Our annual goal is to maximize the contribution limits of our TFSA beginning of each year. We aim to contribute the maximum allowable limit every first week of January.
Here are the TFSA contribution limits by year since its inception.
- 2009 – $5,000
- 2010 – $5,000
- 2011 – $5,000
- 2012 – $5,000
- 2013 – $5,500
- 2014 – $5,500
- 2015 – $10,000
- 2016 – $5,500
- 2017 – $5,500
- 2018 – $5,500
- 2019 – $6,000
- 2020 – $6,000
- 2021 – $6,000
- 2022 – $6,000
Total contribution room = $81,500
For the month of December we made two additions in our holdings. Check here Our Total DGI TFSA Portfolio and projected annual income.
Here’s the list of companies that pay dividends in December. We own few similar securities in our TFSA portfolio and a few individual ones.
December has brought us $827.57 of passive income in our TFSA accounts alone. This has shown a 25.29% YOY growth compared to same period in 2020.
While we received 3 pay checks from work in the month of December (active income) yet we received 31 paychecks from different companies for the same month without spending a single hour at work (passive income). Our ultimate goal is to live off passive income through dividends without harvesting its capital.
The line graph clearly shows how we made adjustments in our TFSA portfolio.
- Firstly, In 2019 we owned only a few dividend stocks and mainly focused on monthly dividend payers.
- Secondly, the last quarter of 2019 and beginning of 2020 prior to the March coronavirus stock market crash we started to diversify our portfolio by selling some shares of our monthly dividend payers and mixing it with quarterly paying dividend stocks covering all sectors in TSX.
- Finally, we are disappointed with the 3.3% decline in our total dividend income 2021 compared to 2020 still partly due to the mistakes we made in 2019 focusing only on a few high yield monthly dividend stocks.
However, we continue to evolve as investors and learned from past mistakes. If you will see the line graph above, July 2021 onwards we are now seeing steady growth and recovery in our dividend income compared to the same period in 2020.
Monthly Goals
We aim to reinvest our dividends on a monthly basis. Here’s what we bought for the month of December in our TFSA portfolio for our November income of $563.88 and proceeds of few BNS shares. Here’s the total transactions we have for our TFSA in December.
Mr. MPL TFSA Trades
- Sold BNS = 34 shares (reduced BNS shares)
- Bought CM = 20 shares
- Bought AQN = 8 shares
- Bought SAP = 5 shares
- Bought SU = 4 shares
- Bought FN = 3 shares
- Bought MFC = 1 share
- Bought ADW.A = 1 share
Mrs. MPL TFSA Trades
- Sold BNS = 33 shares (reduced BNS shares)
- Bought TD = 30 shares
- Bought SAP = 7 shares
- Bought KEY = 5 shares
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More Reading:
One of my recent blog posts highlighted our mistakes in buying our first home in Canada. With those lessons learned we felt we were equipped with much-needed information this time around buying our recent home using leverage instead of selling our investments to use as a down deposit. In doing so, we improved our total current net worth without dipping into our long term investments.
Earlier this week we renewed our home insurance. We made a massive savings by switching our home insurance to Square One up to 30%. If you are looking to renew your home insurance or for a new property, why not check them out and see for yourself if you can also get a huge discount on your home insurance.
Moreover, we also made dramatic changes in our lifestyle and embraced minimalism hence we perceived that living less is more. A few simple money saving tips we have done are reducing our cell phone bills and switching to No fee bank accounts. Similarly, I find dividend investing easy and more fun and you can choose a no fee trading account either as a new or seasoned investor.
Finally, when we are employed, we receive a regular income and a feeling of financial security. However, jobs are not guaranteed and can be also lost and taken away beyond our control as many have experienced during this pandemic due to an abrupt closure of businesses. Therefore, it is very important to generate multiple sources of income to protect ourselves from these unfortunate events.
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Hi, thank you for sharing.
If the Total contribution room = $81,500,
How much do you have in your TFSA right now?
Hi Alaiin,
Thanks for dropping by and leaving a comment. Unlike other PF bloggers I don’t post personal net worth or portfolio updates.
The important thing in an investment is the total return, not the dividend income. You could receive a dividend of 4% and have the stock going down 5% and you are worse off.
In my country, Colombia people can receive 10% interest from their checking account, but inflation is about 15%, thus people are worse off, but you wouldn’t know that from the interest return.
Either way, I think you are on the right track.
I belong to the camp of value investors and we hold dividend growth stocks in our portfolio therefore it provides us income in a form of dividends and capital appreciation giving us total return of our investment over time.
Unfortunately there is no way to predict how the market behaves. So a stock that is down 5% may seem to be worst off if you received a dividend of 4% – if you sell that security during that time. If I hold a dividend growth stock and it’s down 5% then I consider it a great buying opportunity.