Yet another update from our favorite young millionaire, QCash. For those of you who are new here, QCash is a self made millionaire who retired at the age of 36 with a net worth of over 1.5 million. This post gives us a glimpse of what he holds in his portfolio.
In response to a reader question, I am providing a comprehensive listing of my portfolio holdings.
If you refer to my account structures, you will see what all the account numbers mean and what I am trying to accomplish with them.
Ironically, as I was looking at FT’s Smith Manoeuvre portfolio, it occurred to me that we are pretty sympatico on our dividend paying stocks.
I have also made some moves in the last month to reduce the mutual funds (with their yucky MERs) from my wife’s portfolio and move the cash into a few bargains. I also made a foray into a few Income Trusts. I looked for some energy trusts that have been hammered because of the falling oil prices, looked at their distributions when oil and gas were at their current levels and examined their long term cash flow potential.
I did manage to catch a few falling knives and got cut as a result, but overall, I remain content with my strategy. As I mentioned before, I am not losing a lot of sleep through this market turmoil as I still have my RRSPs and real estate to fall back on.
Since recently dropping $200k in paper losses, I lost an additional $75K, but has since rebounded to total losses of only $125,000. Not enough to have me crawling to the window ledge any time soon.
So here you go (comments, criticisms and kudos) welcome:
I1 – Growth/Dividend account
With this account, I tried to mimic the dividend growth fund from Bank of Montreal. I was not always successful in picking up the stocks I wanted at the price I wanted. While this is not a comprehensive list, this represents my top 10 holdings:
- Barrick Gold
- Bank of Nova Scotia
- Canadian Natural Resources
- Canadian National Railway
- George Weston
- Manulife Financial
- Power Financial Corp
- Talisman Energy
- Suncor Energy
- Sun Life Financial
I2 – Income Generating – Joint
1250 shares of BMO
10000 shares of PMT.UN (I also own a few of these shares in my RRSP – see below)
I4 – Non-registered – My Account
25000 shares of EIT.UN (this is the one that it is causing my stomach to rumble the most). At the time, this represented only 5% of my portfolio and I like it as it was diversified over a large number of trusts, much like XTR). I am watching the exchange offer closely and will decide what to do with my warrants, when issued. However, it does generate $1750 per month for me.
I5 – Non-registered – Wife’s Account
My wife was a mutual fund gal and still is. She currently holds:
- 7200 units of BMO Monthly Income Fund
- 1800 units of Mavrix Dividend and Income Fund
- 4800 units of TD Monthly Income Fund
- 6000 shares of Consumers Waterheater Fund
I have been slowly weaning my wife off mutual funds, especially ones she has “duplicate” of. All of the above funds essentially hold the same stocks. The same stocks I have been accumulating in our I1 account. The only reason I haven’t dumped them in their entirety is that she has held these over several years and has some significant capital gains. I am trying to avoid triggering them until I get a real firm grip on what the tax implications on our overall portfolio will be.
In our registered accounts, I have become more aggressive as I didn’t have to worry about taxes on capital gains on the stuff that was in there:
R1 – My RRSP
- 1500 PMT.UN Paramount Energy Trust
- 500 PWT.UN Penn West Energy – I actually sold these shares from my I1 account earlier this year, but decided I like the yield.
- 1000 ROI Fund shares – these were a Labour Sponsored Investment Fund I picked up a few years back. This was a classic example of investing in something for the tax implications rather than the underlying company (generally a very bad idea). I have to hold onto them for a couple more years without having to pay back the tax credits I received for them.)
R2 – My other RRSP
This has two private mortgages and represents my “fixed income” component. I have one mortgage at 10% and another at 5.5%. Both pay weekly and I transfer the cash to my R1 account annually.
R3 – My wife’s RRSP
I finally got my wife out of all her various mutual funds this year, only to invest them as the market collapsed (she is still not talking to me :-) but we have some principal protected notes through BMO – Skylon (this is because of her aversion to risk, which has been rewarded this year) and I also put her into the ROI Fund when I took my shares as I wanted the tax credits (again, this is a bad reason to invest).
The rest of my wife’s portfolio represents the rest of our “real estate” holdings:
- 300 Canadian Real Estate Investment Trust
- 1200 H&R Real Estate Investment Trust
- 1000 Riocan Investment Trust
She also holds 5000 shares of MacQuarie Power & Infrastructure Fund. While she has taken a hit on the capital, the return adds up nicely in her account each month. And she doesn’t really need the money for another 30 years or so, so I hope we can keep on top it.
I moved her RRSP money mostly into trusts to try to increase her return. Holding the trusts in an RRSP is great, but I am sure there will be implications come 2011 as the tax changes take place. I am still educating myself on what these changes will do to the distributions, etc…
I have been building a spreadsheet (that is getting more and more complicated) that outlines monthly/quarterly distributions to these accounts, and sorts all the holdings by type across my entire portfolio so that at any given time I can see my asset allocation by type.
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