up to 80 hours... It's high pressure, and high intensity, and when you come out of that, you're left with this vacant sense of not knowing what to do with your time. So you start evaluating more, "what do I -want- to do with my time? And you start trying to make it happen. Either that or you basically become a shell that can't carry on a conversation.

So largely that's probably similar with why I don't completely know what to do with my money. For a while every cent made a difference. I remember having $4.80 in my bank account at one point... and a huge debt, that was increasing. So once I got rid of my debt, and started accumulating money, and not really knowing what to do with it, it started to become a thing of what can I do with this money to make it grow even faster? But also wanting to do more exciting things than come home and be introverted.

[humble_pie]

I suppose inflation is supposedly low right now at 1.2% but it was closer to 3% back in Feb when I made the decision to try at stocks... this meant that I couldn't find a GIC to put my money into that was higher than inflation. Seemed dumb to put my money into something that was guaranteed to be worth less when it came out of savings.... whereas stocks... there was the potential that I could gain tremendously... just look at how any investor would have made out if they'd invested 10k in Apple 5 years ago

yes i thought you'd come back with something like this.

here's the point. One man has a crazy job, puts his 10,000 retirement savings in a GIC ladder that yields 2.5-3% per annum. At the end of 5 years he has about 11,590.

the other man has a crazy job too but he lets the light fantastic run amok. He puts his 10k retirement savings into stocks he knows nothing about. He suffers a 45% loss. Instead of 10,000 he now has 5,500. He refuses to learn, still thinks he can beat the market, so it's likely he'll never catch up but instead might lose even more.

which one has the better long-term savings plan ?

i don't believe you can compare your situation to doctors. MDs have guaranteed high incomes for life, no risk of being laid off, excellent retirement plans or else they can craft these for themselves.

but you ... employment is erratic & temporary at best. Having to source work in a totally different field is a constant possibility.

as for your work in animation, i happen to think it sounds great. I'm being sincere, not sarcastic at all. It would not surprise me in the least to find out that you have a marvellous talent. I like the game studio idea & wish the very best to you & your hardworking partner.

[humble_pie]

It's high pressure, and high intensity, and when you come out of that, you're left with this vacant sense of not knowing what to do with your time ... wanting to do more exciting things than come home and be introverted.

what a lovely story. Look at the iron discipline you had, to put yourself through college & i assume art school with almost no help, then to pay down the whopping $50,000 student debt all by yourself. Kudos to you. Guigz will kill me but i say châpeaux !

the word "vacant" seems to be key. I wonder if the faraway wife is part of this feeling. Of course it's difficult to come home from an electric creative atmosphere to an empty home & 4 silent walls. It's normal to look around for something exciting to fill the time.

but it seems to me you've hit on a dangerous pastime. It's fine to plan your retirement savings, but you've turned this mild challenge inside out. Now you're inside the nuclear reactor without any protective gear & the trouble is that you believe you're Spiderman.

i'm not sure what to say, other than that you could lock down your retirement savings with a conservative plan similar to what's spelled out above - something like GICs plus perhaps a simple dividend etf - & then strictly quit fiddling. You had the singleminded discipline before, for a number of years, so you can certainly find it again.

then would it be too far-fetched to suggest looking for something else that would truly be exciting ? a sport maybe ? sailing ? kayaking ? rock climbing ? you already have the game studio underway, so just one more gripping activity would probably be enough.

[JustAGuy]

Yep, I already do rock climbing and parkour in my spare time, and travelling... I actually thought that was what you were referring to with addiction to excitement.

I agree, obviously it makes sense to earn 2% per year on savings than throw away 45%. There's no disputing that. And if I can just maintain putting money away nito GIC's and what not like that I can have over a million before I'm ready to retire at 65. I guess it's just very tempting to want to have multi-millions before that age...

[JustAGuy]

Well.

It's no secret that was a bad month for me. Lost a lot of money in stocks. In total this year, that makes $6722 that I've lost to be exact or 55.25% of what I attempted to invest. And had two visits with my wife which resulted in a lot of spending. I'm currently in damage control mode. I've canceled my gym memberships and netflix. Living frugally. Let's see how much I can change my bad habits going forward. I plan on reading The Lazy Investor but I've been so busy I haven't had an opportunity to go to the library.

Digital Domain was purchased by Galloping Horse / Reliance Media and appears to be solidly structured moving forward, so I do not forsee any problems there before the end of my contract in May.

I am trying to find work that will bring me to San Francisco, but timing is the most awkward part of trying to find work in this industry. I need to try and find something that I can start in June so as not to break my contract.

$950 a month for rent
$64 BC medical every month until October
<strike>$50.40 per month for Gym membership</strike>
<strike>$65.33 per month for Climbing Gym membership</strike>
$33.60 Telus Mobility
$58.56 Telus Internet
$25 BCHydro
<strike>$8 Netflix</strike>
$1132.5 Total Bills Per Month (reduced by $122.39/month)

Debt:
$0

Wealth:
$16,273.30 @ 1.8% High Interest Savings with Ally (-1499.48 month change)
$460.83 @ 0.25% Thrive account w/ ING Direct (+164.56 month change)
$10,464.00 CAD in ING TFSA Streetwise Funds (+165.28 change from last month)
$1763.91 in equity with Questrade TFSA (-920.19 change from last month)
$6535.09 CAD in equity with Questrade RSP (+999.2 change from last month)
GIC RSP with ING @2.75% (value at maturity Dec 2015 will be $6823.95)
TFGIC with ING @ 3% (value at maturity Dec 2014 will be 5,796.83)

35497.13 CAD (-1091.63) / 12,417.95 AUD (-30.31) beginning of October
36591.76 CAD (+4634.00) / 12,448.26 AUD (-87.55) beginning of September
31953.76 CAD (+2746.95) / 12,535.81 AUD (-28.48) beginning of August
29206.81 CAD (+1121.82) / 12,564.29 AUD (+1154.84) beginning of July
28084.99 CAD (-1401.16) / 11,409.45 AUD (-25.75) beginning of June
29486.15 CAD (+2766.05) / 11,435.20 AUD (-126.11) beginning of May
26720.10 CAD (+2709.38) / 11,561.31 AUD beginning of April (10000AUD->10,492.08CAD)
13518.64 CAD (+2257.46) / 21,591.28 AUD (+5.16) beginning of March
11261.18 CAD / 21,586.12 AUD beginning of February


My bills are finished in Australia, but with Digital Domain going bankrupt they neglected to pay a bunch of the bills they owed... including hotel costs for when people relocated. One of my friends was billed a few thousand from the hotel to his Australian account which caused his account to be overdrawn by just a little. To help him out I temporarily loaned him $100 to put him into a positive balance to prevent further fees from accumulating. DD is now in the process of sorting that stuff out, so said friend will be able to reimburse me soon enough.


Questrade RSP -> Invested $10021, P&L ($3485.91)
~~~~~~~~~~~~~~
DWA - 75 @ 17.78

Questrade TFSA -> Invested $5000, P&L ($3236.09)
~~~~~~~~~~~~~~
SBUX - 7 @ 57.09
SPM.TO - 30 @ 1.47


Growth:
Attachment 168
G -> Overall in Canadian Funds w/ exchange rate
R -> Canadian
B -> Australian

[humble_pie]

ottomh i see a big sea change here.

i think just writing things down, taking the time to reflect, is a big step forward.

great to hear the job will hold up ! all your employment plans sound fine. Keeping the fingers crossed.

really liked the part about spending on visits to your wife. Also liked the part about helping the friend who got stuck with totally unforeseen hotel bill due to crazy employer. Hey, you're an artist. Life is always going to be on the wild side.

all the more reason to think about putting a few dull bondlike investments in the rrsp to serve as an anchor for your longterm savings plans.

their dull returns may not seem flashy at first, but one of the things enormously in your favour - because of your young age - will be the power of compounding over your lifetime.

[JustAGuy]

I misunderstood my contract I still have to pay BC Medical each month, I do get extra benefits though covered by the company. Was looking forward to lower monthly bills.