The income account differs slightly from a retirement account. The income account will not be expected to keep up with inflation unlike a retirement portfolio. A retirement portfolio pays the bills and must keep up with inflation.
There is an important distinction between the accumulation years and the income years. The former is focused on growing the portfolio to the largest size possible while the latter is to generate the highest income possible while preserving the capital.
Corporate Account Guidelines
When you have a corporation with profits, you have the choice to re-invest the cash for more growth, pay a dividend to shareholders, or keep it in cash just in case.
I am opting to keep the cash in the company for now and investing it. To that end, I have opened an investment account with Qtrade. Qtrade will be my corporate investment platform.
The investment timeline is short to medium simply to earn income. It’s definitely not long term but if there is a market crash, I could wait. I plan to invest quarterly mostly targeting $5,000 per quarter.
The guidelines for the account are pretty simple;
- Preserve capital by not taking unnecessary risks while not expecting growth, per se.
- Earn income from the investment with a yield above 5% from dividends or distributions.
- Keeping up with inflation is not necessary as it’s not a retirement account.
- No re-investment of income. It will either be used to pay taxes, or withdrawn from the corporation as dividends to myself.
- Focus on Canadian currency.
The money invested is simply a way to put the cash to work. Banks don't pay interest, and a high-savings account doesn't pay either.
Corp Account Holdings
The holdings with purchase price and current price along with the total shares will be outlined here for full transparency.
- Invested Capital: $127,000
- Total Value: $122,449
- Forward Annual Income: $8,309
- Forward Yield: 6.76%
- Annual Rate of Return: -4.55%
|19.8%||FHI:CA||CI Health Care Giants Covered Call ETF|
|14.0%||HCAL:CA||Hamilton Enhanced Canadian Bank ETF Class E|
|13.5%||GWO:CA||Great-West Lifeco Inc.|
|12.7%||HDIV:CA||Hamilton Enhanced Multi-Sector Covered Call ETF Class E|
|10.7%||BNS:CA||Bank of Nova Scotia (The)|
|5.7%||FN:CA||First National Financial Corporation|
Corp Account Transactions
All the transactions will be outlined below with a post describing the process of selection.
|January 16, 2023||Deposit||$10,000.00|
|January 16, 2023||Bought||FHI.TO||849||$11.85||$10,069.40|
|March 13, 2023||Deposit||$15,000.00|
|March 15, 2023||Bought||GWO.TO||196||$34.99||$6,866.67|
|March 15, 2023||Bought||HCAL.TO||200||$19.77||$3,962.75|
|March 15, 2023||Bought||FHI.TO||350||$11.25||$3,946.25|
|May 15, 2023||Deposit||$20,000.00|
|May 18, 2023||Bought||BCE.TO||210||$62.96||$13,229.75|
|May 18, 2023||Bought||FN.TO||180||$39.98||$7,205.15|
|July 19, 2023||Deposit||$10,000.00|
|July 19, 2023||Bought||T.TO||420||$24.23||$10,185.35|
|August 2, 2023||Sold||GWO.TO||156||$39.78||$6,196.37|
|August 2, 2023||Bought||BCE.TO||110||$56.97||$6,275.45|
|September 15, 2023||Deposit||$10,000.00|
|September 20, 2023||Bought||BNS.TO||156||$64.83||$10,122.23|
|April 19, 2022||Deposit||$20,000.00|
|April 20, 2022||Bought||GWO.TO||134||$37.266||$5,002.43||Details|
|April 25, 2022||Bought||ZWU.TO||600||$13.50||$8,100.00||Details|
|May 16, 2022||Bought||GWO.TO||209||$33.01||$6,907.93||Details|
|September 27, 2022||Deposit||$5,000.00|
|September 29, 2022||Bought||HCAL.TO||258||$20.64||$5,333.87||Details|
|October 4, 2022||Deposit||$8,000.00|
|October 5, 2022||Bought||HCAL.TO||385||$21.09||$8,128.40||Details|
|November 7, 2022||Deposit||$9,000.00|
|November 21, 2022||Bought||FHI.TO||759||$11.95||$9,078.80||Details|
|December 2, 2022||Deposit||$10,000.00|
|December 5, 2022||Bought||HDIV.TO||609||$16.38||$9,984.17||Details|
|December 15, 2022||Deposit||$10,000.00|
|December 19, 2022||Bought||HDIV.TO||300||$15.44||$5,344.75|
|December 19, 2022||Bought||ZWU.TO||460||$11.60||$4,640.75|