Investment Q&A

Q: I just sold about $5,000.00 in stocks inside my TFSA, with a little profit of $500.00 over the period of 8 months. I did it so I can add it to my self directed RRSP account to lower my taxes this year. In my RRSP I own approx 20% oil,15% financial, 10% utilities, 10% auto, 5% marijuana and the rest is in CDZ. I want to diversify this portfolio. It accounts for 75% of my investments. I am considering a REIT and some technology. What do you recommend?

Q: What's your advice for a younger investor with regards to TFSAs and RRSPs versus non-registered accounts? Should we direct all our savings to registered accounts until we max out our contributions and then direct excess to non-registered accounts? Is there a case to be made for the tax-loss advantages of non-registered accounts before looking at RRSPs? I see TFSAs as a more liquid savings account and an RRSP as much less so. Thanks.

Q: Hello,

The following 5 companies are on my buy list to complete my portfolio:

PBH
TOY
NFI
BCE
CAR.UN

I have room for two in my TFSA, two in my non-registered and one in my RRSP. How should I divide the above 5 stocks into these accounts?

My plan is to buy on pullbacks. But I'm thinking about buying CAR.UN now because it has already pulled back on the mortgage news. Does this make sense?

Q: Peter and His Wonder Team
This is a question about RSP and RIF accounts. What happens when you sell a stock for profit in these accounts. Do you have to declare the profit immediately on this years tax return? Or do you just pay the tax when you withdraw money from the account... when you must withdraw a certain percentage every year after 65years of age. In other words your profits can just accumulate in the account and taxes are assessed when you withdraw funds out of the account itself?
Dr.Ernest Rivait

Q: I am a new member to 5I and wish to realign my RRSP investments partially with the above stocks in my balanced portfolio. Kindly give your input. Thanks

Q: Total return index ETF; is it good ?

Q: BXF / First Asset 1-5 Year Laddered Government Strip Bond Index ETF

How do you feel about BXF compared to CLF? BXF is supposed to be more tax efficient outside a registered account. (I am looking at holding it outside a reg account). Are there any other comparable tax efficient ETFs?

Q: Can you please provide a strategy summary for the following.
I'm trying to find a quick general guide to what types of stocks (and why) are best placed in a RRSP, what's best for a TFSA and what's best for a non RRSP/TFSA account.

thank you

Q: If US Limited Partnerships are held in a RRSP/RRIF are the distributions liable for US tax? If yes, does the broker withhold the tax ?

Q: If a Canadian based ETF (e.g. VUS) invests in a US company or ETF (e.g.VTI), isn't the dividend paid to the Cdn ETF subject to US withholding tax, regardless of whether it is held in a registered or taxable account ?

Thank you for your outstanding service to us !

Bob

Q: Hi team, I love the new site. The ability to save to watchlist is fantastic! In my RRSP, I hold GUD, IT, PLI, WCP, SPE (.5 position) and SGY. These are part of a multi-account balanced portfolio, so my question is not so much to do with sector, but with SGY and PLI. I am down 50% on SGY and wondering if these funds are better deployed elsewhere. I am up 100% on PLI and can sell half for another position. My RRSP is a very long-term hold account. I keep an eye on things, but don't usually make any moves except to trim gains. As you can see from my list, I can handle some risk if I was to replace SGY and sell half of PLI. Am I better off to continue to stomach the 50% loss on SGY or move into something else with better growth potential? If so, what would you suggest for 2 long term growth positions? I have been watching OTC, BCE, SPB (I bought CUS on your suggestion), FSZ.

Q: I have a well diversified group of ETF's in RRSP and looking to add a few individual stocks. Are there 3-4 stocks with good valuations that you might suggest? Thanks.

Q: For a long term hold in a rrsp what would ur preference be. Thks and keep up the good work

Q: How would you design an RRSP for someone with no investment knowledge and no interest in acquiring it? The RRSP would, in effect, be an unmanaged black box. The parameters for the RRSP are a lump sum input and a twenty year hold. The holder has no other investments, but is likely to have a solid pension independent of the RRSP.
To me, a reasonable plan would be to distribute the initial sum 40% XBB, 20% ZLB, 20% ZLU, and 20% ZLI, then DRIP everything. I like low volatility ETF's in this context because they have a bit of formula-based active management built in.
What do you think?

Q: Regarding the question about a U.S. citizen holding mutual funds in a RRSP account, my tax professional advised me that anything can be held in a RRSP account since they are covered by a tax treaty.

If Canadian mutual funds or trusts are held outside of a RRSP extra tax forms must be filed, which can be expensive. U.S. stock can be held in any account.

Q: Hi,

I'll be taking over my spouses RRSP account. She's dual citizenship, American/Canadian and we've had mixed counseling with respect to whether she can hold mutual funds in an RRSP or not. Can you shed some clarity on whether or not she can? Can she hold US listed stocks?

Any other comments on an RRSP account of someone of dual citizenship would be much appreciated.

Best,

Cam

Q: If holding for the long term, does it make more sense (taxes) to have these stocks in a RSP instead of a cash account?

Q: I am retired and hold GE, Wells Fargo and JPM inside my RRSP. I am still a few years away from having to convert my RSP to a RIF. Considering where the Can dollar is trading I am thinking about realizing my currency gains by selling these 3 stocks and replacing them with Canadian financials and maybe a pipeline such as Enbridge. What are your thoughts on this strategy ?

Q: RIF withdrawals/ deposit: Lots of interest in TFSA's these days - but some of your customers might be in the same situation as I was re 2015 RIF withdrawals.

I believe the mandatory withdrawal rates were lowered after January 1, 2015. I had taken out my required % .... and then later in the year advised that the difference between the old %withdrawal and the new % withdrawal could be re-deposited in my RIF until Feb or March of this year.

Do you have any information on this? If so, it might be a useful option some folks by re-depositing the difference and reduce their 2015 income tax.

Thanks.

Q: If I transfer a stock in kind to my RRSP account,is it advantageous to pick one that is down a bit that you think will eventually come back up(Altagas,Vermilion,etc)or Sunlife that I am up on price on.Thanks Don