December 2020 Passive Income

2020 is over. Yes, we are still under lockdown. Covid 19 still controls our daily lives. 

I stayed home from March to June. I received CERB. Stayed on top of finances and didn't accumulate newer debts. 

That being said, let us look on the December passive income. 

The holidays was spent by staying home. I spent my time on learning a course from Coursera. 

Okay, back to money stuff. December was bit better than November. 

I received a total of $737 as passive income aka dividends. Most of which is reinvested. 

I owned shares of RME, rocky Mountain Equipment. The company acquired all of the common shares back. The company delisted on TSX. I got my my money back in my account. Haven't bought anything yet. 

The goal for 2021 is to continue the investments and try to have $1000 per month in passive income. 

What are your goals for 2021? 

Bindu

Financial Bloggers talking this week

Hi 

I try to read what DIY investors and finance bloggers write. I have blogs listed on the side bar on Bindu Designs.

I am not a financial savvy person. Between work and family, I don't have much time to learn a lot either. 

Reading the blogs is one thing I do to educate myself. Let me share with you what I read this week.

GenX shared a post about Where to make some money on "MyroadToWealthandFreedom". GenX is going to keep cash to invest when the market pulls back. He also thinks, commercial real estate is going to take years to recover. 

Dividend Growth Investor gives us a list of nine companies increased dividends last week. All are American companies and I don't own any of them.

In his new post Mark from My Own Advisor compares 3 all in one ETFs VEQT, XET and HGRO. He also mentioned, he would stay away from investing in bond market. 

SavvyNewCanadians talks about strategies to stay away from payday loans.  If you really need money now then you have options like home equity loans and line of credit. Even cash advance with credit cards are better than payday loans. 

Ben Calson talks about millennials are entering in to homeownership . 

Divicents went ahead and already posted the November dividend update. 

Those are the blogs I already finished reading this week.

Bindu

TFSA : My dilemmas

Hi,

I love to maximize my TFSA. 

I can hear you saying, Ya, why don't you do it?

Couple of years back , I was working for 3 different employers. I was working approximately 50 hours per week. Problem was, each employer was deducting taxes according to the amount I was making at each place. After filing my tax return, I had to pay a lump sum to CRA as tax. So, the next year, I added money to RRSP. That helped me not to pay the lump sum amount to CRA. The problem is I didn't have enough money to maximize the TFSA after contributing to RRSP. 

Now, it is still a problem. Now, I got a rental property also. That makes the income even higher. So, RRSP contribution is a must. Some of the financial bloggers mentioned they maximized RRSP and TFSA. That makes me wonder how they do it! 

I am not spending like crazy. All monthly expenses are paid off. There is no credit card balance. Mortgage is the debt I have. But, still can't figure out how to maximize the registered accounts. 

The good thing about TFSA contribution room is we can check it on "My Account" on CRA to see how much is available. I wasn't very keen in tracking my deposits to TFSA. There is a penalty for over contribution.  Since my aim is to maximize TFSA, I am trying to track it using a spread sheet. Each time, i make a deposit, I enter it on the spread sheet. 

Still the question remains: How people do maximize both RRSP and TFSA?

My guess is this: the ones who maximized their RRSP  as well as TFSA must have a higher income, well over $100,000. They might have moved their non registered accounts to TFSA after it was open for all Canadians. 

What do you think?

 

Bindu