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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: My wife and I have defined benefit pensions that meet all our needs. We are conservative investors looking for a 8-10% total return. I am proposing the following equity allocation to enhance our financial position and would appreciate any comments you may have. Thank you 5i team.

50% diversified blend of 5i covered stocks
15% XSP US. stocks CAD hedged
15% high yield bonds
10% ZRE real estate
10% CDZ dividend stocks

PS If I hold XSP in my cash account, would the dividends be subject to the US. withholding tax?
Read Answer Asked by Richard on May 30, 2016
Q: Hi Peter and Ryan,

I have a cash account at TD Waterhouse (TDW), and I use their Investment Savings Account (ISA) for the cash portion of my portfolio. Currently, the interest rate for that account is 0.75%, and it has been at that level for a long time. I also have an account at Meridian Credit Union. They have a High Interest Savings Account (HISA) for short term cash that pays double what the TDW ISA pays, and the interest rate they are offering on that account has been at that level or higher for a long time. My question is as follows: How risky would it be to park more than 100K in a Meridian HISA? In other words, how solid is Meridian as a financial institution?

Many thanks for the great service.
Read Answer Asked by Michel L on May 26, 2016
Q: Hello. Since I started investing, I've been told that selling covered call is the safest and easiest way to earn extra income. However, I've found that the cost of buying and selling covered call options in the Canadian stock market is extremely expensive. If the stock is called away, the bank will charge an extra $49 as handling fee per transaction for both sides (no matter the amount of the contract). Do you know if there are any investment institutions that offer no handling fee at the end of the expiry? I've heard that Interactive Broker may be one of them. Are you aware of any others? If I could switch some of my portfolio to a cheaper trading institution, do you think it is worth the hassle to sell covered call? MANY THANKS.
Read Answer Asked by Esther on May 26, 2016
Q: I bought WAJAX Corp 10 years ago at a much higher price and held it since. After a rough ride it seems that this company is turning the corner with some decent earning and a better estimates from analysts. Could I please have your views and if it is worth holding, if not what I can replace it with. It is a small portion of my portfolio and diversification is not an issue. Thanks
Read Answer Asked by Saad on May 26, 2016
Q: Hello,

Two part question. First, thoughts on NYX Gaming's earnings report? Second, Intertain just reported strongly, is considering strategic options and seems to be generally acting better. Would you switch any holdings in NYX to Intertain? Also, from a technical standpoint does Intertain appear poised for a breakout if it can ever shake free of the 12-12.30 range?

Thanks
Read Answer Asked by Tim on May 26, 2016
Q: Have difficulty understanding the sector alllocated for some stocks. For instance I thought NFI would definitely be Industrial but in my BMO portfolio it is classified as cons disc along with DOL - which I get. I want to increase my Industrial sector so could you go thru your three portfolios and list the stocks that would be classified in this sector? Thanks.






Read Answer Asked by Arthur on May 26, 2016
Q: Morning,

Just a question regarding how you determine returns for the model portfolios. Is it based on time weight return (Modified Dietz method), or is it a money weighted return (XIRR).

I'm trying to figure out how to determine my returns on my own portfolios, and have been using XIRR since the beginning, which do you use or suggest for a DIY investor?

Thanks.
Read Answer Asked by Sarj on May 25, 2016
Q: Hi guys, I apologise for beating this topic to death but at what percentage of the float do investors start to worry when a stock is being shorted.

Thank you
Read Answer Asked by ron on May 25, 2016
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