Investment Q&A

Q: Hi Peter and Team,
BCE is hitting an all-time high today. I own a small position and have been watching over the last 6 months or so for an exit point, for two reasons: 1) it is held in an RESP which we need to take some $$ out of, and 2) I chose BCE to sell because we expected little in the way of growth. Perhaps I am wrong...?
What are your thoughts on the near/mid term outlook for BCE? We could instead consider selling a couple of other holdings: ESL, GRC, AVO, CNQ, AW-UN, GUD, HWO, TII, MIC, WIN, and Sprott Small Cap Equity Fund.
What would you suggest selling?
Thanks again for your excellent service!

Q: Hi Peter, our RESP needed in 5 years has BNS, T, GUD (bought today), and TCN (bought today) @ $6k each = $24k plus $18k in cash. What would you do with the remaining cash at this time ? Thank you, Paul

Q: Hello Peter and 5i team,
These are the current holdings in our grandson's RESP [ a toddler ]. Please advise if the selections are still effective and any changes. What additions would you recommend for new money?
AVO, AYA, CPH, CXI, DHX.B, DSG, XTC.

3 ARE DOWN SUBSTANTIALLY [ AVO,CPH, AND CXI ]. Should we sell any of these holdings. XTC is up nicely. Do you still like this sector?

Thank you for your advise .

Q: We have been blessed with two granddaughters this year and want to start an RESP for them to take advantage of the 20% government grant. Starting out the amounts are low so we are considering purchasing GIC's. What investments would you consider appropriate when starting out and as the funds increases.

Wishing you and your team all the best for the upcoming holiday season.

Bob

Q: Based on current valuations and diversification, please name 5 " steady eddy" stocks for a RESP with a 10 year hold. I am considering Telus, Loblaw, TD Bank, Boyd Auto Body and K Bro Linen. Thank you.

Q: I have a new baby (less than two months old) and have just set up an RESP. We plan to contribute $2500 each year to get the government grants and grow a portfolio. Because $2500 is fairly low, what would you recommend as a starting equity position for this? Would something like GUD or DHX.B be a good start, or wouldis there an ETF be recommended first?

Thanks!

Q: We have to sell one of these to pay his tuition
Which would you sell
Because he is overweight BNS , I thought we should sell 1/3 for a loss ... but perhaps that isn't a good strategy .
BNS (big loss) , OTC (loss) , XSP (loss) , GWO (gain) , L (big gain ) , ATD.B ( huge gain ),
Are RESP losses non claimable ???

Thanks

Q: I will deploy cash soon from my kids RESP account, and I want to buy the companies in US. Since I can't hold US dollar cash in RESP account, I am thinking of buying below ETFs hedged in Canadian dollars.
10% -- ZUB (Financial Sector)
10% -- ZUH (Healthcare Sector)
20% -- ZQQ (Technology Sector)
5% -- ??? (Which ETF is equivalent to IWM?)
55% -- XSP (S&P 500)
Please comment on above combination and sector weighting. Thanks!

Q: I am starting an RESP for a 2 year old with $5000 and will add $1000 each yr. Can you advise me what to invest in or what portfolio to follow. Do I buy a little of many companies or just add new ones each year
Thanks

Q: Good Morning Team,

Would you please provide a recommendation for a European ETF that could be purchased in Canadian dollars? The funds would not be accessed for at least six years. The ETF would form a 15% position within an RESP.
Thanks,
Richard

Q: I have a family RESP with: $37K BYD.un; $44K CSU; $7K FSZ; $18K RY; and $82K cash. Two of the 3 beneficiaries are in their first year of a 4 yr program, and the third beneficiary won't be out of high school until June 2019.
I'll likely be taking out about $30K per year of EAP for both currently eligible kids. My plan is to keep the contributions and take as much earnings and grant out for the first two kids as I'm not sure what's going to happen with the last child.
About $100K is due to contributions (untouched).
I think BYD and CSU are definite keepers. I believe you still have faith in FSZ (but in the last 18 months I've held it there's been an overall 2% loss). I'm not sure what to do with RY and the cash balance.
I'd love to hear your suggestions!

Q: Hi Peter, our 13 year old has $40k in her RESP. $20k is ~evenly split between BNS, ESL, and Telus. At this time where would you put the remaining $20k ?
Thank you.

Q: Dear Peter and team.

I am switching a $25,000 family plan RESP (for 2 kids ages 6 and 4) to a self-directed account and would like to create a diversified and safe portfolio. I plan on maximizing annual contributions and expect the government top up as well, so will add $6,000 per year. The funds will not be needed for 12 years and I am willing to weather some volatility. Do you think an 8-10 stock portfolio is a good starting point, with the annual lump sum contributions used to add 1 or 2 new positions each year? If so, could you recommend 8-10 stocks to be acquired over the next month or so?

Many thanks for an amazing service!

Q: You have mentioned in previous answers that stock allocation in an RESP should be independent from other account holdings due to the defined time frame when the money will be used. I have an RESP for my 8 year-old that consists of $10,000 BNS and 10,000 SLF and $6500 cash. I plan to deploy the cash in March. Do you have any recommendations on a single additional stock OR might I be better off to sell BNS and SLF and buy a few ETF's to sufficiently diversify? I still have 9 years until she heads to post-secondary.
Thanks.

Q: Hi Peter and team
I hope you can help with this dilemma. I want to open an RESP account for my grandchild and I have like to hold Uas stocks in this account. I have been told by RBC DI that they only set up CAD accounts in RESP's. Do you or any members out there know of what alternatives I have to do this? If there is such a possibility does it qualify for the CESG having USD stocks?

Q: Reading previous responses, 5i appears to suggest treating all accounts (cash, RRSPs, TFSA) as a whole when considering how diversified a whole portfolio is. There is also a suggestion to place higher risk (growth) names in TFSA accounts because of the potential tax benefits. I agree with this approach and am considering both mine and my spouse's accounts as one large portfolio.

What is the suggestion if I were to setup a new RESP for a young child? For instance, if I initiate $5,000 position in a high growth name such as DHX.B, this may be a small weighting in an overall family portfolio, but now I am basically betting the future child's educational funds in one stock. If the child is very young, high growth is desired, but is this the right approach? Or should I be trying to diversify the $5000 into multiple stocks (perhaps 5 stocks at $1,000 each)? A list of some potential stocks would also be appreciated. Thanks!

Q: Hi Peter and Team:
Your service is the best $120 I invest every year!
I would like to select 3 ETFs for my children's RESP. Can you recommend, in your opinion the best:
Canadian Index ETF
US Index ETF
Bond ETF

Thanks!

Q: Hello team,

Bad, bdi,byd.un, cgx, esl, lnr, sj, slf, stn are the holdings in my child RESP and would not be needed in the next 3 years (grade 9). We have accumulated enough contribution for a new position, would you suggest buying another new position, adding to the current down ones (equal weighting) or getting an ETF for diversification?
If you suggest a new position or an ETF, could you suggest one or two of each to pick from?

Thanks for the great service.

BK

BK

Q: Hi Peter, I have these Mutual Funds in my portfolio and they have done extremely well in this market environment, I wish more people shared they good investments here. While I am at it, would like your opinion of TBE and RMM.un. many thanks, Joe.P Burlington

Q: Can you please comment on the following group of stocks for an RRSP for a 10 year old and a 7 year old; AYA, ATB.B, T, BNS, SLF, WCP, SJ, STN, ENB, CSU. Also, can you please suggest a US ETF to round out the account. Thanks!