Monday, 23 April 2012

Fully Contributed

Today I finally did something I was meaning to do since January 1st 2012. I recently transferred my position in CIBC over to my TFSA account and now it's collecting me dividends tax-free. With that transfer and all the other transfers I already made, I had leftover contribution room of $459.96 - not quite enough to buy another holding.

I didn't want that room to go to waste (although it would be carried over to the next year) so I just topped off the rest in a TFSA savings account. It took me 4 months but I've finally fully contributed to my TFSA. Now all I have to do it set up my DRIPs because the amount of money that would accumulate in the account would not be enough for me to buy shares manually and I'd rather have my money reinvested as soon as possible than to have it sit there for a year until I can pump in another $5000.

Next goal for my TFSA? Eventually I would like to get all of my positions in the TFSA DRIPing so that I can set them on autopilot and while they collect more shares for me, I can focus on the non-registered account. When it gets to the point where what I'm getting back in dividends is substantial, I'll turn the DRIP off and consciously decide when and where to put the funds (I like to call it "manual DRIPing"). No strict deadline for this one because of the annual $5000 contribution limit, but I can speed things up by increasing my positions in companies I already own rather than transferring stock over from my non-registered account. The only issue with that is I need to find some cash so I guess we'll see how much of that I have when December rolls around.

Slowly but surely, I'm putting the pieces of the money-generating puzzle together, and I'm positive that in the long run this dividend approach will reward me.

-the Paperboy

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