Investment Q&A

Q: My question is why does the CRA not allow subscription to investment newsletters to be charged against investment earnings. I noticed from last years income tax statement of mine which was prepared by an accountant that I was allowed to claim as an expense my accountant fees (as I had investment income) and the fees paid to my financial advisor for this advice. I use the term "advice" very loosely. Both were substantial with the latter being as you would expect very substantial.
We should petition the CRA, or better still Jim Flaherty directly, for the income tax act to allow investment advice deductions from sources other than the big banks and investment houses. Given that more and more Defined Benefits pension plans are being converted to Defined Contribution pension plans it means that more Canadians will have to make their own investment decision. This will be a field day for investment advisors and the banks that they work for.

5iResearch and maybe Benj Gallander's Contarian Investor's are two of the independent investment advisor services out there that would no doubt benefit if their subscription could be allowed as a legit deduction.

Derek

Q: Hello,
I would like to hold the model portfolio but have to add them over time. I am interested in starting the first couple in either growth or income. Out of the model portfolio, which stocks would you recommend that I add first?

Thank you.

Q: Hi Peter and the 5i Team: My RRSP portfolio is beginning to somewhat resemble your model portfolio. THANK YOU! (There are still several "dividend payers" like EIF as well as some dividend paying ETF's like CEW and CAB remaining in the portfolio). I will need to roll over my RRSP into a RRIF by the end of 2014, and would like to use the dividends (for the most part) for the compulsory withdrawals. Are there any tips that you can suggest in terms of the most efficient way(s) to structure the RRIF? Your advice and recommendations are always valued.

Q: "It is better to teach a man how to catch fish than to give him one"...
In this train of thought, I was thinking about this question from a long time ago coming from a teacher in BC about recommending financial books. Over the years I read about 50 or 60 books on investing, finance and personal financial wealth. One book will remain because it is at the beginning of all things within the capitalistic system: "The web of debt" by Ellen Hodgson.
But there is more and today more and more courses about finance are available for free on the internet: Let me give you two sites that I have used: COURSERA and KHAN ACADEMY (6 million users, 4500 new videos on line each MONTH).
And finally for the french speaking out there (any?) the French version of some of the Khan courses will be available on the internet site of Bibliothèque sans frontières starting with mathematics as of september 4th.
As usual,if you think it is worth to publish, please do so.
CDJ

Q: I have taken some meaningful profits over the course of the year but also have some losers in the portfolio. Please provide some insight into tax loss selling. What are the rules and what timing do you recommend, considering that one may want to rebuy some of these positions? Hugh

Q: Hi Team How do I find out how many shares a company buys back?
Stan

Q: As was mentioned earlier by one member T.D.Waterhouse have informed their clients that effective Sept.15 they will be charging their clients $2 per envelope to mail monthly statements and trade confirmations.This will effectively raise their commission fees by about 50% ($2 for the stock trade and $2 for the money market sale.)Thus the cost of a trade at T.D.Waterhouse will be $9.99 +$2 +$2 = 13.99.If one agrees to receive these documents on-line there will be no additional charge.I mention this so that anyone contemplating changing to T.D.Waterhouse will be aware of the implications. If you feel this info is worthwhile feel free to publish it.Thanks again for your great service.

Q: Can you tell me what are the best ratios to look at when evaluating an oil company. Thanks.

Q: Peter; Is there a U.S. inflation indexed ETF ? Thanks. Rod

Q: I have approximately 7% of my portfolio in high yield bond funds and with interest rates expected to go up I was thinking of switching some into insurance companies such as sun life and GWl. Do you think that is a sound strategy? Thanks

Q: Reference to Hussein question about cashing in a defined benefits pension plan. I did exactly that as interests rates are very low yielding a very high payout. The payout depending on your age will have a cash portion which will be taxed at your marginal rate. The tax sheltered portion can go to a LIRA or a Life Income Fund, which is what I did. All I have to earn in return from the funds left over after paying the tax on the cash is 5.5% to equal what my pension would have been. I am getting that with Canadian dividends companies. Also remember that you will have money to give to your heirs once you go but with a pension plan all bets are off. A good source of pension info is "The Pension Puzzle" which is written for Canadians by Canadians. Moshe Milvesky has written some good books on pensions so check them out especially the ones written for Canadians.

Q: what is the difference between bbd.pr.c and bbd.pr.d and can a company recall its share at the market price as opposed to the issue price?

Q: PBH / NCIB

All they have done is reissue the NICB that recently expired.
I found this towards to bottom of the NR.

"The Corporation has in place a Normal Course Issuer Bid respecting each of the above-named securities, which was filed with The Toronto Stock Exchange on August 13, 2012 and which expired on August 14, 2013. The Corporation purchased $810,000 7% Convertible Debentures under and pursuant to the terms of such Normal Course Issuer Bid. No purchases of any other of the above-named securities have been made by the Corporation pursuant to such Normal Course Issuer Bid."

As you correctly pointed out Announcing an NCIB and executing it are two different things.

Q: I own 800 shares of Mid.un in my son's RDSP plan. I also hold 800 Mid.un warrants which may be exercised commencing January 1,2014. I would like to know whether I can sell these 800 shares on open market use proceeds to buy another stock and still have the right to exercise warrants in January 2014 at $9.88 per trust unit. Thank-you
Best Regards
Harold

Q: Hi Peter:
In my RRSP, I still have alot of Bonds in a bond fund and a short term bond (MD stable bond); will it make sense if I switch part of it to a laddered prefer shares ETF or a prefer ETF like CPD; thanks for your help!

Q: Question that has intrigued me. When a guest appears on BNN's Market Call, do you need to tell them in advance what your top picks will be? If so, by how much?

Been appreciating your service from Day 1!

Q: I am planing to go away for few weeks and do hold some stocks which might be not worth to leave unchecked for a while.Which one i should Hold?.MB-T,PNE-T,SUM-T,TIO-T,WFT-T?.I have lost a lot before i subscribed to 5iRESEARCH and scared,so i don't want to repeat.THANKS.

Q: There seems to be a general consensus on business TV that the Cdn. dollar will fall relative to the US dollar. Can you explain why they feel this way with commodities starting to pick up?

Q: In the next 2 months is there likely to be a significant
downside in the market in all or particular sectors, that a largish cash position is a good thing to consider?

Q: what rating limits put stock in the BUY category? A to C, B- ?