Investment Plan – Long and Short Term

As I mentioned before, I started investing in Mutual funds when I was in high school. I didn’t know a lot about them at the time, or even how they really worked, but I bought them because my Dad said it would be good for my future.

Fast forward a few years (or 10), now I research personal finance and stock trading/investing in my free time. What is my investment plan moving forward? The plan is to continue making monthly contributions to my RRSP, my wifes pension, a bit to a vacation fund, and the rest into a non-registered stock portfolio. My non-registered stock portfolio is where I hope to gain substantial growth through short and long term stock trading/investing.

Right now, my RRSP mainly consists of mutual funds and Canadian Blue Chip dividend stocks which automatically reinvest when dividends are paid out. My non-reg portfolio consists of 70% dividend paying stock and about 30% stocks that I short term trade with (2-4wk holding time). I’ve been using the short term/swing trading strategy for the past 6 months now and so far i’ve been winning more than i’ve been losing (knock on wood).

I typically buy and hold a stock for as long as the momentum keeps chugging along which usually lasts around 2 to 4 weeks. I’ve been picking which stocks to watch based on fundamental analysis, but buying and selling them based on technical indicators. I learned a lot about technical analysis from the education centre along with studying various charts and how they react under various technical indicators.

I learned how to fundamentally analyze companies based on cash flow and other value ratios through reading books like “One Up On Wall Street” by Peter Lynch, “The Intelligent Investor” by Ben Graham, “The Warren Buffet Way” by Hagstrom and “The New Buffetology”. I also learned a significant amount from Tom Gardner’s site

As “sexy” as short-term/swing trading may seem, I think that it is fundamental for a stock trader should know how to read a financial annual report and analyze balance/income/cash flow statements. So if you’re just starting out, pick up the books I mentioned above and start reading!

We plan on moving to a larger house in the near future. When that time comes, I will sell off my non-reg portfolio, put it down on the house and obtain a re-advancable mortgage. From there, I will hopefully use the Smith Manoeuver to it’s fullest. When that time comes, I will most likely reduce my short term trading, and invest in mostly blue chip Canadian and American companies.

Hope you’re all enjoying reading about my financial life. Happy Holidays!

I've Completed My Million Dollar Journey. Let Me Guide You Through Yours!

Sign up below to get a copy of our free eBook: Can I Retire Yet?

Posted in


FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments
13 years ago

You mentioned paying your mortgage off first was your number one priority. Given your age, you must have used a lump sum payment plan to quickly pay your mortgage off. I’m interested to know what method you used. I’ve started a plan of my own to pay off my mortgage ASAP (6 years). Sounds very difficult I know. I started in September with a $214k balance on mortgage. My goal was to find the quickest possible way to get rid of all my debt (mortgage included). I read an e-book titled “Mortgage Cycling” which helped me come up with a plan. First I use the ‘pay it first’ method as described in the “Wealthy barber”. Every two weeks $750 is transferred to a money market account (paying it first), which earns on avg 3% (balances over $5k). Every 6 months I make a lump sum down payment of $9750 on my mortgage from the money in the mortgage account (always maintaining a $5k balance). In addition, I pay my regular mortgage payments bi-weekly with $200 extra each payment. The results are astonishing. My total interest paid once the mortgage is paid off (6.38 years) is $37,470 compared to a whopping $152,255 interest I would pay if I made over the life of the mortgage at normal payments.

I totally agree with the pay down mortgage first. A couple of points though, I’m paying a large amount of money that is currently available, some may not be able to contribute this much. Know that any bit extra you can pay on your mortgage, the greater the interest savings. There are other ways this can be achieved (without using a money market account). Another common method is using a heloc and visa to “cycle” money around to pay off your mortgage. Another thing to watch out for is penalties from the mortgage loaner, know your limits for excess on principle each year

Any thoughts?

FT, this is a brilliant idea. This is something I’ve been looking for awhile now. We share a lot of similarities, age, rental property, financial freedom goals. I’ve started from the start and will eventually get through all the posts. Cheers

ron M.
14 years ago

Looking for a good investment for RESP brand new child any suggestions. Was looking at something like Trimark fund SC. or just buying TD Bank or other long term good performing stock. I take it there is no manuever to make the investment tax deductible to the parent or grandparent?

On another vain where do i get info on this Derek Foster portfolio and why do you think it is so good?

Q Cash
14 years ago


You asked a couple posts back what my savings strategy was. Essentially, I was (am until the end of the year) paid weekly with a direct deposit. I set up an ING transfer weekly and then after 3 months, reinvested that money.

At the beginning of each year, I max out my RRSP contribution as soon as I know what it is. Usually with some of my tax return, sometimes with my savings.

Most of my RRSP is in mutual funds and non-exciting stuff.

Next, I max out my kids RESP contributions. That is in monthly income mutual funds through BOM. We have two kids and can contribute $4000K each per child. With the CESG, we get an immediate 10% boost ($400 on $4000).

We can only put $44,000 per child total, but I figure if I can get it all in the first 11 years, that leaves 6-7 years of pure growth. Our kids are young, so people ask me why I am not in a super aggressive fund, but that is my wife’s conservative nature winning through. We actually use a dividend fund, monthly income fund and equity fund to try to achieve some balance.

Finally, when we first bought our house, paying off the mortgage as soon as possible was priority one because we both knew that by being mortgage free, the choice to stay home with the kids was easy to make. And we were right.


PS I can give you a breakdown of my overall investments in another post. But I have been trying to adopt Derek Foster’s portfolio. I just haven’t moved too many stocks/funds over because I am going to get hit with huge capital gains and I would rather do that in the new year, when my income will be lower.