Wednesday, November 26, 2014

Registered Accounts

I had to sell stocks in my registered accounts to ensure that I have enough money there to cover this year’s withdrawal and withdrawals for the next few years. The market is relatively high and so it is not a bad time to sell. I basically look for stocks with the lowest dividend yield and sell them.

This year I sold Canadian Tire (TSX-CTC.A) and Saputo (TSX-SAP). According to the Globe and Mail, the dividend yield on Canadian Tire is 1.657% and on Saputo is 1.576%. I am putting what money I do not need this year from my registered accounts in 1 year GIC.

I used to have the balance in an MMF, but TD’s Fixed Income Desk told me that TD has a TD Investment Savings Account (TDB8150) with an interest rate of 1.2%. This rate is, of course, better than the MMF of around 0.32%.

I have 3 to 5 years of withdrawals required from my registered account in cash or near cash. Bear markets can last up to 3 years, so it is wise to have at least 3 years of cash in an RRSP account you will be withdrawing funds from. To have 4 or 5 years of cash gives you a margin of safety.

On my other blog I am today writing about Northland Power Inc. (TSX-NPI, OTC-NPIFF) ... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

No comments:

Post a Comment