Welcome back everyone, we’re back here today to do an updated look at our Findependence Portfolios. This is our first update since April 4 2020, if you missed that post you can check it here.
This last 2ish month stretch has been a redemption story for our portfolio as we’ve seen quite a significant climb back from the depths we reached early this spring.
It is still somewhat upsetting that we weren’t able to load the truck up on those dips but we’re still not convinced that this new rally is here to stay.
I could say I’m still 100% bullish on the market, and if we’re talking long term – several years out then that is true I’m still definitely a net buyer of stocks even at this level.
That being said, you’ll notice an increased cash position at the moment and I’m hoping that I can remain disciplined enough to keep this cash even if the rally continues as I don’t want to miss out on a second go round if stock prices meet a waterfall drop over the remainder of 2020.
With that being said let’s have a look at the cash position before we get into the actual portfolio:
Cash reserves: $63,419
Technically this includes our emergency fund as well so it’s not all eligible for investment but it’s still the most cash we’ve had on hand perhaps ever.
We’ll continue with small investments weekly/monthly into the portfolios but this reserve will continue to grow quite rapidly until we see another really strong buying opportunity.
HIS TFSA
You’ll notice these are all Canadian holdings and some of the absolute best dividend companies this country has to offer.
The changes to this account have mainly been the selling of Cenovus (CVE) and the purchase of a few shares spread out across the portfolio.
We wanted to sell CVE once the dividend was cut but it was trading around $3 per share at that point and we saw that as being about as low as it could go. Fortunately we guessed right and ended up exiting the position at $6 per share and re allocated the funds across the portfolio.
HIS RRSP
The larger changes came in this RRSP account.
We ended up selling off over $10,000 in ETFs between our XEC and XEU positions.
Reason being was these were the last remaining ETF positions from our previous way of investing in commission free ETFs. We’d been planning on liquidating these holdings eventually and finally pounced.
We kept about $9,500 of these funds in cash and invested the other $1,000 in a share of JNJ, IBM, O, T and FRT.
This does lower our projected income a bit but the cash will be reinvested at some point and we’ll get that income back when it does.
HIS NON-REGISTERED
Still in its infancy this account is purely based on Canadian Eligible dividends. These are taxed favourably especially in retirement once our take home pay is significantly lower. We expect these to be taxed at or near 0% when it comes time to live off of them.
HER TFSA
A lot of similarities between the two TFSA’s… Foundations of banks and utilities (Oh Canada) with a small allocation to the REIT space. I chose Artis REIT while she chose Plaza REIT.
This will need some diversification eventually.
HER RRSP
The changes in this account were XEC and XEU liquidated similar to Mr. FIC’s RRSP only in this account the proceeds went into Realty Income (O). We felt this is a once in a… long time opportunity to establish a good starting position in O.
Again. Diversification needed.
TOTALS
Here’s a breakdown of our sector weighting both in dollar value and income projections.
We have been on the lookout for good tech exposure but haven’t been able to find any solid entry points in Microsoft or a chance to build our Apple position.
We’re wishing that more stocks in this sector begin to pay dividends in the future to give us more of a selection.
With the sale of Cenovus we’ve also brought our oil and gas exposure down to about 5% which is a lot closer to where we want it and we’re happy to ride forward keeping it at this level.
Questions or comments? Leave them for us below or over on our
Instagram @FindependenceCanada and we’ll be sure to respond.
Also, if we’re missing any golden opportunities in the markets then let us know! we’re always looking for new stocks to investigate.
Thanks for stopping by,
FIC.
Disclaimer: This is not investment or personal finance advice and we can’t guarantee any gains or losses from the information we give here. We are purely documenting our journey and doing this for our own enjoyment and your entertainment. Please seek professional advice before investing in the stock market.