The missing parts other than "O&G trust".Which part of "a diversified O&G trust" is contradictory?
It's a bet on the price of oil - nothing less.
Added:
Check the price history in about 1997 of an O&G trust.
The missing parts other than "O&G trust".Which part of "a diversified O&G trust" is contradictory?
Yep, I think they're one of the more volatile types of trust and I wouldn't think it a good idea for someone who requires retirement income to borrow money for that type of investment. The interest deductability on the LOC helps, but you're still reducing your overall return as a result. If oil takes a nose dive and share price and distributions are compromised, you still have a loan to pay.but do you consider a diversified O&G trust like ogf.un a High Risk investment?
Code: Select all
Annual Trading History 1
Year Ended December 31 2004 2003 2002 2001 2000 1999 1998 1997 1996
High ($/unit) 18.42 17.19 11.35 10.10 9.50 6.90 9.80 11.85 12.70
Low ($/unit) 14.02 10.50 9.00 8.00 5.60 4.13 4.15 8.40 11.15
Close ($/unit)17.45 16.35 10.88 9.20 8.70 5.95 4.43 9.10 11.20
Go back to 1994 and look at one of the first O&G trusts - Enerplus ERF.UN and see what $10,000 invested then would be worth today, especially if distributions were re-invested. I have not done this recently, but recall that such an investment would have weathered ups and downs in the price of oil quite well.Shakespeare wrote:Here's the trading history of Freehold royalty trust from .
To me that makes no sense. What you're saying, is that you're willing to accept buying on a peak and take a loss in value to get that (somewhat risky) cash flow of 12% (less interest on the loan). What if the loss in value is 12%, you may as well have taken a loan and put it in a pot and paid yourself from that.True if you are primarily looking for Capital Gains
My response was a general one based on Shakespeares statement. Forget OGF and the LOC loan.like_to_retire wrote:To me that makes no sense. What you're saying, is that you're willing to accept buying on a peak and take a loss in value to get that (somewhat risky) cash flow of 12% (less interest on the loan). What if the loss in value is 12%, you may as well have taken a loan and put it in a pot and paid yourself from that.True if you are primarily looking for Capital Gains
ltr
Distributions from reserves in the Western Canadian basin have a finite lifetime. You are, in effect, prebuying your oil. Do you want to buy it when prices are low or when they are high?the distributions are a large part of why you are buying.
OK - But let me know when oil is next at a low.Shakespeare wrote:Distributions from reserves in the Western Canadian basin have a finite lifetime. You are, in effect, prebuying your oil. Do you want to buy it when prices are low or when they are high?the distributions are a large part of why you are buying.
Shakespeare wrote:Under what laws - federal or provincial - is the RRIF governed? IIRC she probably can't withdraw any earlier than the originating plan will allow retirement, usually 55.
I am sure your prediction will prove correct - Question is when? (NG could be at $8.00 this year!)CdnTrader wrote:When Oil was going through $30.00... ney sayers were saying ...You're buying at the top!When Oil was going through $40.00... ney sayers were saying ...You're buying at the top!
When Oil was going through $50.00... ney sayers were saying.... You're buying at the top!
Maybe it is the top.. but, I don't see much reason for the price to settle back very much... It's cheap... I'm looking for $75.00 oil and $8.00 Nat gas.
But, what do I know.
And if you're nearing RRIF conversion age you need to buy segregated funds with extreme caution. Some funds risky in RRIFseezee wrote:You don't want to have to redeem at a loss, just because the risky fund you invested in tanked at the wrong tome.
Segregated funds are dangerous in RRIFs because of the mandatory withdrawal rules. You may have to cash in early — and lose the guarantee... Haynes is now over 69. His wife, Jean, is 68. Both have to cash in some of their segregated funds before the 10-year maturity date. They will lose money when cashing in their segregated funds, which are down in value since their peak in March 2000. And since segregated funds have higher management fees than mutual funds, which have no guarantee, they will have paid too much for their investments...
Cashing in segregated funds before maturity will make your guarantee null and void. If you are more than 60 and facing a deadline to convert your RRSP within 10 years, beware of the RRIF withdrawal rules — and plan your finances accordingly.
.Non-redeemable GIC's in a RRIF are redeemable
I checked with TDW and they agreed with the accountant and said that all other aspects of the RRSP remains the same other than having to withdraw 5% a year. It'll be nice to save 2k a yr. especially from the tax manarthur wrote:Hmm, I have been doing a similar strategy, I will check on that?