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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am not quite clear on tax implications for the following scenario. Could you please confirm (or not !) if I am correct or if there are other implications ?

If, in a Non-Registered Account, I hold a Canadian-domiciled ETF or Mutual Fund that owns a mix of Canadian, U.S. and possibly other international companies, then:

1) 15% of the U.S. company dividends will be withheld by the U.S. (Or whatever equivalent withholding tax if non-U.S.but international) This amount is reported at year end through the Fund/ETF, and reflected on the tax slip I receive from my brokerage. When I fill out my return, I can then apply for a foreign tax credit which means I should get back all the tax that was withheld.
2) The portion of dividends from the Canadian companies held by the Fund/ETF will be eligible for the Dividend Tax Credit but NOT the portion from the U.S. or international companies.

Thank you for your help !

Read Answer Asked by Alexandra on January 25, 2017
Q: I have about 110,000 dollar that I will be investing in your balanced portfolio and the etf ViG. About 45,000 dollars will be in a non registered account and 65,000 in TFSA. I am avoiding RRSP because I have a good pension. My tax person said that I would save tax by putting the non dividend equities to the non=registered account. I plan to leave the investments in for 7-8 year As well will vig be taxed at a higher rate because it is non-Canadian if it is in the non-registered?
Read Answer Asked by Stephen on January 25, 2017
Q: I have a note from you wrt to CPD so am aware of its rate reset properties - which should be positive in the anticipated rising rate environment. However, I have not followed prefs before and wondered how they might perform should we get a significantly negative equity market, and - additionally - whether the managed version might do significantly better in those circumstances. Appreciate your opinion. Thanks.
Read Answer Asked by Mike on January 25, 2017
Q: Hello 5i team. I'm new here.
With volatility perhaps increasing soon, but not wanting to be entirely out of the market for next 100 days, which U.S etf, would you recommend, ZPW(put write), ZWH(covered call), ZLU(low volatility)or other ?
Read Answer Asked by Bernie on January 24, 2017
Q: Hi Team,

I have the following Allocation:
08% Growth Portfolio
17% Balanced (Model Portfolio)
45% Income Portfolio

This makes a current 70% in Canadian Companies and 30% in cash. The Stocks are held in RRSP portfolio, and I would like to put the remaining 30% into Non_Canadian Dividend/Growth Income area. Can you recommend which ETF's might be able to round out the remaining 30% for me?
Read Answer Asked by Ben on January 23, 2017
Q: Hi 5i,
My partner and I are 60 yrs. old, both newly retired with no pensions. 50% of our portfolio is in banks (one in the US), the rest in renewables and the occasional tech stock.
We are thinking with Mr. Trump now in office, we should probably look at gold. Presently we have no gold, even though I see comments that 4-6% of your portfolio should be in gold. What would you suggest for us? Stocks, bullion? If stocks, which ones and percentage of each would be valuable.

Thank you!
Read Answer Asked by Wendy on January 23, 2017
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