Talk Personal Finance – April 2015
Welcome to the month of April everyone!
March was a really rough month for me and I am glad that April was off to a better start. Not only did I go out of commission from finances due to exhaustion, I have also spent more time playing video games and watching television. However, I have found that it was a much needed break even though it has proven to be quite unproductive.
On the upside, my break has restored my motivation in finances once again so I am going to just dive right into my updates.
Portfolio Strategy
In the latest development for my portfolio, I have decided to sell off some of my stocks while they are up. These stocks are mostly the ones I have purchased at the start of my journey without doing any research in the company ahead of time.
I am also putting a hold on my stock purchases for the time being while I increase my cash positions. Personally, I believe that the bull economy has ran its course and that the bear is in the horizon. If that do happen to be the case, I will have a substantial amount of cash to take full opportunity of the down market.
TFSA Increased Limit
As for my TFSA, I am currently behind schedule in the maximization. My original intention was to have my TFSA full contributed by the end of March. Unfortunately, I was not able to do that and I will have to extend my deadline by a month or two. I have $2,000 left of contribution room in my TFSA.
Additionally, it also appears that the Canadian government will soon double the annual contribution limit by 2016. If this does happen, I will need to recalculate my financial map to better accommodate this change.
Independence vs. Rental Property
Another thing that is on my agenda recently is that I am ready to start looking for my first property. Hopefully, I will be able to find a suitable 2-bedroom condo somewhere in the city where it is convenient. Whether I plan on pursuing independence or renting out the property for cash flow is something I have yet to decide.
I have mentioned this endeavour numerous times already and have yet to course out any action to pursue it. This is why I have decided to create a checklist on the steps I will need to take to actually take action. I plan on posting this on my blog within the near future.
Preserving cash while in this volatile market would be a good idea. I have been thinking of doing the same although I found it really hard to pass great valuations on oil companies and companies that are indirectly related to oil companies lately.
Cheers,
BeSmartRich
Hi BSR, my portfolio is too heavily weighted in energy and financial companies. I’ve also sold some of my stocks to add to my cash positions. 🙂
1 year after I graduate from college, I bought my current house. Although I could miss out on the gain for not being in the market. I was happy to keep my money in cash until I find the house I want. Stock market is definitely not a good place for a short term investment.
House hunting can be stressful, you look at 20-40 hours, by the time you done for the week, either the house is no longer available, or your head would explode, or all the houses started to look the same. 😛
For me, when you found your dream house, everything should go very smoothly. Everything requires a little bit of luck!
Good luck with house hunting!! Please do share the story when you found one!!
Thank you Vivianne! Definitely will post the details here. At the current moment, I am looking to invest in a 2 bedroom condo but eventually I will want to rent out a duple or 4-plex like yourself.
Jeff,
We all need breaks sometimes! It feels so great when I come home from school, lay on the couch and watch TV or play video games. But I’m glad to see you’ve regained your investing motivation. I have also had to make the decision of whether I would like to continue my personal investments or acquire a rental property, and I am beginning to lean to the property. A friend and I are very serious about going all in on a house and renting it out. The only sector I believe is bullish is energy, so the decision truly is based on the volatile market.
Good luck on your decision!
D2R
It’s good to see that you’re back in action too D2R! I’m still somewhat in a lazy video game mode. I look forward to reading about your real estate investments!